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I think a lot depends on where you live. My apartment was nearly $2k a month before I bought. My mortgage payment which includes taxes and insurance is $1900 a month now. Taxes do go up but not as much as the rent. I looked online and that apartment I had six years ago now rents for $2400 a month. On average I pay about $2k a year on maintence. I do a lot myself and my brother helps out. And now my boyfriend too.
As for lost opportunity cost. I paid $350k for my house with $70k down. The full 20%. Recent sales in my block are pushing $500k and Zillow says my place is worth $480k. None of my other investments did so well.
But again its location. Where I live there are a lot of jobs and it's growing, a lot of millennials and a shortage of rentals.
I should note that I didn't save all of that $70k. More than two thirds was from an inheritance I got. It's hard to save up that much money for a house. I'd still be saving if my grandmother had not left me that money.
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
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Originally Posted by BellaLind
I think a lot depends on where you live. My apartment was nearly $2k a month before I bought. My mortgage payment which includes taxes and insurance is $1900 a month now. Taxes do go up but not as much as the rent. I looked online and that apartment I had six years ago now rents for $2400 a month. On average I pay about $2k a year on maintence. I do a lot myself and my brother helps out. And now my boyfriend too.
As for lost opportunity cost. I paid $350k for my house with $70k down. The full 20%. Recent sales in my block are pushing $500k and Zillow says my place is worth $480k. None of my other investments did so well.
But again its location. Where I live there are a lot of jobs and it's growing, a lot of millennials and a shortage of rentals.
And to be fair I didn't save all of that $70k. More than two thirds was from an inheritance I got. It's hard to save up that much money for a house. I'd still be saving if my grandmother had not left me that money.
That's a great thing about having roommates for awhile. I saved up enough to put down 20% for when I do buy and so I can avoid PMI.
And generally when I've rented the rent goes up very slowly if at all. Rents increase, but for new people moving in to vacant spaces. Landlords (good ones) value stability. My rent has gone up $100 in 4 years in the Boston area, while the vacant apartments in the building have gone up $400 plus or minus over the same period.
That's a great thing about having roommates for awhile. I saved up enough to put down 20% for when I do buy and so I can avoid PMI.
And generally when I've rented the rent goes up very slowly if at all. Rents increase, but for new people moving in to vacant spaces. Landlords (good ones) value stability. My rent has gone up $100 in 4 years in the Boston area, while the vacant apartments in the building have gone up $400 plus or minus over the same period.
Rent doesn't work that way here. Mine kept going up and the apartment sucked with a lot of noise, it was cold I the winter and I kept getting these weird worms in the summer after ever rain because I was at ground level. And I lived in a cheaper place in an ok area. The only thing I miss are the neighbors my age. We'd do things together like BBQ and play Frisby golf.
I like my house and I like owning. I've had fun doing things I want to the place. It's bigger and warmer than the apartment. And I can't hear the neighbors even though it's a row home. I live my flower garden too. I really don't like living in the city but it's a desirable area for families and retires alike. So it has good resale potential for my starter home.
I've managed to save another $30k since I bought this place. I'm not counting retirement savings. So I still wouldn't have enough to buy now if I had not gotten that inheritance. I would also have to save more to get 20% since home values went up.
I have nothing against room mates or men that have them. My boyfriend has room mates because of his situation. I had mostly good ones. But I've also had nightmare ones and I really like having my own place. Besides me and my boyfriend have the whole place to ourselves any time he comes over. I think only the kitchen and the powder room are free from our escapades!
I know men who have never left the nest and are now well past 40. I'd avoid a guy like that, if the apron strings have clearly never been cut.
But I also have a guy friend who went through a divorce and moved back to Philly from across the country. His official residence is with his mother, but he travels so frequently on business that he's rarely there. His mom also doesn't drive, is single, and is looking toward retirement, so he feels a little bit of responsibility to take care of her---especially after how much she supported him during the divorce.
He could easily afford his own place but it just doesn't make sense to him, and who am I to judge that?
I would take it on a case by case basis, but then again I'm not like most people and I'm not really that into material things, so there's that too.
good post.
Situations are different for everyone. At age 30 my grandmother had a series of mini-strokes and the family was put in a predicament that we'd have to put her in a nursing home if no one could be with her 24 7.
I had applications out to grad school at the time so I was in between school. I decided to move with her which ended up being about 2 years. I didn't attempt to date women during this time for the exact stigma and superficial nature that is being displayed on this thread.
I didn't need people to judge me and feel the humiliation for what I knew was the right thing for me to do.
So bravo for not being superficial! It's hard to find a good woman these days.
Situations are different for everyone. At age 30 my grandmother had a series of mini-strokes and the family was put in a predicament that we'd have to put her in a nursing home if no one could be with her 24 7.
I had applications out to grad school at the time so I was in between school. I decided to move with her which ended up being about 2 years. I didn't attempt to date women during this time for the exact stigma and superficial nature that is being displayed on this thread.
I didn't need people to judge me and feel the humiliation for what I knew was the right thing for me to do.
So bravo for not being superficial! It's hard to find a good woman these days.
Taking care of grandma is an honorable thing and any woman worth anything would have been ok with your situation.
I am trying to figure out the paying less owning than renting. Never been able to make that work, not living in a similar place. When you add up repairs, maintenance, and all the little things... and property tax of course, then you subtract the opportunity cost of the 20% downpayment, I've always found there needs to be significant property value growth to make that work... and there is no paying me for the headaches either.
You have to be in the right market. I'm not sure where you live, but it's definitely cheaper to own certain properties here in Denver than to rent. As far as maintenance, I purchased some new kitchen appliances (with the help of my roommate's funds), but that was a choice, not a requirement. I may end up buying a new washer/dryer here soon, but again, it's more out of choice than necessity. Other than those things, all the money I've put into the place thus far has been nominal and mostly for superficial upgrades (i.e. a new curtain in the living room, blinds, a stand alone bar). As for outside maintenance, the HOA covers all of that.
The way I figure, I can pay some other owner $1700-$2000 for the same size 2BR/2BA unit I have now, or pay $1150/mo (mortgage, HOA, taxes, insurance) for something that is mine, something that I will own. I know that I will be here for some time at this point. But even if I decide to move in the next five years, I'm fairly confident that I'll either be able to sell the place fairly quickly or at least rent it out (there were actually renters in here prior to me buying it). People will always need a place to live at the end of the day.
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