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Plus, these days (with the exception of a few major cities), a mortgage is cheaper than rent (assuming you make enough money to get one). So I am not even saving money by renting.
I've owned where I live most of my adult life but it's not as simple as comparing the monthly mortgage payment to the monthly rent. My monthly mortgage payment in a house I love is $700, but I put down $150,000. Every month I put aside another $1,000 in a reserve fund for property taxes, homeowners insurance, HOA Dues and repairs. My house overlooks a beautiful lake but it's formed by a 75-year old dam that's leaking. We haven't been able to find anyone to quote the work because we're an HOA and considered residential and no one wants to do residential work. It's going to be VERY expensive and we (46 lot owners) will have to split the cost since we own the lake.
I've made very good profits on 2 of the houses I owned and barely got out what I put into the other 2. I doubt I'll make much on this one. DS and DDIL just bought a new house and the one they sold was also about break-even after 8 years. It was in a LCOL area, almost 100 years old, not HGTV-ready at all, but it was what DS could afford a few years out of college.
Anyway- I know I'm blessed. I had choices and chose to buy and not rent- after that last landlord kept my deposit in 1979 because I had bought a house and was moving out (I'd ALWAYS paid on time, left the place in good shape), I was glad I wasn't under the thumb of a landlord anymore. Landlords DO, however, take on the costs and responsibility for property taxes, insurance, maintenance, etc. that you don't see.
My advice to anyone looking to rent is to stay away from private landlords.
Why is this? Our landlord owns 4 condos in a row. She lives in one, and rents the other 3. We’ve been here 3 months and she’s been fantastic. Any issue we’ve had she’s had resolved in a day or less.
Why is this? Our landlord owns 4 condos in a row. She lives in one, and rents the other 3. We’ve been here 3 months and she’s been fantastic. Any issue we’ve had she’s had resolved in a day or less.
It's because some private landlords are money collectors and drag their feet when you have a maintenance issue. Not saying all are like that but the two private landlord I rented to seem like they had a attitude when I had a maintenance issue. Now that I live in a complex my maintenance issues are responded to in 1 or days at the most.
This is a great example of people not knowing the difference between needs and wants. You can get a refrigerator for a lot less than $1,800. Maybe it wouldn't be quite as nice as the old one, but it would work very well at refrigerating. For all we know the old one could have been fixed for $200.
People have problems when they have no emergency fund to handle these types of issues which we all know will happen sooner or later. You may not know exactly which issue will be next of how long until it gets here, but sooner or later it will definitely rain. Choosing to live beyond your means isn't a problem with homeownership, it's a problem on its own.
It also sounds like hubby likes to spend money they do/don't have on stuff they don't really need. That's also an issue on its own, not an issue that has anything to do with homeownership. Maybe homeownership gives him more reasons to spend like congress instead of acting like an adult, but that isn't homeownership's fault.
This may be true, but if I have a problem with my furnace, dishwasher, stove, or fridge, it doesn't cost me a thing. And the lawn gets cut with no input from me.
In the 18 months plus that I have been here, they have put in a new sliding door, new deck (about 20' x 20') and outside stairs, new roof replacing skylights, new wiring to the stove, new oil tank, toilet repair and floor repair under toilet and the furnace got worked on several times. I didn't have to pay for any of it (except through my rent, which is quite reasonable).
I would rather have a known amount (rent) to pay every month and not get hit with surprise bills.
Not saying it is for everyone, I have been a home-owner in the past and may be again in the future. Right now renting works for me.
It's because some private landlords are money collectors and drag their feet when you have a maintenance issue. Not saying all are like that but the two private landlord I rented to seem like they had a attitude when I had a maintenance issue. Now that I live in a complex my maintenance issues are responded to in 1 or days at the most.
I guess it just varies. Our first landlord owned a lot of properties, but still a “private landlord” he had one guy who did all the work. It was a miracle for him to show up, and the only time he did was for a sink leak that had gotten worse and worse to a point where we couldn’t contain it without emptying a bucket multiple times a day.
This may be true, but if I have a problem with my furnace, dishwasher, stove, or fridge, it doesn't cost me a thing. And the lawn gets cut with no input from me.
In the 18 months plus that I have been here, they have put in a new sliding door, new deck (about 20' x 20') and outside stairs, new roof replacing skylights, new wiring to the stove, new oil tank, toilet repair and floor repair under toilet and the furnace got worked on several times. I didn't have to pay for any of it (except through my rent, which is quite reasonable).
I would rather have a known amount (rent) to pay every month and not get hit with surprise bills.
Not saying it is for everyone, I have been a home-owner in the past and may be again in the future. Right now renting works for me.
This is a good post, and a good way to put it. It’s nice to know my rent is the same for the duration of the lease even if the water heater craps out etc etc.
Repairs and maintenance are the cost of doing business as a LL. Most good landlords are going to turn a fair profit no matter what, as they know these things happen.
Thank you, everyone, I do appreciate all this feedback! Actually, I am "mobile". I do have some savings and I have no kids. However, given the fact that I am not currently living in an extravagant area and do not have a specialized skill set, I don't think relocation would solve my problem. Any other area (I refer to metro areas since I work) that has lower housing costs will probably have lower wages. That's just how it works. With the exception of a few major cities where wages are not commensurate with COL (my hometown of Miami comes to mind).
As for home repairs, I realize they happen. However, I think appliances can be purchased at reasonable prices. Just out of curiosity I looked at refrigerators, and a decent full-sized one can be purchased for around $ 360.00. The biggie would be a roof repair.
I am not opposed to a mobile or manf home, but it would not be ideal. I think I would find it preferable to condo living, though.
No, I would not consider a roommate (I am in my 50's). I am hypersensitive to noise, plus I have 3 cats that I love very much. I'm sure the cats would be a dealbreaker for most people.
Yup, always easier said than done! I was determined to relocate (back) to Oregon or farther-north CA, and spent YEARS job-hunting up there - all on my own dime, too, since public jobs don't reimburse for stuff like interview travel expenses. And as I said earlier, the only offer I got was for waaaay too little money, even when I factored in the lower COL.
Unless you're retired, work remotely, or have a LOT of savings, it's just too risky to relocate without a job lined up first. The difficulty of finding that new job depends on your field, but for most people it could take a while. And that's from the perspective of a single women without children, so things get even more complicated when you have spouse/kids to worry about.
I agree 100%. If I had some specialized skill set, I would be okay with just packing it up and moving without a job lined up, especially if I was younger. But being older in a job they could fill with 100 other applicants, no way. The irony is, you do have to move first, because why would an employer from out of town hire someone non-local for a position they could fill locally? It's a vicious cycle.
I agree 100%. If I had some specialized skill set, I would be okay with just packing it up and moving without a job lined up, especially if I was younger. But being older in a job they could fill with 100 other applicants, no way. The irony is, you do have to move first, because why would an employer from out of town hire someone non-local for a position they could fill locally? It's a vicious cycle.
Yup, and a LOT of people get stuck in the Catch-22 of "I can't really afford to live here anymore, but I also can't afford to move (or find a job beforehand)." So what do you do? Just keep trucking, I suppose, and hopefully make some efforts to increase your income potential.
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