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Not at $1,300 a month once you factor in repairs. You're not losing money renting under those circumstances...
You can kiss that $1300 goodbye at the end of the month. There is no apt to sell down the road or interest to deduct by renting. I also don't have to worry about the landlord increasing my rent or kicking me out for whatever reason when the lease is up. I have piece of mind with a place that i own and live in from those uncertainties.
You can kiss that $1300 goodbye at the end of the month. There is no apt to sell down the road or interest to deduct by renting. I also don't have to worry about the landlord increasing my rent or kicking me out for whatever reason when the lease is up. I have piece of mind with a place that i own and live in from those uncertainties.
Generally agree, but tax increases are more or less like rent increases.
My understanding is that when you add livable square footage (finish a basement) or add bedrooms or bathrooms, it will increase property taxes. Plain home improvements do not.
The thing is you build zero equity by renting. Dont forget the tax advantages of home ownership. There is a good likelihood you can make some change by owning and selling it over the long term to offset these homeowner costs.
When you factor in all the fees associated with acquiring the home plus mortgage interest you've paid after all is said and done, you'll be lucky to break even once you do sell.
The biggest benefit of owning your own home is the security of knowing that the landlord can't sell resulting in you having to move or paying a significant increase in rent. From a monetary/investment standpoint its hit or miss though. Fortunately for me I have a long term lease with no increases. The day that I do decide to leave, I have a nice nest egg to be able to do so from all the money i've been able to save given my affordable rent.
When you factor in all the fees associated with acquiring the home plus mortgage interest you've paid after all is said and done, you'll be lucky to break even once you do sell.
The biggest benefit of owning your own home is the security of knowing that the landlord can't sell resulting in you having to move or paying a significant increase in rent. From a monetary/investment standpoint its hit or miss though. Fortunately for me I have a long term lease with no increases. The day that I do decide to leave, I have a nice nest egg to be able to do so from all the money i've been able to save given my affordable rent.
Breaking even is still better than paying rent where you have zero chance of recouping those expenses back. It's 100% down the toilet. The wealthy don't rent, they buy and sell real estate.
Breaking even is still better than paying rent where you have zero chance of recouping those expenses back. It's 100% down the toilet. The wealthy don't rent, they buy and sell real estate.
True, given that you're even to break even. I know people who have made money, lost lots of money and some who have broken even.
When you factor in all the fees associated with acquiring the home plus mortgage interest you've paid after all is said and done, you'll be lucky to break even once you do sell.
The biggest benefit of owning your own home is the security of knowing that the landlord can't sell resulting in you having to move or paying a significant increase in rent. From a monetary/investment standpoint its hit or miss though. Fortunately for me I have a long term lease with no increases. The day that I do decide to leave, I have a nice nest egg to be able to do so from all the money i've been able to save given my affordable rent.
Quote:
Originally Posted by louie0406
True, given that you're even to break even. I know people who have made money, lost lots of money and some who have broken even.
And you can also more likely lose money by investing in stocks or a business or leaving it in a savings (due to 2.9% inflation) account. Most people won't tell you that. It's like those who win in a casino or lotto, they'll tell you how much they won but not how much they lost before the win. If you have the money for a house, putting it into a home you live isn't so bad given your other alternatives. This is LI, not Florida or Arizona, I don't see home prices falling that much if at all in the next 10-20 years.
And you can also more likely lose money by investing in stocks or a business or leaving it in a savings (due to 2.9% inflation) account. Most people won't tell you that. It's like those who win in a casino or lotto, they'll tell you how much they won but not how much they lost before the win. If you have the money for a house, putting it into a home you live isn't so bad given your other alternatives. This is LI, not Florida or Arizona, I don't see home prices falling that much if at all in the next 10-20 years.
There's also sad situations like what my elderly neighbors are going through. They've owned their home for over 25yrs and are both retired. They are now being forced to sell and move with family down south because they can no longer afford their property taxes given they are on a fixed income. It's one thing to own a home while you're younger and able to earn money to be able to afford rises in taxes or to come out of pocket for repair costs. Its another to be in their shoes where they are both living on a fixed income and have these expenses come up.
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