Acquiring Property For Idiots

I'm tired of seeing people posting that "mortgages are just the bank fucking you" and "owning property is letting the jews win" and all this shit. Yes, centrol banks own everything and there's not much you can do about it, but that doesn't mean you have to be a pathetic NEET for your entire life.

Here's how to own a house and make more money with the bank's money than the bank is making:

*DISCLAIMER* If you live in a big city and think that property is too expensive to purchase, it's because it fucking is and you have no busy living inside the big city you fucking moron.

Find a decent vacant lot for ~$50k. There are lots around if you look online in your area, it doesn't have to be huge but the more you can get over a half acre, the better. Yeah, you might have to look outside the fucking city you spoiled piece of shit.
Now the bank will fund you to build a house on that lot, it's called a builder's mortgage. They give you money in increments based on what the final value of the house/lot will be. They have no problem with lending you $200k to build a house that would sell for $400k.
Their first payment has the cover the cost of the lot AND get your house to 40% completion, though, which is where most people struggle to get through. You'll probably need to borrow some money to get through this part, but don't worry, you'll get it back once the build is done. They are giving you the FULL cost to build the house in full, they're just lame about the increments they give it to you in, in order to cover their ass. They don't want to give you the first payment and have you go to Vegas and blow it, and all they can take from you is a vacant lot that isn't worth what they've given you already.

Other urls found in this thread:

cibc.com/ca/mortgages/calculator/mortgage-payment.htm
twitter.com/NSFWRedditGif

Build a decent house. As in, don't build a piece of shit. Spend some time looking at floorplans and decide on what you're able to afford square footage wise. I just recently built a 1750sq ft home with a fully finished basement for ~$230k. The monthly payment on our mortgage is ~$1150. Make sure your building contractor is including the price of a fully finished basement in the total cost. Two bedrooms, kitchen, bathroom, laundry room in the basement, and there are two sets of stairs to access the basement. One is from the garage, one is inside. Think about which rooms should be above which; you probably don't want the living room in your basement below your bedroom. Use your head.

Complete the house, and rent the basement out to either a couple or two separate people.
Price the rooms comparatively to what a dorm room costs at your nearest college/university if you're near one, and if you're not, make sure it's priced comparatively to other rented properties in your area. If shitty ass two bedroom apartments that are small in an apartment complex are being rented for $1000/mth, you can get more than that easily. You are offering a brand new, clean, never been lived in, LARGE two bedroom apartment.

Now, use their rent to pay your mortage off. Where I am, shitty fuckin dorm rooms are rented for around $600/mth. That makes renting the basement to two students EASY for $1200/mth, because it's the same price as a dorm but a hell of a lot nicer. We're close to a university, so that allows us to be a bit more choosy with who we want living there as well, but it's not all that hard to find small families looking to rent a basement apartment rather than a regular apartment, because, again, it's nicer.

With the mortgage being $1150/mth and rent coming in at $1200/mth, any amount of money you are able to save is able to be chopped right off of your mortgage. My wife and I budgeted ourselves around $1100/mth, so I knew we are comfortable with giving that up. So we put that on top of the rent, and the mortgage gets paid off fucking way faster.

By renting the basement out and also holding ourselves responsible for "paying" the mortgage ourselves as well, we are able to pay off a shitpile of the mortgage over the course of two years. The interest in the first year was around $6500, and we're aiming to pay off close to $28k. The second year we'll pay off a similar amount, but the interest will be less due to owing less.

In two years time, we'll be able to sell a house that we initially paid $230k for, and have the mortgage paid down to ~$190k, for $400k. Our house was appraised by the township at $450k nearly right after we moved in. If you don't believe that houses sell for a lot more than what it costs to build them, you need to give your head a shake. Houses are still being built, so there's your proof.

That's $210k in our pockets if the appraisal is accurate, but we paid ~$55k into the mortgage during that time. Now, we could have done that right off the hop (sold it), but the house value is still pretty much "brand new" after two years. Also, if you don't live in the house for at least a year (I think) you get taxed on all that. So you might as well live in the new house you just designed and built for a couple years.

So basically you start with fuck all, nothing, and go to SAVING ~$155k over the course of two years for living in a new house and renting the basement. You don't even have to sell it, if you stay there and continue doing that, you'll have the mortgage paid off in EIGHT YEARS. The bank gave you the money hoping it'd take 25 or even 30. The bank is willing to give you an amortization period of 30 fucking years and you can pay it off in ten and the house is brand fucking new. And if you don't want to commit to that, you can sell it after the 2nd year for a profit.

Now, you don't have to pay the mortgage off that fast. If you're okay with giving the bank way more in interest, you can have your tenants pay the mortgage for you forever. You're still on the hook for property tax and utilities and all that, but not having a mortgage in a brand new house is a pretty sweet deal. It's certainly way better than being the one paying the rent for the other guy's mortgage.

Here's the numbers because I know people will try to say that it's bullshit. You need to make enough money in order to support an $1,100 mortgage payment, that's it. If you can make the mortgage payment, the bank is happy to give you the money and rape you on interest over many years.
Those of you paying rent probably pay close to that already.
My bank is CIBC so I used their mortgage calculator for reference.2.79% on a two year fixed rate
cibc.com/ca/mortgages/calculator/mortgage-payment.htm
>First year
$230,000 + $6417 interest = $236,417 owed
Payment is $1,064/mth = $12,768 per year
1200 in rent x 12 months = $14,400 per year
You are paying $1,100 per month = $13,200 per year
So you're paying off $27600 total minus the interest per year

Which means, after the first year, you owe $208,319
>2nd $208,319
>3rd $186,028
>4th $163,112
>5th $139,551
>6th $115,329

So now you've lived in your house for five years. The bank will make ~$3200 off of you in interest the following year.

>7th $90,426
>8th $64,823
>9th $38,501
>10th $11,440

And obviously the entire mortgage is paid off in the 10th year.

Imagine in ten years from now, you were able to sell a house for $400,000+ and literally put all of the money in your bank account. Are you currently able to save $40k per year and put it into your savings?

Also, these numbers just get scaled up the closer you live to a big city. You need to be approved to borrow more for the vacant lot is the only difference; the costs to build the actual house are comparable. It's the price of the land that is scaled way up, so you just have to borrow more to get started.
Protip: Don't live in the fucking city if you aren't making mad dosh already

So, to round this all up, the bank lent you $230,000 with the intent of you taking 30 fucking years to pay it off. This amounts to them raping you in interest because you took so damn long to pay it. You end up paying them back twice as much, that's why banks love giving out mortgages; people are fucking stupid and don't realize how important extra payments are.

You paid the entire thing off in 10 years, and you were under zero pressure the entire time because, if something were to happen in that time and you were in need of money, your mortgage for that month was already paid regardless. You don't even have to be frugal with your savings, this is assuming that you're holding yourself obligated to pay for your own mortgage and that's IT.

Now, you own a house that costed $230,000 to build.
The bank made ~$34,480 in interest.
You own a house that can be sold for $350,000+ easily, more if you are smart about the design, placement on the lot, etc and now you are making $1200/mth right into your pocket if you don't want to kick your tenants out and take the basement back for yourself. If you want to kick them out as soon as the house is paid off, you've got a finished apartment to put your kids bedrooms, playrooms etc in.
You do plan on having kids, right? Or have you given up on that, too?

You borrowed money from the bank... and you made a lot more money with it than the bank did, as well as got yourself a new house to live in, and worry-free mortgage payments for a decade. Oh, and you own a house in 10 years, and that's by holding yourself to the bare minimum of paying your own mortgage and having tenants. If you can save more than that, you could have it paid off faster.

You're telling basement dwelling NEETS to rent out the basement?

> you have to live with degenerate strangers in basement

Anyone engaging in kike usury schemes and making banks richer must be executed along with kikes themselves for contributing to their anti-humanity plans. Kikes would have had literally zero power and most likely would have died out for now if not for greedy goyim untermenschen taking their loans.

Yeah try and do any of that in the UK and you will be cucked out of all your money for the rest of your and your wife's sons life.

sounds like a lot of fucking work for a whole bunch of nothing. how about just picking up a gun and putting bullets in commies heads? that's more productive than this shit.

This just isn't possible in the UK property developers and the lack of space have it locked down. People think you are mad trying to self build, plus labour costs for work are insane.

why the fuck can't you buy a lot outside of the city and do the exact same thing in the UK? because you're giant pussies?

This.

Why not build a duplex instead?

In my opinion you have more privacy if you make a separate set of stairs into the basement and make them access the basement from the garage like I said

You have to make two bathrooms.

That increase the cost.

You have to make at least two bathrooms no matter what dude

I think you should have at least three

Three bathrooms?

Aren't those to many.

Most of the land you are able to buy for under the price of £100k is land which you will never be permitted to build on.

Not only that but in order to get planning permission you either need the money for a good lawyer or the breeding to have political connections. If you have either of those things, acquiring property isn't a problem anyway.

Your leaf and burger dreams don't work in the UK, there is a class divide here that prevents anyone without certain first and last names from getting anywhere.

What is it about the property that is preventing you from getting a building permit?

Well you'd want two in your house, wouldn't you? If you were building it from scratch? One off of the master bedroom and one out in the house for everyone to use.

And then you need one in the basement if you're going to rent it out.

I have three in my house, one for the master bedroom one for the other two rooms and one for the visits, but the one for the visits gets almost no use.

>when rocknrolla turned out to be a documentary.

>but the one for the visits gets almost no use.
so you're saying it might as well be in the basement eh

We usually don't built basements cause the house would collapse on them.

That's why i know that building a duplex it's more expensive.

>cause the house would collapse on them.
wat

Not sold on the privacy thing, and just as well, it's a harder sell to have garage access to a basement only vs. interior access from the home itself.

Personally, I'd recommend the duplex route so you can get enough rent asap to pay the full mortgage value, and you can double the payments each month if you feel like it. This way, the property is self-sustaining cost-wise even if you lost your income stream elsewhere.

two toilets is a practical requirement, because if your ONE and only toilet breaks, you're going to have to keep all toilet repair items on hand AT ALL TIMES and be damn quick about fixing any problems, because you really don't want to have to shit into a plastic bag.

You have way less privacy with a duplex though. How are you not buying that?

>not just shitting outside into a small hole you dug and burying it

Earthquakes they happen fairly often.

I understand two toilets but three it's typical capitalist excess.

numbers vary wildly between markets
this staregy worked for you, it will not work in every market. guaranteed.

however the laws around owning and renting property were written by the rich, for the rich. depreciation is huge. interest writeoffs are huge.

source: multi-family slum lord owner

>duplex
>separate entrance/exit above ground outside garage
>only share interior wall or floor/ceiling, never see tenant unless you're both coming/going at the same time
>can add additional soundproofing at reasonable cost during buildout to add to privacy
>can get far more in rent for 2-3 bedroom rental than basement space

If you use quality materials, you can build a duplex where one side can be throwing a big party while the other never hears a thing. Why is this "less privacy"?

>this staregy worked for you, it will not work in every market. guaranteed.

Houses cost less to build than they can sell for in every market. guaranteed.

otherwise houses would never be built in certain areas and houses are constantly being built everywhere

What do I do if I make 700usd per month?

Hey OP, I live in BC....

Whereabouts in this province do you figure has some good land to grow food on and set up a homestead, somewhere where I can raise a family but won't kill me paying for it.

pic related is what I wish to have one day, feels like it's so far away.

I don't think you know what you're talking about. Duplexes fucking suck and most people accept that as a fact. It's half of a godamn house and you share an interior wall with your tenants, how on earth you could possibly argue that that is better than putting them in the basement where you will literally never hear them, especially if you follow my advice and plan carefully, is beyond me.

I also like how you failed to mention that if you decide to stay there YOU LIVE IN A FUCKING DUPLEX INSTEAD OF A HOUSE

So does this only apply for Canadians or Americans? What country is this actually for?

go to realtor.ca and search for vacant lots that are far enough away from a city that you can afford one. I guarantee you'll be like holy shit they aren't that bad

get a full time job?

How often does a toilet break? Literally never.

It works literally everywhere.

Well, I shouldn't say that, because I'm not positive that it's possible to get builder's mortgages in other countries, but I know for a fact you can in Canada/USA/most of Europe

It is 12 hour job. Although I have a house a villa and an apartment. But still...

So how much do you really make per month? And why did you tell a lie on the internet?

Awesome. Was lo o ing at 3 properties in Reno nv, Montana, and alaska

A hose in my town costs like 10K. The apartment is with morgige and the villa is from my grandparents.

Or just buy a foreclosed property. Go to your court house and ask about properties that will go up for public auction. Sheriff sales are the county auctioning lots dirt cheap just so someone will pay some taxes on it.

check out landwatch and foreclosurelistings and definitely go see what properties your county is trying to get rid of.

What the fuck do you consider a duplex in Canada, dude?

Where I live, people have built duplexes that are 3000+ square feet per side, basically two full-sized homes together.

Some creep living in your basement under you can still make tons of noise, he's in your garage with your tools and shit, you're just trading one problem for another with your theory.

And again, with a duplex, you can make FAR more rental income, pay off the mortgage faster, sell it sooner and build a single-family, OR, keep renting it and have passive fucking income galore for years plus full equity.

You're missing some key things here, I'm afraid. Both cases have you living with strangers, but one provides more income potential.

that is all

That's Bulgaria dude, not hungary.

>if you think that property is too expensive to purchase, it's because it fucking is

>just buy a 50k lot
>then just apply for a 200k loan


are you retarded op? wait, your just a kike trying to trick gullable retards into taking out loans thinking they can game the system

>Both cases have you living with strangers, but one provides more income potential.

And in the other you live in a FUCKING DUPLEX

Well at least you can afford those kind of things. Property here would be 25 times the price, but the salary is not 25 times yours...

I would do this if I had a wife and was settling down. Right now I'd rather rent and just save up wealth.

I have been looking at building my own home on some land though. Something out of ICF construction.

This as well, but you'll be dealing with auctions unless you can contact the buyer during foreclosure and come to terms with taking over his mortgage prior to full foreclosure.

To quote an old friend of my Dad's, "buy dirt, nobody makes it anymore"

just looking at numbers made me feel queazy. thank fuck my family left me like 3 houses and I live in a no property tax country

depressing as shit

It doesn't matter how often it happens, if it does happen you don't want to have to shit into a plastic bag

Yeah, basement trolls paying far less than your mortgage amount are so much better.

Exactly my point.

whats a good price/acre

I have a 50k mortgage I bought a flat for and here's how it works for the mortgage-retards

I used to rent a flat. Cost me about $400 a month. That money is thrown into the shitter every month.

Now I took a mortgage and it will take me 10-15 years to repay it. At the end I have a pricy flat which probably will increase in value by then.

So essentially if you have a mortgage you are SAVING that money and renting a place you're wasting your money.

If something went wrong I can even rent this place out to people - and then it pays for itself.

The only thing that can fuck me is the happening and then we're all fucked anyway. You have to be stupid not to take a mortgage IF you can afford it.

There are 20 acre lots in Minnesota going to 20,000 USD. I think I will buy at least one outright. Good idea? Its far north and away from people. Good place to grow my own food and raise my faimly.

>Right now I'd rather rent and just save up wealth.
if lighting money on fire and watching it burn is your thing then go right ahead dude

And yeah, I made my foundation out of ICF. I would have done the entire house if I had a bit more dough.

Almost guaranteed your neighbourhood will be a complete shithole if you do this.

btw I make like 3K usd (freelance) but 700 usd is the national averidge.

I literally explained that the basement is easily rented out to cover the cost of your entire mortgage but you seem to have your heart set on living in a fucking DUPLEX so power to ya, brother

It depends on where it is dude there is no standard for the entire country

So why is houses in America so God damn expensive?

near ottawa

are*

Thats Chinese built dumbfuck

>Good place to grow my own food

Ha, you know that Minnesota's weather is pretty much the same as most of Canada's, right? There's snow for like five months a year.

But it's a beautiful state, that's probably where I'd pick if I wanted to live in the states.

They aren't, what are you on about my Hungarian friend?

Smart dude. Renting is retarded any way you slice it. It's lighting money on fire.

it's going to be fucking expensive near the city, go to realtor.ca and look yourself you lazy fuck

1) Green belts around most cities.
2) Planning permission is not easy.
3) Land with planning permission is very costly (~250 times that of agricultural land)

The pic is a comparison of green belts and some of the university cities in England.

>Hungarian?

is joke

>if lighting money on fire and watching it burn is your thing then go right ahead dude
It's because of my working situation. It pays well but it isn't permanent.

>feels like it's so far away.
in japan to be precise

you must be one of those new Canuck-dog hybrids.

Exactly when you are somewhere temporary it is fine. Because the amount of money you lose (taxes letting fees etc.) if you have to move on a mortgage would be detrimental. If you have a secure job in a place you want to stay then a mortgage is fine

...

I work for a bank and can confirm this is all good

My parents have about $30k saved up from a lawsuit they won against our home owners insurance.
I told them to buy a house that went for sale on our block but they were hesitant and it sold in a couple of weeks.
But now that I see OP's post, it sounds like his idea of buying empty lots and then selling houses sounds better than buying hoses to rent out.

Why are those darkies building walls with their dinner?

>literal double chinned neckneard

Where did you get a flat for 50k? Here new complexes dont go for less than 70k+ usd and I am talking one room with kitchen bathroom and bedroom.

burtalism a shit

>just rent it out to people!
>they'll totally live in your new house in the middle of nowhere!
>trust me guys, its easy!

Bumping for desperate home.
> £50,000
> half an acre.
If only.

Is the UK version of something like this renovation?

I'm all for this type of thing, but you've painted a fairly rosy picture of an investment that is alot of work. You've also completely ignored property tax and based the entire thing on building a house for $200k and being able to sell it for $400k. Even if you could find a company to build your house for that little, it's just as possible that you could spend $250k on a house that you might have to sell for $200k in the future.

But the idea of building a house and using it as an income property is a good one. What I think people get pissed about are the idiots that are struggling to pay off their $100k mortgage that they got 10 years ago and are convinced by the (((banks))) to "upgrade" and buy a new $400k house. So they sell their old house for $200k and pay off their mortgage and have $150k to put towards the new house. And where are they after all this? Sure they own a nice shiny new house that is most likely twice the size that they really need.... AND... they have a $250,000 mortgage now.

Now to the rental part of it. Renting property is really fucking annoying and difficult. You glossed over that little bit. If they aren't skipping out on you for rent, they are abusing and destroying your new building. All the costs for cleaning up after them and rebuilding all of the things they destroyed come right out of your "profit". Then there's the fact that even if you can't find renters, you still have to pay the mortgage. A couple of months without renters can put a real pinch on your cash flow. And even if you miraculously find good renters, you still have to put up with them. You are going to hear them coming and going, fighting, fucking, yelling at their kids or their dogs (they are going to have a dog and it IS going to shit in your yard).

But, if you buy the right property, get good renters, don't over pay, watch your expenses, and interest rates remain low, yes, this could be done. It's just as much work as anything else tho.

This plan is flawed as you can't account for the following variables:
>actual value of the home may be less than anticipated
>contractors can fuck up job, causing inconvenient to major infrastructural malfunctions
>setbacks in construction such as weather and natural disaster can delay and increase the cost
>loan amount may not be enough
It sounds nice on paper but realistically there's too much room for errors.

I agree. I think you would need to know a lot about building or you're gonna get fucked over by contractors. You are also gonna need to know a lot about home maintenance and repair so that you can maintain and repair your apartments when your tenants fuck them up.

Buying a home is a great idea though. You need a roof over your head. Might as well put that into home equity instead of pissing it away on rent.

So I have a family of 5.
What if we eat some bad food or get a tummy bug, and end up shitting and puking all the day long.
How does that work in Chile?

So this is Gods country then....
> Its nice.

save me OP where can I get more info on specific details of getting building plans etc. I'm self employed and i've worked construction in the past doing drywalling when I was a teen. Figured I could save some cash by doing some of the drywalling myself

There are no Indian food joints or kebab shops in Chile to give you diarrhea m8.

Dude, it is way better almost every single time. Building a house is cheaper than buying a house.

My property tax is 1% of the appraisal each year and I don't think there's any way you can get around it. You're paying the taxman one way or the other.

And getting good tenants is important, but I glossed over it a bit because it's obvious. It's best if you can rent to two female asian students, obviously. And a couple of months without rent shouldn't put a pinch on your cash flow because you're paying the same amount every month, dude. You hold yourself responsible for paying the cost of the mortgage each month specifically so that doesn't happen, so no, that won't happen.

You're right about not getting fucked over by contractors, but that's written into the agreement by your GC. That company is responsible for having the house completed for X dollars and it's the banks money. If they don't do exactly what they agreed to do, the fucking bank is after them for cash. I don't think you need to know "a lot" about building, the difference will just be that the GC will want $250k from the bank instead of $200k.

Honestly dude, if you're still drywalling, just pay more attention to specifically what the other trades are doing. Walk over and say you're curious about what they're doing and that you hate doing drywall, every trade hates doing drywall and most will be sympathetic. Do you do residential or commercial?

I agree, I read this thinking, GREAT! a new idea for owning a home, since I have to work a good 4 full time jobs to be able to but a house and pay it off in 10 years.
Then I see the flaws that basically EVERYTHNIG has to go perfectly without flaws, 100% tenants, no over runs on time or cost in construction, no screw ups that put you back, no paper work from a contractor or survey that is just going to fuck you over totally. (I do mean TOTALLY, they can basically say your house needs to be rebuilt from the ground up)
NO legal problems at all, since legal costs are high and legal battles take years.

I think this is a KIKE trying to fuck people over desu senpai.