String fullTitle = 'Homestead vs Golden-Handcuffs';
int postNumber = 2790450;
String image = '1713838318694748.jpg';
String date = '04/22/24(Mon)22:11:58';
String comment = 'I'm in a financial quandary, /diy/.
I've been looking for the dream property for a homestead, and one has recently come onto the market. Had everything I could want: Attached greenhouse, tillable land, fishable stream and move-in-ready house. A few rooms are in need of an overhaul, but nothing I can't do myself. If this were 2020, I would have already made an offer without a second thought.
However, due to inflation and interest rates, I'd have to mortgage the property, and my monthly payments would be 50% of my current income. I don't imagine rates are going to come down anytime soon, and I've only seen 2 of these Goldilocks properties pop up in the last 5 years.
In contrast, I already have 70% equity in a suburban house that I have built up myself and have numerous creature-comforts that would take some years to replace. Remaining payments on a cash-out refi are ~9% of my current income.
>TLDR
>Stay under budget with a dream?
or
>Buy into the dream now & break the bank?';
'You know the answer, just stick with what you have. 50% of your income going into the mortgage could turn into a shit show real fast';
'>>2790450
bird in the hand. pay off the one you have, then save the monthly payment in a HSA. once you are mortgage free, you don't have to pay 100% cash for homestead dream.
save for a bit. sell the 1sr house, buy new house and apply ALL of the cash from the first home sale. recast your loan if your mortgage merchant allows it.
don't make a dream into a nightmare.';
'>>2790472
all of this I say, from experience. this is EXACTLY what we did. now we have the homestead dream AND we can afford it. we are not and never have been rich. just methodical.';
'>>2790450
Why are you waiting for listed properties? Go to the county you want to move to, and find unpaid property tax land on the rolls. Pay the unpaid tax and acquire said property.
Paying for Listed properties is a goyish/clownish thing. PARTICULARLY for a rural homestead property. Waiting for a Listing, then you are also competing with every other NPC lazy moron, and speculators. Wall Street etc has UNLIMITED money. That's why Blackrock has been buying everything up. The real back books don't work like whatever the prestigious 'Financial Times' or whatever other rag that blows smoke up your ass, says. Banks make money from nothing. Nothing.
You sign a Note. The bank cashes that for the value of the Note. They get cash for that $250,000 or whatever, at their central bank window access (from the Fed). Then you sign a separate mort (death) gage (grip/contract etc), to pay the SAME amount, to the bank, plus interest. Who's retarded? Oh, and if you ever challenge it, ask where was the consideration for signing the Note. Because they didn't give out any cash, or the house. They kept it all, because you were a rube that didn't realize there is no (real) money, only fiat.
Just like living in a company town, and getting credits for your labor. A currency the company accountant makes from nothing.';
'Does the 50% factor in the sale of your house?
Can you rent out the house?
Regardless it doesnt sound that bad a lot of people pay more of their income in rent
Im in a situation right now where im quite poor because i followed my dream but im also happier than ive ever been
Money isnt everything and you find ways to make it work';
'>>2790458
Thank you for your input. I knew it was a stretch, I guess I just needed to hear it from someone else.
>>2790547
In my state, you can't claim a property by paying the taxes on it, and I don't want to squat on a lot if my neighbors can just shoot me for trespassing. The counties I'm looking in have auctions on defaulted land in September, and large farming operations scoop up all tillable land and carve out the residential plots. I don't have the same level of liquidity as bigger players. Going through a listing service is how I find properties most of the time, since the county's and banks near me do a piss-poor job of updating public foreclosure records.
>>2790549
>Does the 50% factor in the sale of your house?
Yes, it assumes I dump all of my equity directly into 20% of the sale price.
>Can you rent out the house?
I could, but amenities on the property (in-ground pool, playground, etc) have me worried about liability. The area id like to move into is an hour away, and unless I pay a rental management service to take care of it and take a big chunk of the payout, I'd be hiking pretty far to inspect and maintain the house.
>Regardless it doesnt sound that bad a lot of people pay more of their income in rent
Ive been lucky enough to avoid high housing costs for several years, 50% is totally doable but as the fp said, I should be a little worried if something else pops up and drains my savings. Idk if I could be reasonably happy if I have money worries in the back of my mind.';
'>>2790450
snag it while you can OP.
>>2790458
>50% of your income could go to shit
lmao what the fuck what planet do you live on? most people are literally at a zero rate of savings, or 100% of their income. 50% for mortgage is honestly perfect.
go for it OP.';
'>>2790458
I say stay as well. You don't want your house to own you.
>>2790671
>spend literally half the money you make on keeping a roof above your head, leaving the other half for every other single thing that you need to pay for
Terrible advice. Life is more expensive now than ever before. You don't want to tie up half the money you actually take home, for the next 30 years.';
'>>2790685
>life is more expensive now
yeah, if you arent a subskilled brainles, YOU are more expensive now too.
>for the next 30 years
realistically for the next 4-5, as inflation widens the gap between your monthly payments and your take home amounts.
land crisis is about to begin, if OP wants a spot you either get it now or have fun paying 10x more while trying to buy from BlackRock next decade.';
'>>2790724
He literally already has a spot, he said so himself. He's asking if he should bail on it for a better one that's also way more expensive.';
'>>2790547
>>2790724
Blackrock doesn't buy residential properties, retard. You're thinking of BlackSTONE.';
'>>2790643
> in my state
Then GO somewhere else. Who said you had a religious obligation to stay within imaginary physical boundaries that you didn't even draw?
>>2790757
> hurr hurr it's dragonblackdildo, retard
I don't care.';
'>>2790872
Yeah, you don't care, and it shows just how little you actually know about this topic.';
'>>2790872
>> in my state
>Then GO somewhere else.
Name one place where paying off overdue property tax on a plot of land grants you title or deed. I've researched estates with overdue taxes when negotiating cost, since families with overdue taxes are more willing to drop sale price to get out of default, but aside from being on the hook for outstanding balance on a foreclosure, that's not how it works anywhere in my country, let alone state.';
'>>2790724
What crisis? The crisis of a bunch of boomers dying and all their kids trying to get 500k+ for it at the same time?
Population is collapsing not booming bro.';
'>>2790450
Chasing ideals at high financial risk is unwise and the objective of a homestead is LOW cost and LOW overhead and QUICK payoff.
You did well by the posted figures which argues for not changing and waiting until your current home is paid off. Inflation etc is not eternal.
Also note you need a convenient place to grow old and weak in so take your eventual age and declining health into account before purchase. A single storey house with a shallow pitch roof that's easy to replace matters because stairs break old people and at any age you will eventually fall, plus they suck to move furniture over.
>>2790908
What matters is low cost. I bought my first property FSBO thus invisible on credit checks. I paid that off while using a coventional loan for my second cheap property which I paid off later. What makes land cheap is small old homes, and small makes them easy to fix.
Once your current home is paid off, take no loans against it because if you lose your income you lose the house.';
'>>2790934
>population is collapsing not booming
except it just isnt. its a ruse. its in the nation's best interest to keep exponential growth of population because the debt machine needs more and more consumers and debt slaves to drive it, which is why we're also letting millions of immigrants into the country. the effects are noticable everywhere. population is not decreasing and likely never will sans another black death or world war.';
'>>2791155
It's decreasing everywhere, the third world can't even support this. They're down from 7 kids to 4 well on their way to 1 like us';
}