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Renting fixes your cost per month. The A/C blows hot, the water heater dies, the roof leaks - not your problem.
A house can be a sucking pit swallowing much of your money, especially if you need to contract out most upkeep and repair work.
My landlord maintains the pool as well as the fitness center, saving us a gym membership.
You need to consider the service you receive as part of why you pay rent. It's not totally flushed.
I understand that, but I was responding to a specifc comment about how the 20% downpayment could be spent on rent instead, and that to compare the cost of owning vs. renting you should use 0% down loan figures. The downpayment money isn't "spent" when used to buy a house. That was really my point.
I understand that, but I was responding to a specifc comment about how the 20% downpayment could be spent on rent instead, and that to compare the cost of owning vs. renting you should use 0% down loan figures. The downpayment money isn't "spent" when used to buy a house. That was really my point.
I was initially responding to a comment which said you were paying someone else's mortgage while renting. That's not always true completely - in the case where the owner puts down money to buy a house, the landlord is paying part of the mortgage up front, so the renter is only paying for part of the cost of owning the house. It's a reasonable deal for the landlord since if the house doesn't drop in value they'll get that equity back, but it's also a good deal for the renter because they're paying below what it would cost to buy the same house.
Do you spend more than $100 a month in taxes, insurance and upkeep?
ETA - And keep in mind this comparison only works if you didn't put any money down. A 20% down payment on a 160K home will pay for quite a bit of rent, making the comparison fair only if you use the monthly payment on a 100% financing deal.
Actually when I compare rent amounts to total monthly mortgage payment I am including taxes and insurance in the mortgage payment. So it is a direct comparison in this case. And no, since I live in a newer home I do not have significant monthly upkeep expenses. Most of my new home upkeep involves elbow grease (like raking the leaves, washing windows ect...)
I agree with your take on the need to consider the down payment amount. However, ideally if I chose wisely in my decision on where to buy and at the very least in 5-10 years when I go to sell my $160K home as long as I see flat appreciation I will get the 20% down payment back when I sell. Sure I will spend 6% on realtor commission but I will still come out ahead than if I rented for those same 5-10 years since if I rented over those 5-10 years I would be guaranteed to see 0% return on the rent I paid. My mortgage payment is around $1,000 (including taxes and insurance) and from my experience renting a similar sized apartment in the same area would run about $1,000 as well. So essentially it would cost me just as much to rent as to own so the idea of investing the extra money some say I would have saved from renting does not really apply in my case.
Of course this scenario is specific to my situation. These are all things I considered before purchasing my home. For others in different locations or in different price points there may be additional factors to consider that may make renting a better choice. However in my situation there are more pros to owning than renting.
I think any person considering buying has to do this evaluation to decide for themselves.
Buyers are moving to this area because they have a new job. Thus, they must have a place to live. Buy a home or rent a home. Those are your options. You must have a HOME unless you plan to live out of your car or on the street.
Live in a house or live in an apartment...those are your options.
How can anyone live in this world and worry about EVERYTHING all day? What if this and what if that? Enjoy life. Consider YOUR life and YOUR options and make the choices that are good for YOU.
My agent just got back from a realtor seminar and she found that this area *triangle* is stable and will be doing ok in the months to come.
And in my area of Wake County the builders are not stopping.. its full speed ahead. I see sold signs left and right.
Yes, the triangle housing market is in fine shape. I am glad some people see that.
There are some people that will constantly post doom & gloom, for fun I guess, but the fact of the matter is that there are just select areas of the country that were way over inflated and they are coming back to earth now. This area never over inflated, therefore will not suffer to any degree. Yes, some houses may stay on the market longer in some areas, but not others. Yes, some people will lose their home because THEY signed and adjustable rate mortgage. No one put a gun to their head. They should have known better and now they will pay the price. However, the overwhelming majority of home owners will be just fine.
This is an unbelievable opportunity for buyers now and many people will buy over the coming months. These buyers will have their values increase over the years and end up with more money than they would have had if the were paying someone elses mortgage. And then some doom & gloomers will start posting that the sky is falling and these people are poor, even though their bank accounts are overflowing.
People, wake up and realize this opportunity. Pay attention to what most wealthy people have in common. THEY OWN REAL ESTATE. Do you want to listen to doom & gloomers or do you want to put yourself in a better financial position? Fear is a powerful instrument and doom & gloomers love it. The national media is a great case in point. Doom & gloom sells. They plaster it everywhere and people eat it up. People need to come out of their comas and realize what the doom & gloomers are doing to them.
Okay doom & gloomers............start posting again. Tear me apart with some twisted reverse math. Try to straighten me out. Try to explain to me how I ended up so much better off owning, when I could not get anywhere renting. I am sure you have some stock answer in your doom & gloom how to book.
Yes, the triangle housing market is in fine shape. I am glad some people see that.
There are some people that will constantly post doom & gloom, for fun I guess, but the fact of the matter is that there are just select areas of the country that were way over inflated and they are coming back to earth now. This area never over inflated, therefore will not suffer to any degree. Yes, some houses may stay on the market longer in some areas, but not others. Yes, some people will lose their home because THEY signed and adjustable rate mortgage. No one put a gun to their head. They should have known better and now they will pay the price. However, the overwhelming majority of home owners will be just fine.
This is an unbelievable opportunity for buyers now and many people will buy over the coming months. These buyers will have their values increase over the years and end up with more money than they would have had if the were paying someone elses mortgage. And then some doom & gloomers will start posting that the sky is falling and these people are poor, even though their bank accounts are overflowing.
People, wake up and realize this opportunity. Pay attention to what most wealthy people have in common. THEY OWN REAL ESTATE. Do you want to listen to doom & gloomers or do you want to put yourself in a better financial position? Fear is a powerful instrument and doom & gloomers love it. The national media is a great case in point. Doom & gloom sells. They plaster it everywhere and people eat it up. People need to come out of their comas and realize what the doom & gloomers are doing to them.
Okay doom & gloomers............start posting again. Tear me apart with some twisted reverse math. Try to straighten me out. Try to explain to me how I ended up so much better off owning, when I could not get anywhere renting. I am sure you have some stock answer in your doom & gloom how to book.
I'm a tenant advocate but absolutely respect your decision to do what works best for your personal situation.
Some folks do well buying. Others, such as us, with no aptitude for home repair would find owning to be a sucking pit swallowing up tons of our money every month.
I'm doing fine renting and it works for me. The money to buy a home for cash is in my credit union CD, and that's currently where it'll stay. I find the construction here to be mainly trash, so I'll rent and be able to move on when the place begins to spiral into junk.
Best to you. I don't bite even if we may disagree. Just ask VickiR.
Buying a house is not something that occurs in financial isolation. To many people do not look at the long term consequences and timing of buying with other major financial trigger points. Where in the course of a 30 year mortgage will your kids be entering college? In relation to your mortgage timeline when will you be retiring? Will you want the equity for either of those events? Will you be cash poor and unable to fund college and to retire when you want? Is it wise to buy a new house at 42 with a 30 year mortgage at 33% of your net and plan to retire at 62? Hmmmm you may need to work 10more years depending on appreciation which in a normal environment is closer to the historical levels. Buying a home is a major decision and unless you do it with your long time horizon in mind it may be a mistake. However it may be a boom if it is done as part of your big picture. However buying a home at 31 and paying it off at 61 and retiring at 62 may be priceless.
I'm a tenant advocate but absolutely respect your decision to do what works best for your personal situation.
Some folks do well buying. Others, such as us, with no aptitude for home repair would find owning to be a sucking pit swallowing up tons of our money every month.
I'm doing fine renting and it works for me. The money to buy a home for cash is in my credit union CD, and that's currently where it'll stay. I find the construction here to be mainly trash, so I'll rent and be able to move on when the place begins to spiral into junk.
Best to you. I don't bite even if we may disagree. Just ask VickiR.
saturnfan, I agree that folks need to do what works for them.
I only disagree or have a difference of opinion on some items.
1) I do not think that homes suck up "tons of money every month" in repairs. If you buy new there is a warranty. If you buy a condo or townhome, there are limited items to go wrong. Honestly, I have hardly ever had to repair anything in all my years of ownership. Now if you buy an older home, that is a different story. The movie, "The Money Pit" comes to mind on that.
2) I have CD's as well as my home. I just got another one yesterday. Man, I wish I locked up all of them longer term, as the rates are crashing on them. The regular banks are down to less than 3%, but the credit unions are a "little" higher.
3) It's funny how you think the homes here are trash. I moved here from NE and find the homes here are better built. I am sure, as with any area, some builders may not be the best, but most I have found to do a great job. Back north, you get just the basics. I find that in the south, the homes, including new, have much more detail and higher ends items than back north. For over 2 straight years we have checked out homes trying to educate ourselves. I have seen a lot and I have been very impressed.
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