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Old 06-29-2015, 05:58 AM
 
Location: NY>FL>VA>NC>IN
2,524 posts, read 995,329 times
Reputation: 5344

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Because renting would be X dollars (say, $500) from now until I drop dead.
If I stay alive even five years, at $500/mo that equals 30k.
So if I buy a place for 30K or under, after 5 years I'm living for "free" so to speak.
If I thought I was going to live 5yr or less, it'd make much more sense to rent.
I can't afford to pay $500 rent for always, my money will run out. SS widow's benefits are still 8 years away for me.

 
Old 06-29-2015, 06:06 AM
 
Location: Orlando
1,984 posts, read 2,634,653 times
Reputation: 7543
Quote:
Originally Posted by OverItAll View Post
Because renting would be X dollars (say, $500) from now until I drop dead.
If I stay alive even five years, at $500/mo that equals 30k.
So if I buy a place for 30K or under, after 5 years I'm living for "free" so to speak.
If I thought I was going to live 5yr or less, it'd make much more sense to rent.
I can't afford to pay $500 rent for always, my money will run out. SS widow's benefits are still 8 years away for me.
Except that it's NOT "free," or even close, even if you have no mortgage. My house is paid for, but my monthly housing costs -- things like insurance, property taxes, yard maintenance, house maintenance -- exceed $600. I don't want to turn this into a rent-vs.-buy discussion, but don't delude yourself that home ownership is "free."
 
Old 06-29-2015, 06:08 AM
 
Location: Los Angeles area
14,018 posts, read 17,732,288 times
Reputation: 32304
Quote:
Originally Posted by OverItAll View Post
Because renting would be X dollars (say, $500) from now until I drop dead.
If I stay alive even five years, at $500/mo that equals 30k.
So if I buy a place for 30K or under, after 5 years I'm living for "free" so to speak.
If I thought I was going to live 5yr or less, it'd make much more sense to rent.
The above analysis barely scratches the surface. Included in the rent are several major items that the $30,000 for buying a house does not include, quite aside from the question of what sort of house is available tor that price:

1. Property taxes
2. Insurance on the structure itself
3. Maintenance and repair
4. Interest on the mortgage (which means you will pay much more than $30,000 for the house in the long run unless you are buying for cash)

Number 3 is a real wild card, unless the house is new construction. In five years time, you could easily spend $15,000 on maintenance and repair, or of course you could spend almost nothing if you're really lucky. That's why I call it the "wild card".
 
Old 06-29-2015, 06:17 AM
 
Location: NY>FL>VA>NC>IN
2,524 posts, read 995,329 times
Reputation: 5344
ha I've owned six houses, two were huge remodels and yes I am well aware.
You guys must think I'm an idiot (I am a neurotic head case but not naive as to life experiences like owning a house )

The places I am looking at have super low taxes like under $500/yr

Insurance on my last house for 165K was $360/yr and this place would be insured for FAR LESS than that. We are talking a small crappy house not a mansion in Palm Beach.

no mortgage, cash sale

maintenance, the places I'm looking at are under 600sf, that's like doing repairs on a garage or shed but I'm not buying a place that'll need much in that dept anyway.

WellShoneMoon (love your username by the way) if your ins/taxes/maintenance exceed $600/mo you're living higher off the hog than I have in years or would in future. Except for my 22 yrs in SoFla my monthly ins/taxes/maintanance never went anywhere past $300 so I think our situations are different. Taxes on my house in Roanoke VA were $1500 yr and insurance $360yr but that house assessed at 159K.

Last edited by VexedAndSolitary; 06-29-2015 at 06:25 AM..
 
Old 06-29-2015, 06:28 AM
 
Location: NY>FL>VA>NC>IN
2,524 posts, read 995,329 times
Reputation: 5344
http://www.realtor.com/realestateand...9_M66021-89924

This is the mansion I am talking about buying . That may clear up confusion
 
Old 06-29-2015, 06:34 AM
 
2,626 posts, read 4,950,826 times
Reputation: 2224
Quote:
Originally Posted by OverItAll View Post
http://www.realtor.com/realestateand...9_M66021-89924

This is the mansion I am talking about buying . That may clear up confusion
I've spent hours on that website (Realtor) and looked at 100's of homes throughout the eastern half of the U.S. One thing I wonder about the house you are considering..... there is no mention of heating.
 
Old 06-29-2015, 06:39 AM
 
Location: NY>FL>VA>NC>IN
2,524 posts, read 995,329 times
Reputation: 5344
It has a nifty heat/ac unit like the sort in a hotel room, installed in 2008.
When I started looking at these way small houses I asked a GC what sort of heat/air would be good for such a small place and that is the type of unit he recommended so I'm pretty glad that's what it has as that was what I was going to have put in.

Yes hours and it is frustrating and I am so over it so I feel you on that for sure.

Last edited by VexedAndSolitary; 06-29-2015 at 07:56 AM..
 
Old 06-29-2015, 06:40 AM
 
2,626 posts, read 4,950,826 times
Reputation: 2224
Quote:
Originally Posted by OverItAll View Post
It has a nifty heat/ac unit like the sort in a hotel room, installed in 2008.
When I started looking at these way small houses I asked a GC whet sort of heat/air would be good for such a small place and that is the type of unit he recommended so I'm pretty glad that's what it has as that was what i was going to have put in. Unit is from 2008.
Great!
 
Old 06-29-2015, 07:25 AM
 
Location: NC Piedmont
3,911 posts, read 2,877,558 times
Reputation: 6291
Quote:
Originally Posted by OverItAll View Post
http://www.realtor.com/realestateand...9_M66021-89924

This is the mansion I am talking about buying . That may clear up confusion
That is not far from the big chicken plant opened a few years back. I don't know if that plays into the dynamics of the neighborhood at all. I have driving through Rockingham a few times (sometimes I will take 1 instead of the interstates from Columbia to Raleigh) and it always struck me as a nice place. NASCAR used to have a few big races there often enough that it was something of a downturn for them when they were dropped from the circuit, but not the end of the world.
 
Old 06-29-2015, 07:29 AM
 
Location: Orlando
1,984 posts, read 2,634,653 times
Reputation: 7543
Quote:
Originally Posted by OverItAll View Post
http://www.realtor.com/realestateand...9_M66021-89924

This is the mansion I am talking about buying . That may clear up confusion
I wish you the best of luck with it. This could be a very cute little house, with some TLC. Just curious why it hasn't sold -- in fact, the price has been lowered?
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