I Called In Sick Today

[SuitedAces21 2,723]

sorry bro. keep truckin.

[Napa Lite 3,279]

I mean, it depends on how much I end up paying for a house and taking into account market rate for renting, which I am absolutely not paying right now.

 

So, with those parameters over a 36 month period:

 

pure monthly cash flow basis its about $1k more expensive to buy

 

monthly cash flow with tax benefits it’s about $850 more expensive

 

From a net worth perspective it’s about $600 more expensive to buy when accounting for equity (with 0% appreciation and ignoring selling costs to access said equity).

 

If I get a roommate, which I will most likely have if I’m renting anyways, other wise take another $200/month in buyings favor, it will be basically even on a cash flow basis and maybe $100/month net worth wise in favor of buying. But that’s also not accounting taxes on rent gains and stuff or taking into account other costs of ownership.

 

If I do factor in 3% appreciation it starts really skewing in favor of buying. But then I also should probably account for cost of ownership stuff and increases in property taxes and sweat equity but then it’s a full blown model and as my boss likes to say “don’t imply a level of precision that doesn’t exist”.

[InternetExplorer 2,609]

Are you ready to commit to that area (the standard 5yr ownership assumption)?

 

What are the tax benefits? I paid off my mortgage earlier this year after looking at the state of the market and the changes to the tax law. Plus, having that money invested was really just gambling with funds I will eventually need for a down payment on a more permanent place. It just made sense to me.

 

I think it is probably fair to assume 0% growth and truncate all the cost of ownership stuff. I personally think home prices will start to feel the pain as rates continue to normalize, but demand is ****ing crazy now that the job market is in such good shape, all the households coming in as first time buyers post-recession, etc. I don’t know anything anyone else here doesn’t already, though.

[Napa Lite 3,279]

Yeah, 5 years is fine. Barring some major life event I see no reason why I would need or want to move.

 

Any real tax benefits are up in the air at the moment because MN’s state income tax laws basically mirrors the old federal rules and they haven’t decided if or how they’re going to change, so it could be an even bigger benefit or null.

 

But my assumptions are based on an average of mortgage interest + property taxes + state income taxes + misc other itemized deductions being around $4k more than the standard deduction.

[Napa Lite 3,279]

Basically my price range goes

 

Perfect - $190k

Edge of comfortable - $210k

Max -$225k

Stretch - $230k

 

That’s without a roommate. If I decide to commit to always having a roommate I could probably go up to $275k but I would never ever do that. $230k is my hard cap and the house has to be literally perfect.

[brvheart 1,757]

12 total offers.

 

Holy crap. It feels like a really bad time to buy. 12 offers is the definition of a seller's market and buying high.

[InternetExplorer 2,609]

Holy crap. It feels like a really bad time to buy. 12 offers is the definition of a seller's market and buying high.

Article is kinda dated, and behind a paywall, but...

https://www.wsj.com/articles/buying-a-home-will-be-harder-than-ever-this-spring-1491048002

 

"It isn’t just hot spots like Seattle and Denver that are seeing scarce supplies of homes for sale but also sleepier locales like Minneapolis, Cleveland, Nashville, Tenn., Tampa, Fla., and Louisville, Ky. These markets typically are enjoying strong job growth with young first-time buyers out looking for homes, but also declining inventories, according to Svenja Gudell, chief economist at Zillow.

[...]

What’s more, there is a growing mismatch between an abundance of high-price inventory on the market and increasing demand for starter homes. In Minneapolis, 32% of online searches are for starter homes but 21% of the inventory is in the appropriate price range, according to real-estate tracker Trulia. There is a relative glut of luxury homes, which account for 40% of searches but 58% of the inventory."

 

These same kinds of articles were being written back in 2015. My experiences were kinda in line with Napa's, which is why I chose to severely sandbag on my purchase and save the difference for a few years. Napa's situation just screams "rent" to me. IMO, even if this dumb bullshit still hasn't subsided in another few years, Napa will have more income/savings and thus the option to go further up the food chain.

[Napa Lite 3,279]

Yeah, I’m leaning more and more towards renting. I even offered to my current roommates to pay $850/month (up from $500) to continue living here until 3/31 of next year.

 

I’ve got a place to live for $600 until probably October, possibly even longer. I’d just prefer to not have to move multiple times and the other place is a married couple. I’d more/less have the 2nd floor to myself and they have a dog that gets along great with Mack but still.

 

I just hate the uncertainty of not having a “permanent” place and, believe it or not, I’m prone to overthinking things and getting worked up. And I really want a place I can just make my own.

[InternetExplorer 2,609]

It’s an awkward spot. I don’t know that I would have the willpower to hold out either if I were you. Obviously it’s not going to change your life much either way.

[InternetExplorer 2,609]

I’ve been working from home more often lately, which has done wonders for my coding productivity. I moved my desk to be able to look out at the woods, and I guess that was the trigger for making me want to spend more of the day here.

 

In one week, I have knocked out what would have taken a month or more via working in the office. I am in a cube farm, and people just constantly stop and want to chat with me—fine for some tasks, but really not conducive to coding. My boss doesn’t seem to care, but I’m trying to stay mindful of the fact that the social aspect plays a huge role in my job (being around to notice someone struggling with a fixable problem).

[Napa Lite 3,279]

But, whatever, even if values immediately plummet, as long as I don’t lose my job for an extended period of time, I’ll be OK. I’ve got time to wait for the rebound. And it wouldn’t be the first time I’ve lost out on an easy gain by buying at the top, or not at all.

[Napa Lite 3,279]

I would do anything, except for actually asking, to be able to work from home one day a week. Be able to take my time waking up, no 1hr+ spent driving, having my dog around, be able to run actual errands over lunch, Netflix going in the background, no coworker constantly threatening to body slam me...man, that’d be the life. Doesn’t even matter what day of the week.

[Essay21 2,387]

I can work from home whenever I want but I rarely do. I need the routine of getting up and going to the office.

[brvheart 1,757]

Yeah. Working from home would be great, but I don't trust myself to get enough stuff done.

[BigDMcGee 3,355]

I know the Lincoln market is bonkers right now. People putting offers with out visiting the house first, or the house is off the market. it's crazy.

[Essay21 2,387]

Whoa I cant believe TJ Miller left Silicon Valley. That’s some BS. Loved his character.

[InternetExplorer 2,609]

Whoa I cant believe TJ Miller left Silicon Valley. That’s some BS. Loved his character.

Sounded to me like he pretty much deserved to be let go. He is gonna be fine either way, unless his spending is just outrageous. Which it probably is. But yeah, kinda drove his career straight into the ground after that happened, between his project choices and awful standup special. I think he just has a huge ego.

[CobaltBlue 662]

Whoa I cant believe TJ Miller left Silicon Valley. That's some BS. Loved his character.

From everything I read, there was a huge amount of discord. Like, he wasn't very reliable about showing up or staying sober.

[Essay21 2,387]

it’s just a damn shame. I’ve read how Kelsay Grammer was like that on the set of Frasier. The greats often have problems.

[brvheart 1,757]

I will definitely miss his character. Him screaming at Jian Yang always got laughs from me.

[Theraflu 1,035]

I can't tell if you know about his drunken fake bomb threat or not.

[SuitedAces21 2,723]

i didn't, but i do now. sounds like he's hitting rock bottom.

[Ron_Mexico 4,219]

Silicon Valley is becoming tiresome with the same notes on the jokes and the guaranteed failure of a project. Even the one liners are getting stale.

[Essay21 2,387]

Silicon Valley is becoming tiresome with the same notes on the jokes and the guaranteed failure of a project. Even the one liners are getting stale.

 

I would agree. The same failures are annoying. Have them grow as people and stumble against new and different challenges. But overall it’s a solid show.

[Theraflu 1,035]

Barry has been quite good, I recommend it.