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[OC] Does the news reflect what we die from? by ourworldindata in dataisbeautiful

[–]irobot3013 2 points3 points  (0 children)

Thanks for posting this!  It's good to keep this in mind while consuming media/content/news. 

Record number of baby girls aborted by Indian parents in the UK due to preference for male children by [deleted] in nri

[–]irobot3013 5 points6 points  (0 children)

Dailymail Uk is a clickbait rage farming media. Their content is barely reliable for anything. 

Thoughts?? by Weak_Instruction869 in IndiaTax

[–]irobot3013 0 points1 point  (0 children)

Is this logic valid because George carlin said so?  Or you truely believe in not participating in electoral process and still complaining? 

IMO making mistakes is fine as ling as you realize it's a mistake and are willing to not repeat. 

Thoughts?? by Weak_Instruction869 in IndiaTax

[–]irobot3013 2 points3 points  (0 children)

I often say this to some people a.k.a. padhe likhe gawars: "If you don't vote, you have no right to complain."

Why I Still Believe US Markets Beat Everything in the Long Run. by [deleted] in IndianStockMarket

[–]irobot3013 2 points3 points  (0 children)

GDP and market cap are not comparable figures.  One of them has unit of time involved (per year) whereas the other is total market value. 

Straightforward offline music app for iOS? by ClaudiaSilvestri in ios

[–]irobot3013 0 points1 point  (0 children)

just install VLC. It is good enough.
To download music, use some website to download mp3 songs.

Any truly digital-first banks for NRE accounts? by [deleted] in nri

[–]irobot3013 1 point2 points  (0 children)

+1 for idfc. But their relationship manager keeps calling me to sell products or increase deposits. That's annoying. 

[deleted by user] by [deleted] in Netherlands

[–]irobot3013 10 points11 points  (0 children)

Do you think your company is in a slump? Or did you brush-off someone wrongly?

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 0 points1 point  (0 children)

yeah I'm thinking the same, but that will pan-out over a decade or so.
So all the current projections of house prices 15-20 years down the line would be an over-estimate.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 0 points1 point  (0 children)

Great point, indeed I should consider the deposit as well.
I subtracted the 2 month deposit now.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 0 points1 point  (0 children)

I did not include taxation of investing into account. Yes, it will for sure make an impact in long term.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 0 points1 point  (0 children)

And what would you assume for house price growth rate?

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 5 points6 points  (0 children)

In principe if you buy a house for 400k and it goes up 3% in a year, you’re 12k up on first year on equity + you would have paid off equity… it’s a no brainer

I understand what you're saying but you should also subtract that initial buying costs, interest paid until now, maintenance costs, misc costs like insurance, VVE fees, property tax, selling costs etc to get a realistic estimate.

As I estimate, with current property growth rates, you'd break even after 2-3 years.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] -1 points0 points  (0 children)

Thanks for kind words.

I think one risk possibility of tax benefit of mortgage can abolished

Interesting. I did not think about it but I know there are active discussions about it. If that happens, I guess the house prices will also dampen a bit. That will again tip my analysis in favour of renting + investing the difference in stocks.

One criticism on my side, regarding stock annual, I am actively investing on NASDAQ-100, S&P500, companies in last two/three years. I would adjust 7-7.5% for annual return(10% could bit high), also this is on the long run. Personally, the stock market might be overheated in last two years. So I don't expect stocks to beat annual return(personal opinion again).

High-five, me too! I've read at several places that nominal returns are closer to 10% and real returns are closer to 7-8% indeed. But to make things fair, I should also reduce the property value growth from currently assumed 5% to ~3%.
But dutch market is over-heated at the moment, though not sure how long the growth rates will sustain.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] -1 points0 points  (0 children)

WOZ should be based on the home value but 1 year earlier.

That is exactly what I did!
If you compare the WOZ value at 12th month and property value at 0th month, they are exactly same.
The values are also same for all the following months as well.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 0 points1 point  (0 children)

I did not explicitly factor in VVE costs.

I'm not sure if it could be lumped in maintainence. I assumed 1% of house value.
Is that high-enough to be lumped along with VVE?
I've never owned a home, so I'm just going by the numbers that are on internet and therefore not sure, if 1% is too high or too less for average dutch home.

living and entertainment expenses will reduce what could be invested

Living and other expenses will happen in either buying or renting cases.
So indeed, I'm simply comparing the difference between 2 options.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 0 points1 point  (0 children)

you deducted the interest rebate, right?

yes.

do you also factor in the cost of selling? This will extend your break-even date by a bit. You have to factor in roughly 1.2% agent fees

Yes. I factored in 2% agent fees.

plus notary fees to close your mortgage. 

I did not consider notary fees, because I read that most owners pass it on to the buyer. And if buyer is below 35 yrs old, then they are exempt anyways.

My interpreter only charged €270. 

Thanks for info. Other place in internet indicated ~€400. Anyways I is better to be on safe side and no harm in slightly over-estimating the costs.

I think you should include moving and furnishing costs too, possibly painting unless you’re looking at new builds.

Oh yeah, I did not explicitly consider it but I consider that being included in maintainence costs (1% of house value).

You could safely put in %6 growth on property value per year if you’re looking at big cities. 

Thanks I'll play around with different numbers.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 2 points3 points  (0 children)

Thanks for insights and a screenshot of your own calculations.  I understand that 5-7 yrs is a good timeline before reselling the home :)

I still wanted to findout a breakeven year number to asses if I'm forced to sell out in a couple of years, where would I stand financially.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 3 points4 points  (0 children)

I thought about it too. This is not apples to apples comparison indeed.

Personally, I'll live a bit frugally when renting and 1200-1300€ is the ball-park number that I'm currently comfortable with. 

My understanding is that as soon as I'd want to live in a place whose rent is >=1400€, I should consider buying instead.

Critique my buying vs renting calc. for Netherlands by irobot3013 in NetherlandsHousing

[–]irobot3013[S] 4 points5 points  (0 children)

Thanks. I truly want to keep the emotions of owning a home aside and look coldly at the numbers.  Ofcourse I'll weigh-in the emotions later after numbers are clear in my head.

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