Moving from renting to owning a home: What was that experience like for you? (real estate, apartment)

[James Brown]

I checked out some homes recently...and could not help but see the huge difference in cost with owning a home vs. apartment

now yes...i know the tax benefits of home ownership are great etc...and equity is great...but i find more people i know who are NEW homebuyers really cutting back when they buy a new home...they dont go out to eat...etc obviouly they have a bigger commitment.

Granted, one should get a home with a realistic affordable mortgage but often times the option/incentives/circumstannce may could that judgement.

So what has been your experience with that transition from an apartment/living with parents/renting a place...to owning your own? how did you adjust? what hidden cost caught you by surprise?

thx

[sunlover2007]

My husband and I bought a house about 2 years ago in SE Michigan. We are now thinking of moving to Arizona due to employment opportunities there. I wish we would have stayed renters the last 2 years but we really wanted to be home owners. Some things that you need to consider about buying a home is that the home will eventually be paid off and all you will have to pay are taxes. As a renter you don't have stability in the home. The owner may decide to sell the home at any time and then you would have to find another home in your price range. This happened to a friend of mine and then she had to move into an apartment. As a homeowner you are also free to do what you want with the home. You can paint, change the flooring, add a deck or do anything you want to your house. You can also find a mortgage where you'll pay almost the same as you would be paying to rent. We pay a little over a $1000 a month and this includes our taxes since they are escored. But we still have to pay for gas, water, electricity, any maintenance problems with the home etc. It is expensive to own a home but it is also very rewarding. There is nothing better in the world than having a home of your own.

[Bummer]

Definitely a shocker, James, especially at the initial signing!

Granted, the first year or so are a little tough but in the long haul, the pride of ownership alone makes it worth the effort.

As far as "cutting back" is concerned . . . think about it, were your friends negatively affected by a little self-discipline?

[chicagocarol]

IMO the most important factor is not going in over your head so that you end up 'house-poor'... meaning you are living to just make that mortgage payment each month. As you build equity over time, you can always sell and buy a bigger/better/more expensive home. Sit down and go over carefully what you think you can afford each month, and then add in the utilities that you don't pay now, the taxes, an emergency fund for unexpected expenses...cost of any decorating you may want to do,etc. It is very difficult, I think, when you purchase your first home to discipline yourself not to go into debt decorating & furnishing your first home. I don't believe you said if both of you work or not- also consider what would happen of suddenly one of you was unable to work. I am being the devil's advocate here, but I personally know too many young people who have gotten into deep trouble with things like 100% financing, ARM's,etc. Stay with in your means and good luck!

[Elmonellie]

Originally Posted by James Brown

Granted, one should get a home with a realistic affordable mortgage but often times the option/incentives/circumstannce may could that judgement.

So what has been your experience with that transition from an apartment/living with parents/renting a place...to owning your own? how did you adjust? what hidden cost caught you by surprise?

thx

That is 90% of the problem with the sub-prime market fiasco now. People did not get a house with a realistic mortgage.

I've always made a good return on investment in real estate, but I do it to not only live in it, but as an investment.

There is no comparison from living w/parents or in your own apartment. It is very, very expensive to keep up a home with a mortgage. (Ask your parents.) Nothing is really a hidden cost. If it's a new home, there will be less repairs. If you buy a shack in a million $$$ neighborhood...well, it's a shack and you will have to at least put a new roof on it or your stuff will get ruined.

Don't buy anything until you do a lot of homework. You can't walk away from debt as easily as you could 10 years ago.

[artyst]

there is no comparison to owning a home and renting!! the privacy alone makes owning worth the extra $. not to mention not hearing your neighbors upstairs or downstairs or through the wall! true you are responsible for all the things that can and will go wrong but hey what doesn't kill you makes you stronger. i've been a single mom for 15 years owning my home for 12 years and i've learned how to do plumbing, electrical, drywall and gardening not to mention dealing with service people and contractors and i wouldn't trade if for apartment living ever again!! it isn't that expensive if you stay within your means and decide that homeownership is a priority. but of course everyone has their own priorities.

[sierraAZ]

Originally Posted by James Brown

I checked out some homes recently...and could not help but see the huge difference in cost with owning a home vs. apartment

now yes...i know the tax benefits of home ownership are great etc...and equity is great...but i find more people i know who are NEW homebuyers really cutting back when they buy a new home...they dont go out to eat...etc obviouly they have a bigger commitment.

Granted, one should get a home with a realistic affordable mortgage but often times the option/incentives/circumstannce may could that judgement.

So what has been your experience with that transition from an apartment/living with parents/renting a place...to owning your own? how did you adjust? what hidden cost caught you by surprise?

thx

I've been back and forth between these living arrangements. I can tell ya that every trip to Home Depot is gonna make ya sick! If you fall for some elaborately landscaped yard, don't forget it takes a loooot of work, equipment, and knowledge, or a looot of money to maintain it in the same lovely state. Remember paying $100 for simple trimming of one tree.

With new construction you have no idea beforehand what the upgrades are gonna end up costing. Then after shelling out so much for the house, you'd want to make it nice. Rolling the cost of the upgrades into the mortgage is particularly tempting. Besides, you don't wanna move in and start ripping it apart almost immediately. You'll have to buy some of the appliances. The beautifully landscaped yards of the models look cool, but you'll get your yard on dirt unless you pay to have something done with it beforehand. I was gonna have that, but then changed my mind. The utilities are likely to cost more. Some of them might've been included in your rent. Pay very good attention to the HOA fees. Some condos/townhomes look reasonably priced at first sight, but the HOA fees are outrageous. It all adds up.

Oh, btw, if you go with a new house, be very careful which builder you choose. Some houses that look less expensive at first will end up being a lot more expensive than another builder's higher base price which includes many more perks. Some builders' bare-bones houses suck so badly that you'll have to spend another 50-60K to have a somewhat decent home.

Chances are good you WILL overextend yourself somewhat. Just make sure it's not way over your head.

[artyst]

listen to your heart and if you have half a brain, you'll do ok.

[sierraAZ]

Originally Posted by artyst

listen to your heart and if you have half a brain, you'll do ok.

Mmm... listening to the heart doesn't always yield the best results...if ever Granted, you did mention half brain.

[artyst]

actually it does because if you listen to your heart, you'll know what you ultimately want in life. then you have to use your head to make it happen very happy healthy successful girl here as a result!!