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The whole concept of home ownership is delusional. As long as you have a mortgage, you do NOT own your home.
Belong to an HOA?-they have a stake in your house, too. Try missing an assessment and see how fast they take your house. Don't like HOAs? Try finding a house that's not part of one.
Even if you own your home outright, fail to pay taxes and see how fast your home is sold out from under you.
Home equity is illusive. You can believe that you have $100,000 equity all you want. Until you sell, you can't use it and it doesn't exist.
I've run the numbers on various "ownership" scenarios and it just doesn't make financial sense to own a house. I have owned for 20 years and it has been the biggest financial mistake of my life. I have the spreadsheets to prove it. No, I did not buy above my means, I do most, if not all, of my own maintenance, I had 20% down, had savings, etc.
Also, home maintenance is a never-ending. You can't defer it. Either you pay someone to do it, you do it (huge cost of your time), or you take the hit when you sell.
You just can't underestimate lost opportunity costs of owning. You also can't underestimate the flexibility renting provides.
A final thought: I do not know a single person who has actually paid off their home in 30 years. I know people who have paid cash for their house (so they have hundreds of thousands locked up in a house, go figure); but I do not know anyone who actually took out a mortgage and paid it off.
In California, it is much more common than it was for people to live in their homes long enough to pay them off. Prior to Prop 13 (1978) the property taxes would rise so fast, it frequently did not make sense to ride out your retirement in your home, now it very well may.
Also, if you look at interest rates from 1980 to now, they have done nothing but fall, so people have been refinancing even if they have stayed in their same house. Some have been taking money out of the house as they go but those that just refinance the balance have smaller and smaller balances. I know several people that are all paid off or close to it. To have a home paid off with a locked in and predictable property tax in California is a great way to spend retirement.
We bought a house that was FAR below "what we qualified for" two years ago. My Millennial realtor was shocked and dismayed that we would even consider it, since she knew we were qualified to buy more than double the house, so to speak.
It's nice, but it's nothing luxurious. It's just a pleasant house in a pleasant neighborhood. And yeah, since we bought so "little" house, we WILL pay it off fairly quickly. That's not bragging. My house is not a showcase. It's not an asset that screams "Wow, look at me, aren't I wonderful and aren't my owners rich?" Nope. In fact, I'll tell you what we paid for it - $193,000. It's 2500 square feet on a 1/2 acre lot, very comfortable, but it's not luxurious. It is also 20 years old. Great neighborhood of similar homes.
My Millennial realtor just built a new house. Now - she's a friend of mine and I know what she and her husband make. It's a nice living, but it's certainly no more than we make. Anyway - guess what her new house cost? $645,000. It's over 4000 square feet, for her and her husband and two kids. They'll be paying on that gargantuan home for 30 years and they better hope and pray that both of them can continue to bust their butts full time for those thirty years. And this house looks every bit of $645,000. Huge.
When I was their age, I bought a house too. That house was 1300 square feet. It cost $64,000. The irony is not lost on me.
Anyway, I hope they love that big, beautiful home because they're going to be stuck with it for awhile. It's way overpriced per square foot for the area. But hey, they've earned it I guess, with their ten years of working. Good for them!
Please. People are buying homes left and right. Banks are lending money. And it's at nowhere near 9 percent for a mortgage. Even with some shaky credit or next to nothing down.
It would be nice if there were 11 jobs for every ten workers. That would be nice. Heck even 95 jobs for every 100 workers would be nice. But there are a lot of people still on the sidelines looking in and saying I wish...
Well, maybe it's time to look into adding job skills or changing careers or relocating. I did all three over the course of my working years. Contrary to the constant drumbeat of the anti-education crowd, a high school diploma and rudimentary skills gets you crap. That means, at the very least, you've got to go to a reputable trade school or a community college at which you learn a portable, viable skill like welding or nursing or truck driving or HVAC. You also have to be dedicated to continuous learning about new and improved technology and products in your field. You might also consider taking business courses on the side so that you can open your own business -- and succeed.
If you go for an academic degree, then you have to include in your skills the ability to speak well in public, write well, think critically, problem solving. You have to do well enough in class that you stand out in the class and profs remember you. You need to join collegiate level professional societies/clubs. Hunt for internships. If you sit in the back of the class, don't show up half the time, and party hearty for four years, don't be surprised when you can't find a job in your field even if it's a STEM major.
I could settle for a small apartment for some time.
Right now i'm single.
So many people here have husbands
I was shocked to see many married couples.
Who has a husband? Not me ... and when I graduated from college, it was a whole lot harder for a woman to have any kind of career beside nurse or teacher than it is today.
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