Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You and I are >>here<<. I bought my first house at 25 and have owned three houses in total (age 36 right now). I took a bath on the last one (think low-5 figures brought to the table) and it has soured me on ownership.
Now, in about 15-20 years, as I move into a different phase of life, having a fixed housing cost will likely be more appealing than the flexibility of renting. I don't want to enter the retirement years paying rent. At that point, we should be more stable in terms of our geographic location.
For right now, though, I can appreciate the freedom of renting. Heck, there are technicians right now at our rental house replacing the AC unit and all ductwork in the house. I looked at the bill and smiled that it wasn't me having to pay that!
Except... You paid that AND the owners profit.... Out of your rent!!!
(if you want to rent that's fine. It fits some situations, but let's be honest about it!)
I'm sitting on my 80 acres right now, after A decade of renting apartments and living in barics.
SO WORTH IT!!!
I think buying right is important... So rent until its right.
In 30 years I'll not be paying rent... But it's more the freedom.... Totally worth it.
In this day and age, do you think it is beneficial to own property whether it's a house or condo? I have always rented an am in no position to buy property, but I'm just thinking about the property. Does it feel good knowing that you actually own something valuable? Or is it more of a hassle than anything? I know that you have to extra money for taxes, insurance and repairs. Is it worth it?
Depends on an individual situation. Depends on the type of property. I've no desire to own a condo or townhouse. I happen to own a paid for house. In my opinion only, owning a house is owing a money pit. You have to enjoy the place immensely to make it emotionally worth it. Financially, I personally do not think it is a winner in the long run and especially not in the context of today's economics. Owning can lock you into a location when you most need to relocate. Property value can go down easily. You wind up living in a neighborhood in decline and you are stuck with a pig. You can have a nice property while your neighbor paints his house lime green or has a menagerie of barking dogs or worse, a teenage son who thinks he is the next Neil Schon. There are pros and cons. The rent pro is a larger degree of flexibility when your circumstances change. If you have little need for flexibility, then owning might be the better choice. It ALL boils down ultimately to finances.
Personally, I don't think real estate is a good investment.
I've bought and sold 3 houses so far and barely broke even on all three of them (economically depressed locations). Property taxes and utilities were high in the north. When I consider the time and money spent on maintaining those houses, there is no way we did not lose money on those transactions.
Since I bought my current home in 2011 I have kept more careful track of my expenses, so I'll be in a better position to know just how much this house cost me. I know I could not have rented in this neighborhood for less than my mortgage payment. Rents are high here, so I hope to some day move out and rent this place out. I really hope to have a capital gain when I sell it!
But IMHO home ownership is overrated. The responsibility is a real drag, especially for a single parent. Feeling good about 'owning something'? Doesn't factor in for me. Feeling depressed about all the work that needs to be done that I have to pay someone to do is more like it. And a lack of time and money to do other things I would rather be doing.
There is an old saying: You don't own a house. The house owns you.
My rule , never buy a home because its cheap, unless it's in a prime , resort area. What ever homes around you are out of your control. The real estate market is based on comps. Other homes in your area can drag down the value of yours. After you have spent a bundle up dating , your house is not worth what you have in it. Buy low , sell high , but in an area where people have cash to spend.
if you have the money to buy property yes, banks dont often give out loans for property alone, many banks just think youd buy it outright.
in some cities you can get land lots for as cheap as 1 dollar, it all depends what you plan to do with the property.
Banks do not loan money on bare land ( property) because it has no value. Put a house on the land and all of a sudden the property has great value, not the house , but the properly, cause a house has no value without the land (property). Sort of strange , but that's how the banks look at it. Most raw land is sold on a land contract by the owner, and you can not get a mortage or a construction loan until the land contract is paid up in full.
In this day and age, do you think it is beneficial to own property whether it's a house or condo? I have always rented an am in no position to buy property, but I'm just thinking about the property. Does it feel good knowing that you actually own something valuable? Or is it more of a hassle than anything? I know that you have to extra money for taxes, insurance and repairs. Is it worth it?
I think it really comes down to your personal values and your personal situation more than anything.
The "my home is my castle" and "roots" people will say home ownership is better financially, some no matter what the cost.
The people who prefer the flexibility of renting will say renting is better in a world where 30 year mortgages are a ball and chain because stable employment is a thing of the past.
I will say the biggest problem renters have is commitment. It's ok to not commit to buying a house. But renters have a way of not committing to retirement savings, either, which is why they usually have much lower net worths than homeowners.
But IMHO home ownership is overrated. The responsibility is a real drag, especially for a single parent. Feeling good about 'owning something'? Doesn't factor in for me. Feeling depressed about all the work that needs to be done that I have to pay someone to do is more like it. And a lack of time and money to do other things I would rather be doing.
There is an old saying: You don't own a house. The house owns you.
This is how I feel about it. But once again, it goes back to personal values and whether or not you are willing and/or able to fix stuff on your own. Some people might be able to learn maintenance but still hate it. I'm one of those people. I would rather live in a small place and call the landlord when something breaks. Renting a small place also keeps the utility bills low.
Other people will say all the work you have to do on a house is worth it, and that may be true...for them. But that would never be true for me.
One thing is for sure, though. You shouldn't view the house you live in as an investment. It might eventually put money in your pocket, but I don't think that's a good motivation for buying a house.
Where we are in nyc i have been saving roughly 12k a year by renting vs buying our place.. the money i would tie up in our place is generating more than the rent and it would still cost us about 1k a month more i to buy.
Where we are in nyc i have been saving roughly 12k a year by renting vs buying our place.. the money i would tie up in our place is generating more than the rent and it would still cost us about 1k a month more i to buy.
All that said , and I am sure its true for you.....there remains the thoughts many of us out there in the other world have when we watch our favorite TV reality shows , like " Selling New York " . Its just not like that in other places ! ( I spent one year in the Village long ago , so I know there is more than one side to the coin) , but Man , how do you all live that way day in and day out ? .
All that said , and I am sure its true for you.....there remains the thoughts many of us out there in the other world have when we watch our favorite TV reality shows , like " Selling New York " . Its just not like that in other places ! ( I spent one year in the Village long ago , so I know there is more than one side to the coin) , but Man , how do you all live that way day in and day out ? .
My rent is $2,000/month in Chicago, but to buy I would spend more than $2,000/month. The closest comparable condo is listed between $400K-$500K.
$400,000 @ 4% = $2387.Month
($400,000 * 1.5%)/12 = $500/month
Hoa fees = Let's assume at least $300/month
.................................................. ......................
$1187 more each month so I can say I "own". There are alot of reasons to buy, but the financials aren't usually a reason. Incidentally, I am looking to buy property, but not in Chicago and for other reasons than purely financial.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Let's assume at least $300/month
There are alot of reasons to buy, but the financials aren't usually a reason. Incidentally, I am looking to buy property, but not in Chicago and for other reasons than purely financial.
