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Old 08-14-2014, 01:48 PM
 
Location: southern california
53,432 posts, read 68,333,696 times
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people that play leverage games and borrow more than they can pay back ---end up with a house under water.
it is useless to talk about the value of home ownersship if you are a compulsive debtor.
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Old 08-14-2014, 01:54 PM
MJ7
 
6,223 posts, read 7,433,634 times
Reputation: 6467
I have a few friends that have done this, one word: women.

I'm currently saving up to build a house that I personally design on land that I buy where I want. I will have no intentions of selling my house once I build it. I also plan on making it a surprise retirement villa for my folks, because it will be in an extremely awesome spot.
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Old 08-14-2014, 02:11 PM
 
Location: Denver CO
13,680 posts, read 7,022,798 times
Reputation: 19187
I think a lot depends on the rental market where you live. Here in Denver, the rental market is very tight and rents are high and nice rentals are not always easy to find. I was in a position to put 20% down on my house as I had sold a prior home, which has left me with a mortgage that is several thousand dollars a year less than it would cost to rent the same place (I live in a townhouse complex and know what the other units rent for).

I'm selling my house, and using the equity to put down on a new place, which I plan to pay off by the time I retire and leave me with a very small housing payment in retirement, even including budgeting for reasonable repair costs over the years.

I'm sure in many locations, the numbers don't all work out the same way, and it may make a lot of sense to rent, and save. But in my case, spending MORE on housing than I current do AND not building any equity while doing so just didn't make any sense.
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Old 08-14-2014, 02:26 PM
 
Location: On the corner of Grey Street
6,033 posts, read 7,272,071 times
Reputation: 11286
I bought a house earlier this year. It's a personal decision. I moved to the east coast after a few years in Denver where the rental market is out of control. It was good luck finding anything decent there and good luck if you could afford it if you did. In my current location, my mortgage is much cheaper than anything I could rent. Taxes are low here too. I lucked into a foreclosure in a great neighborhood and because I did the repairs myself, I greatly improved the value of the house and now I could sell my house tomorrow and make money, or I could always rent it out with some left over after I make the mortgage. I probably wouldn't have felt comfortable buying if the mortgage wasn't so affordable and if I didn't feel there would be an opportunity for me to get out of it later if I change my mind about where I want to live.

I could see renting again in the future, but for now I do enjoy the perks of my own yard, not sharing walls, and being about to do house projects and customize my home to my specific tastes.
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Old 08-14-2014, 02:55 PM
 
259 posts, read 217,793 times
Reputation: 949
Quote:
Originally Posted by don1945 View Post
The one downside is noise. It is a little quieter in a single family home than it is when you have 400 other people living around you.
When I bought my prior home, it was a wonderful quiet neighborhood. In the 10 years I lived there, the homes on either side of me sold and to incredibly LOUD neighbors who partied and were generally disagreeable. I sold and bought a condo in a large complex, and this place is so quiet! My unit is upstairs, and my downstairs neighbor played music a bit loud but turned it down when I asked - loud music isn't allowed. There are regulations about dogs barking: if your dog disturbs neighbors, it's on you to find a solution to the barking or you have to get rid of the dog. That could be oppressive for some dog owners, but it's great for me!

I really like the idea that my rights end where yours begin, and that I need to confine my noise to the inside of my home. Makes for such a lovely, peaceful existence

That said, I do miss my property, garden, etc - but live in the SF Bay Area and couldn't afford to replicate that once I left the mountains. As for the economics, rent is so high here that owning almost outright makes me feel more secure because my current mortgage, taxes and fees are about 1/3 what rent would be.
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Old 08-14-2014, 03:24 PM
 
4,687 posts, read 3,454,560 times
Reputation: 12484
Quote:
Originally Posted by emm74 View Post
I think a lot depends on the rental market where you live. Here in Denver, the rental market is very tight and rents are high and nice rentals are not always easy to find. I was in a position to put 20% down on my house as I had sold a prior home, which has left me with a mortgage that is several thousand dollars a year less than it would cost to rent the same place (I live in a townhouse complex and know what the other units rent for).

I'm selling my house, and using the equity to put down on a new place, which I plan to pay off by the time I retire and leave me with a very small housing payment in retirement, even including budgeting for reasonable repair costs over the years.

I'm sure in many locations, the numbers don't all work out the same way, and it may make a lot of sense to rent, and save. But in my case, spending MORE on housing than I current do AND not building any equity while doing so just didn't make any sense.
This was us. My wife and I sold our house in Florida and moved out here (meaning Denver). We rented an apartment for 1 1/2 years and even though the apartment was really nice, they upped the rent almost 150 bucks after the first year. We couldn't wait to get out of the apartment and no longer have to share walls with loud neighbors. We also couldn't wait to have an actual garage to park our car instead of a huge parking structure. The simple things of carrying in groceries from the car to the apartment was a pain. We had to take an elevator up one level from the garage, walk across the street, then take another elevator up a level and then go down the hall to the apartment. It was a complete pain.

The house we ended up buying turned out to be less per month even with escrow. Our power bills even dropped because the appliances were more energy efficient even though we were heating/cooling over 1000Sq/Ft more. The only thing we have to worry about now is taxes and insurance going up. This isn't much of a worry, just more of an acceptance.

I also don't like the idea of renting a house and having it sold/foreclosed on underneath us. The idea of moving every couple of years doesn't appeal to us. I moved enough in the military so I have no desire to want to do it again.

Yes there are downfalls to owning a home such as repairs and stuff, but it is the projects I like doing. Except painting....I hate painting.

My wife and I are in our mid 30s. Time will tell if we still feel this way 15-20 years from now.
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Old 08-14-2014, 04:28 PM
 
5,530 posts, read 3,491,455 times
Reputation: 10040
My ownership experience has been a disappointment. 13 years ago, I bought a sprawling place in the countryside - and took pains to quickly pay off the mortgage. The goal was privacy, freedom to pursue my various hobbies, and insulating myself from the vicissitudes of the real estate market of a declining Rust-Belt city. Instead, I found that:

- noise from a neighbor's outdoor stereo travels far... even if you live >100 yards from the nearest house, surrounded by forest.
- even a small house is too large for a single, child-free person who's rarely home and doesn't have many possessions.
- the local housing market can remain moribund, despite overall recovery nationwide.
- harsh winters are much harsher in the countryside.
- time spent on maintenance of a large property is time not spent enjoying said property.
- a leaky roof on a $100K house in rural Ohio costs the same to repair as a leaky roof on a $1M house in NYC - but if feels like a minor running cost in NYC, and a huge capital expense in Ohio.
- perhaps in 10 more years, my house will return to the price that it commanded in the 1990s.

Some day, I'll sell this place, and will move to a city with an international airport and a subway system. Until then, I'm stuck owning. Hurray for the "American Dream"!
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Old 08-14-2014, 04:33 PM
 
417 posts, read 622,625 times
Reputation: 475
Quote:
Originally Posted by snowlady09 View Post
After losing 30K in home value,I am done with home ownership. My husband and I are moving on August 29, straight from our closing. Heading to our new townhouse rental unit in Wilmington,NC. No more worrying about the roof,the septic,the pipes freezing,new appliances,looking at the 2 foreclosed properties across from us.

We can pick up and find a new place without a care. Don't have to burden our children with selling the house when we die. We will never own again. Oh Happy Day
Burden them with selling the house and keeping the profit? That's not a burden that's called an estate. Now you leave them with nothing.
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Old 08-14-2014, 05:06 PM
 
54,887 posts, read 57,257,764 times
Reputation: 35099
Quote:
Originally Posted by ohio_peasant View Post
My ownership experience has been a disappointment. 13 years ago, I bought a sprawling place in the countryside - and took pains to quickly pay off the mortgage. The goal was privacy, freedom to pursue my various hobbies, and insulating myself from the vicissitudes of the real estate market of a declining Rust-Belt city. Instead, I found that:

- noise from a neighbor's outdoor stereo travels far... even if you live >100 yards from the nearest house, surrounded by forest.
- even a small house is too large for a single, child-free person who's rarely home and doesn't have many possessions.
- the local housing market can remain moribund, despite overall recovery nationwide.
- harsh winters are much harsher in the countryside.
- time spent on maintenance of a large property is time not spent enjoying said property.
- a leaky roof on a $100K house in rural Ohio costs the same to repair as a leaky roof on a $1M house in NYC - but if feels like a minor running cost in NYC, and a huge capital expense in Ohio.
- perhaps in 10 more years, my house will return to the price that it commanded in the 1990s.

Some day, I'll sell this place, and will move to a city with an international airport and a subway system. Until then, I'm stuck owning. Hurray for the "American Dream"!
Which is why we sold our rural 2nd home and plan to retire right here in queens ny a borough of nyc.
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Old 08-14-2014, 09:18 PM
 
Location: Atlanta (Finally on 4-1-17)
1,847 posts, read 2,138,925 times
Reputation: 2550
Quote:
Originally Posted by mathjak107 View Post
i would buy a co-op or high rise condo here in ny. I would not ever buy a single family home with chores to do again.

If I do buy, I doubt if it would be a SFH.
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