Should Somalis in the Diaspora be mortgaging homes?

[hamar_oo_iidil]

I really do not want my children to suffer from a lack of inheritance as well as the security of a home that they own outright. My parents rented their whole lives and often tell me about how cheap homes were when they came to the diaspora compared to now. It seems like we've missed a massive opportunity in the past 20 years to buy property in the diaspora and now most Somalis 2nd generation are dealing with rising rent prices and home ownership seems all the more impossible. If house prices continue to rise and Somalis remain renting, we will eventually be in a very difficult situation financially. And potentially be driven into homelessness. I do believe part of young Somalis not marrying is because of the lack of homeownership. A lot of young divorcees talk about how the lack of a home resulted in them divorcing. How can we encourage more young Somalis to get on the housing ladder?

 

[Chase]

Somalis already are taking mortgages, well at least the ones in Australia. Actually, we were kinda late to get on board, the Lebanese, Iraqis, Turks, etc. had a decade start on us.

 

[Aurelian]

If somalis started buying houses when they came or even after a decade after they came, they would have already payed all the mortage by now

 

[Hmohamed54]

They rather spemd 3k a month on a small apartment for decades. I’m planning on buying a house and raise 15+ children InShaAllah.

 

[repo]

If Somalis want to create generational wealth, then yes but as Muslims may Allah forgive us if we do it.

 

[Bebsi]

Akhirah over dunya.

 

[NordicSomali]

If somalis started buying houses when they came or even after a decade after they came, they would have already payed all the mortage by now

so true, and their children will suffer because of it unfortunately

 

[Manafesto]

I really do not want my children to suffer from a lack of inheritance as well as the security of a home that they own outright. My parents rented their whole lives and often tell me about how cheap homes were when they came to the diaspora compared to now. It seems like we've missed a massive opportunity in the past 20 years to buy property in the diaspora and now most Somalis 2nd generation are dealing with rising rent prices and home ownership seems all the more impossible. If house prices continue to rise and Somalis remain renting, we will eventually be in a very difficult situation financially. And potentially be driven into homelessness. I do believe part of young Somalis not marrying is because of the lack of homeownership. A lot of young divorcees talk about how the lack of a home resulted in them divorcing. How can we encourage more young Somalis to get on the housing ladder?

Bro, the biggest problem of our Somali people is that they like to stick around and live in major towns with large Somali community, I don't see it as a big deal too, it is a human nature.

However,when these metropolitan towns are highly expensive as hell Mpls-Stpl,Seattle,San Diego, Boston,Chicago and many others, they are prime real estate towns and super expensive, hence why Somalis suffer in those town and don't have much properties even after all these years.

Only Columbus,Ohio is the only Somali inhabited towns across the states,some don't see this clear pattern of Somali northern American settlements pattern such is they also pick the worst of the states,for example they would never settle states like Texas for example.

The state has a cheap real estate(Mansions for 800$/months) and great job market, problem is Texas don't mess around with the law and they throw the book at you, so they move to gaajo and Washington expensive towns where demoractic run those regions and show mercy to their troubled silk siblings.stats like Ohio,MN,Georgia and Washington are trash and is only good for truck driver only, other wise you will in an apartment.

To sum up my post is that states like NM,Colorado and sometimes Texas give you few acres of land to farm and startup fund of 8k in loans, if Somalis wanted a couple acres of a land and a ranch house with it own well and sun solored electricity setting then they would do this.

....But again they would rather live in an apartment and eat Hilib bariis at Somali restaurant and doing FKD in the mean time,I used to be the same now and switching my FKD addiction to e-onlind instead.

 

[AbdiFreedom]

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[Indeed]

Mortgage is not for us Muslims, our house is in junnah, not in this Dunyaa. The only option is move to a cheap city to purchase a home or get a council house etc

 

[Sheikh Google]

I've had this convo many a times on SS and I'll always repeat the facts. A qaxooti that has come to the west right now is on the same rungs of the ladder as us Somali in society and we have been here since the early 90s. Timo Jilec and other diaspora have such a head start and leg up on us it's a joke. Now our youth are suffering because we raising 2nd or even 3rd generation diasporas in the same hellhole ghetto's and wonder why our children or children's children succumb to gangs/drugs etc... We should've been kicking it in the suburbs by now but no we still stuck in the ghettos with the madows and recent qaxootis. Wallahi sometimes I think our people are cursed...

 

[The Somali Caesar]

We need real estate to build equity and get out of the 9-5 rat race. Mortgaging a house when you're on a 9-5 job is silly

 

[Ras]

We need real estate to build equity and get out of the 9-5 rat race. Mortgaging a house when you're on a 9-5 job is silly

As long as it's within your means. We tend to have large families. Could easily get 2-3 adults paying in $400/month each.

That would be enough for a decent sized 320k house outside the major cities.

The younger generation could start sharing the burden at 20 and by 30 they'd have 150-180k in equity they could use as a down payment on their own houses.

300k house only need 60k as a down payment and just 10k under FHA.

By the 3rd generation you'd have a million dollars plus in family net worth.




That's how you build generational wealth.

 

[The Somali Caesar]

As long as it's within your means. We tend to have large families. Could easily get 2-3 adults paying in $400/month each.

That would be enough for a decent sized 320k house outside the major cities.

The younger generation could start sharing the burden at 20 and by 30 they'd have 150-180k in equity they could use as a down payment on their own houses.

300k house only need 60k as a down payment and just 10k under FHA.

By the 3rd generation you'd have a million dollars plus in family net worth.




That's how you build generational wealth.

I think Somalis should live in rented home. Build up their credit score. Which will help them get loans to buy mid range properties that will only appreciate in value over time. Get tenants paying on the monthly that will generate passive income.That's what'll cause generational wealth just ask the Jews/Italians/Irish etc. But that's just my input

 

[maajid20]

I heard from shiekh that if it’s for the safety and well being of your family it should be fine. The only good or even decent apartment snowdays are priced at 3k+ a month.

 

[Ras]

I think Somalis should live in rented home. Build up their credit score. Which will help them get loans to buy mid range properties that will only appreciate in value over time. Get tenants paying on the monthly that will generate passive income.That's what'll cause generational wealth just ask the Jews/Italians/Irish etc. But that's just my input

Would agree if this was 2010. Now families could barely afford to pay for their own roof.

Instead wasting 10 years saving up cash and getting a good credit score - buy a cheaper house as your primary residence and build up equity.

After 10 years a 1.5% annual real estate values appreciation, a mid range 500k house would cost 580k and require a 116k down payment. Not to mention if you paid 1k in rent that's 120k gone... The goal post is moving away from you.

If you invested 60k on a down payment in a fixxer upper you would've built up 80k-130k in equity in 10 years which you could use to buy that mid range investment property.

If you're starting from zero ... don't waste your time saving until you can buy big - start small and build up equity along the way.

 

[Kramer]

people been getting mortgages lol

 

[hamar_oo_iidil]

Bro, the biggest problem of our Somali people is that they like to stick around and live in major towns with large Somali community, I don't see it as a big deal too, it is a human nature.

However,when these metropolitan towns are highly expensive as hell Mpls-Stpl,Seattle,San Diego, Boston,Chicago and many others, they are prime real estate towns and super expensive, hence why Somalis suffer in those town and don't have much properties even after all these years.

Only Columbus,Ohio is the only Somali inhabited towns across the states,some don't see this clear pattern of Somali northern American settlements pattern such is they also pick the worst of the states,for example they would never settle states like Texas for example.

The state has a cheap real estate(Mansions for 800$/months) and great job market, problem is Texas don't mess around with the law and they throw the book at you, so they move to gaajo and Washington expensive towns where demoractic run those regions and show mercy to their troubled silk siblings.stats like Ohio,MN,Georgia and Washington are trash and is only good for truck driver only, other wise you will in an apartment.

To sum up my post is that states like NM,Colorado and sometimes Texas give you few acres of land to farm and startup fund of 8k in loans, if Somalis wanted a couple acres of a land and a ranch house with it own well and sun solored electricity setting then they would do this.

....But again they would rather live in an apartment and eat Hilib bariis at Somali restaurant and doing FKD in the mean time,I used to be the same now and switching my FKD addiction to e-onlind instead.

I really do believe as Somalis in the diaspora owning real estate is so essential without it we loose out on our ajnabi counterparts who are gaining wealth year-on-year. Also I agree inner city homes is extremely expensive. Why not have Somalis migrate out of the inner-cities into rural country to buy larger plots of land and farms and have like Somali diaspora rural towns/villages in the diaspora. Or in inner-cities for those of us who can't move out. Why not have housing cooperatives of Somalis? Things like multi-family residential mortgages and housing cooperatives

 

[unknowntraveller]

First and foremost, mortgages involve interest, and it is forbidden to receive and pay interest. Thus all somalis should abstain from it.

Secondly, a rise in the interest rates by the banks, or a defaulted mortgage payment means that all of a sudden, you are looking at your house being repossessed by the bank. When the (inevitable) recession hits, interest rates will rise, people will be unable to pay mortgages, and many people will go homeless. Just like in 2008 and 1929. And the recession is forecasted to happen in 2023. Not worth it, buy a house using cash.

 

[maajid20]

First and foremost, mortgages involve interest, and it is forbidden to receive and pay interest. Thus all somalis should abstain from it.

Secondly, a rise in the interest rates by the banks, or a defaulted mortgage payment means that all of a sudden, you are looking at your house being repossessed by the bank. When the (inevitable) recession hits, interest rates will rise, people will be unable to pay mortgages, and many people will go homeless. Just like in 2008 and 1929. And the recession is forecasted to happen in 2023. Not worth it, buy a house using cash.

You’re missing the point. No one has enough money to purchase a house .