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I have come to the realization that I will never reasonably afford a decent home, unless circumstances change in my life (i.e. marriage, pay raises, decreased home values, inheritance, etc.). I am now 32 years old, single and earn an annual salary of $70K here in the Hartford, CT area. Around here, $70K is just average.
I just refuse to purchase something that's going to make me house poor, with high monthly payments, high maintenance costs, etc. It's just too much for a single person to bear, here in Connecticut. But I want to stay in Connecticut because I like it here and my family is here and I'm native to CT.
I am realizing all the benefits of renting. I can live a debt free lifestyle with a big amount of liquid cash in the bank (although not enough to make a down payment on a home around here). I don't have to worry about any maintenance hassle or costs. And I can leave on vacation without worrying about anything. I also have been moving a lot in my life, and have never lived in one apartment for more than 2 years.
Also, in many cases, renting allows me to have a wider choice of neighborhoods to live in, often desirable neighborhoods where real estate would simply be too expensive. And I don't have to pay any property taxes. I know technically the taxes are included in the rent, but hell, I'd rather pay $1,010 a month in rent (with heat included) than $1,400+ in a mortgage plus property taxes. Here in CT, typical property taxes are $5,000 per year for an average home. That's $417 a month!
I just feel like renting is more suitable for a single person with no children who works full time, moves very often and likes to travel often. To me, traveling the country/world is more important than owning a property, since I believe life is more about experiences than material.
From a financial perspective, honestly, I don't see how owning is really any better than renting. The first 10-15 years of a 30-year mortgage is mostly interest expense, which is throwing money out the window! That, in addition to very high CT property taxes and insurance. Again...all throwing money out the window anyway. And it gets even worse when you have thousands of dollars a year in repairs, maintenance and upgrades!
I am so happy as a renter now and I have no shame in doing it well into adulthood. Does anyone else feel the same way?
I have come to the realization that I will never reasonably afford a decent home, unless circumstances change in my life (i.e. marriage, pay raises, decreased home values, inheritance, etc.). I am now 32 years old, single and earn an annual salary of $70K here in the Hartford, CT area. Around here, $70K is just average.
I just refuse to purchase something that's going to make me house poor, with high monthly payments, high maintenance costs, etc. It's just too much for a single person to bear, here in Connecticut. But I want to stay in Connecticut because I like it here and my family is here and I'm native to CT.
I am realizing all the benefits of renting. I can live a debt free lifestyle with a big amount of liquid cash in the bank (although not enough to make a down payment on a home around here). I don't have to worry about any maintenance hassle or costs. And I can leave on vacation without worrying about anything. I also have been moving a lot in my life, and have never lived in one apartment for more than 2 years.
Also, in many cases, renting allows me to have a wider choice of neighborhoods to live in, often desirable neighborhoods where real estate would simply be too expensive. And I don't have to pay any property taxes. I know technically the taxes are included in the rent, but hell, I'd rather pay $1,010 a month in rent (with heat included) than $1,400+ in a mortgage plus property taxes. Here in CT, typical property taxes are $5,000 per year for an average home. That's $417 a month!
I just feel like renting is more suitable for a single person with no children who works full time, moves very often and likes to travel often. To me, traveling the country/world is more important than owning a property, since I believe life is more about experiences than material.
From a financial perspective, honestly, I don't see how owning is really any better than renting. The first 10-15 years of a 30-year mortgage is mostly interest expense, which is throwing money out the window! That, in addition to very high CT property taxes and insurance. Again...all throwing money out the window anyway. And it gets even worse when you have thousands of dollars a year in repairs, maintenance and upgrades!
I am so happy as a renter now and I have no shame in doing it well into adulthood. Does anyone else feel the same way?
Nothing wrong with that, just be sure you keep saving your money so that if you change your mind in the future the option will be open to you. I'm happy renting for now as well, though some day I want to buy. I definitely see major advantages to renting even leaving aside the money considerations, such as having weekends available for social activities as opposed to dealing with repairs, cleaning gutters, termite inspections, A/C maintenance, and mowing the lawn. But some day, especially if and when I have a family of my own, I will want to put roots down.
I saved a freaking TON of money renting. I moved when I wanted and lived all over the place.
I also save money owning as well. My mortgage, condo fee, and taxes are less than I paid when renting. Key is to wait and grab yourself a deal.
I've been here for a number of years and only maintenance I've had was frig repair... that was $400 and not "thousands". Place is new so I don't need to upgrade for many years. My point is, live your life but don't discount the other side since there is money to be made here as well! And don't forget the IRS taxes. And not to mention less stress of moving every couple of years - that gets tiring after a while. And always waiting on those yearly increases in rent....
But I could easily go back to renting, if needed. I enjoyed renting...
It's funny, because people talk about how much work is involved with owning a home and what a huge responsibility it is. However, as a renter, I think renting an apartment can be a lot of work, too. There's just a lot of time consuming chores that need to be done such as cleaning, cooking, laundry, and even occasional "mild" maintenance. And other things in life that take up time, such as working, shopping, exercising, etc.
Anyway, yes, of course I will continue saving up money. You never know, if in the future, I may be interested or in a financial position to purchase a home. But I am sick and tired of society and family and friends pressuring me into buying a home and the stigma that I'm "not making it in life" by renting all these years. All of my friends around my age who purchased homes are NOT really financially well off, if you ask me. They have a lot of debt, very little liquid cash, no emergency reserves, and cannot really save enough money aside each month. Seriously....where is the joy in that?! I'm not saying they shouldn't be homeowners, but I'm saying that many of them jumped the gun, just so they can call themselves a homeowner. Well I REFUSE to do that. In my opinion, if someone has to raid their emergency fund and barely save any money each month, then they CANNOT afford the home!
So, Nep. You managed to get a job in Hartford and move from Ohio? Good for you.
As far as renting vs. owning: You're right, no reason to own at this stage in your life. There are a ton of added costs that come with owning, believe me! I've had plumbing nightmares and have replaced my HVAC in the past 18 mos, and I live in a townhouse, a SFH would be more. Additionally, I would guess you're like me and don't want to spend your personal time doing yard maintenance.
In any case, enjoy your life in Hartford, I know that you have wanted to move back there for a long time. Maybe someday you'll buy, maybe someday you won't. But at least you are living in the place you want to be.
It's funny, because people talk about how much work is involved with owning a home and what a huge responsibility it is. However, as a renter, I think renting an apartment can be a lot of work, too. There's just a lot of time consuming chores that need to be done such as cleaning, cooking, laundry, and even occasional "mild" maintenance. And other things in life that take up time, such as working, shopping, exercising, etc.
Anyway, yes, of course I will continue saving up money. You never know, if in the future, I may be interested or in a financial position to purchase a home. But I am sick and tired of society and family and friends pressuring me into buying a home and the stigma that I'm "not making it in life" by renting all these years. All of my friends around my age who purchased homes are NOT really financially well off, if you ask me. They have a lot of debt, very little liquid cash, no emergency reserves, and cannot really save enough money aside each month. Seriously....where is the joy in that?! I'm not saying they shouldn't be homeowners, but I'm saying that many of them jumped the gun, just so they can call themselves a homeowner. Well I REFUSE to do that. In my opinion, if someone has to raid their emergency fund and barely save any money each month, then they CANNOT afford the home!
Oh, yea 10000000%%%%
I have friends who purchased and put themselves in a huge hole. It is crazy.
One guy talked to me like "why are you buying that?" He purchased this huge town house and can't do anything because it was $450k and he has to pay a maintenance fee higher than when he first purchased (like a condo fee, not sure how much it is). He does have three bedrooms, I have 1 bedroom with sun room (can convert to bedroom on very temp basis)... my place is good size though.
My friend is now house poor and due to new developments, his place is not exploding in value. Matter of fact he is complaining of heating/cooling bills. My electric was $60 last month and that was high for this time of the year.
Co-worker took all of his savings out to purchase a house for only him and his wife. Darn place is HUGE. It is very impressive. I was like WOW. He told me he was ONLY going to be house poor for 10 or 15 years. He said he used all of his savings to buy the house and hopes it stays trouble free.
I fully own a condo, but I'm looking forward to renting again soon. This time it will be in a high rise which is something I've never experienced... that's one of the things I like about renting.. trying out something new!
I owned a house once and it's not something I would choose to do ever again. It's a personality/behavior thing... my husband is knowledge worker and he and I aren't the DIY types nor do we enjoy "tinkering" around. I do have a vegetable garden in the community garden patch and we enjoy hikes, and I do general house duties like cooking, cleaning and painting, but otherwise we are online ALL the time (watching movies, reading, playing games, social media, legitimate work).
I was a little hesitant to buy a condo/townhouse with a family because it does go against the mainstream "American dream" a bit, but it's truly the idea arrangement for us... in terms of ownership...
I don't think it matters if you buy or rent.. you're going to "pay" and keeping "paying" for housing one way or another.. either through direct or indirect ways. Our mortgage was paid off, but we now have a new special assessment on top of our HOA dues for repainting. It never stops. In another few years it'll be the roof and then the siding and then something else I'm sure...
Phew! All these posts make me feel even better to be a renter. Home ownership just sounds like an added headache that I don't really want to have.
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