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BUT.... taxes and insurance continually increase,so what's the difference????
Building an average single-family home generates 2.97 jobs.
You can usually own a better home for less (monthly), than an apartment.
And the savings decrease the longer you stay in the home, while they would increases if you continued to rent.
And in cases where rent is less than a mortgage payment, you must consider what you are paying for. Are you comfortable living in 800sqft or less, or do you value 1500+sq feet?
Property taxes and interest are deductible.
You're building equity, your money isnt just disappearing.
For some folks losing money on a monthly basis, in return for convenience isnt a concern.
This is also true,as proven by the large numbers of folks in Condos who pay an added HOA fee for outside maintenance [lawn care,snow/leaf removal,some have a pool,exercise equipment,basketball/tennis courts].
BUT,that HOA fee must be paid on top of the mortgage/rent payment!
Last edited by i_love_autumn; 05-17-2015 at 05:32 AM..
Building an average single-family home generates 2.97 jobs.
You can usually own a better home for less (monthly), than an apartment.
And the savings decrease the longer you stay in the home, while they would increases if you continued to rent.
And in cases where rent is less than a mortgage payment, you must consider what you are paying for. Are you comfortable living in 800sqft or less, or do you value 1500+sq feet?
Property taxes and interest are deductible.
You're building equity, your money isnt just disappearing.
Ahh, but you are still ignoring the fact that the homeowner's property tax and homeowner's insurance rates..... continue to increase forever! As has been already stated in this thread,property taxes and interest ARE NOT tax deductible unless you have so much debt that you file long-form and meet the deductions requirement.... in other words if "you are in debt up to your eyeballs"! No thank you!
Ahh, but you are still ignoring the fact that the homeowner's property tax and homeowner's insurance rates..... continue to increase forever! As has been already stated in this thread,property taxes and interest ARE NOT tax deductible unless you have so much debt that you file long-form and meet the deductions requirement.... in other words if "you are in debt up to your eyeballs"! No thank you!
Many apartment renters also have insurance, and property tax and insurance on the apartment complex is passed on to the renter.
Many apartment renters also have insurance, and property tax and insurance on the apartment complex is passed on to the renter.
Try getting all that back when you move.
A homeowner doesn't get all their taxes and insurance back when they move either. Plus if one lives in an apartment 'complex', even though the owner's taxes and insurance are passed on to the renters,spread among however many units there are in the complex,the amount the tenants are paying is much smaller than if it is a single family home.
Many apartment renters also have insurance, and property tax and insurance on the apartment complex is passed on to the renter.
Try getting all that back when you move.
most renters don't fill up the standard deduction either so they fly the empty seats. a couple who rents may have only 5 or 6k in deductions and takes the entire standard deduction and gets money back they never spent .
most homeowners have way more going out in real estate taxes and mortgage interest filling up most or all of that standard deduction.
while renters usually get back money they never spent ,homeowners usually spend that money . but depending on income level most homeowners don't itemize and so the renters likely have the edge there in flying the empty seats.
landlords wish they can pass all these expenses on to tenants . being a landlord i would love it. but rents can only be what the markets allow you to get . markets do not care if you have a mortgage on your rental and the guy down the block doesn't , or that you spent 10k for a roof or 5k for a furnace.
it all goes in as the price of ownership and many times it is not recoverable for years in the rent.
Location: Stuck on the East Coast, hoping to head West
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I rented for 10 years, owned for 20 years. I desperately want to go back to renting, but hubby is fighting me on it.
I'll start by saying (and I know this is going to incite people) that I've never owned a house with the goal of actually owning a house. I would never keep most of my equity locked up in a house. In other words, I put the minimum down (I make sure I can afford monthly mortgage) and, as the equity goes up, I refi and take cash out and reinvest the cash elsewhere. I always keep about $50,000 equity in the house to cover selling costs. This has served me well.
Anyway, you never *really* own a house. Pay off the mortgage and then miss a tax assessment and see what happens.
Secondly, home insurance, property insurance, maintenance costs, and HOA fees have steadily gone up. Its extremely difficult to find houses not part of an HOA in my neck of the woods so that's a given.
Speaking of HOAs: Hate them. All it takes is one bad board member and they can make your life a living hell. Good luck fighting them. But that's a whole other topic.
I can't wait to get out. Over the years, I've spent vacation money on heating pumps (twice), dealt with lightning strikes, new roof expenses, burst pipes (yeah, we did take all necessary precautions), new plumbing, replaced windows, the list goes on and on. Oh, how I hate it! Add to that all of the things that the HOA wants done (replace your shutters, paint your gutters, etc) and it's a nightmare!
I thought I would finally have ONE year of no extra expenses and it didn't happen. This week I had to shell out $250 for a minor roach infestation (Incidentally, we're extremely clean, no idea how it happened, never saw a bug in 20 years of ownership, smh); $600 to trim a tree away from my house, and I have to replace my lawnmower and rent a powerwasher. It NEVER ends.
I keep records on my house and I know that the roof will need to be done in 5-7 years and the heat pump around that time, too. I'm out of here asap.
The worst part is that is not even considering all of the painting and floor projects that I need to finish. My house looks nothing like I envisioned it would look cosmetically because I just don't have the money, time, or energy.
NEVER AGAIN.
When renting, I had unresponsive landlords---and I moved. Bad neighbors moved next door---I moved. Better job offer in another city---I moved. When I made more money, I lived in luxury rentals. Made less money or needed less space, I moved to cheaper places. The flexibility was awesome.
My husband actually believes that we are coming out ahead because our mortgage is less than rent. However, when you factor in all of the maintenance costs, the time, the energy, the emotional costs (including the anxiety), it is just not worth it---at least for me.
At this point, I wake up every morning and plan my exit strategy out of home ownership. I am done.
By the way, if home ownership were truly the way to financial success banks would own the houses and not the mortgages.
A homeowner doesn't get all their taxes and insurance back when they move either. Plus if one lives in an apartment 'complex', even though the owner's taxes and insurance are passed on to the renters,spread among however many units there are in the complex,the amount the tenants are paying is much smaller than if it is a single family home.
Some do with the value of their home increasing.
Like i said, some dont put a value on the money spent and dont care about equity.
Its all about what you prefer, because facts cannot be denied. You lose money in most renting situations.
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