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This rent vs own subject has been kicked around on various threads. Do the math - rent for a decent 2 Br is what? $900 - $1500 per month. My mortgage is $690 and that will soon be gone and then it's ins., taxes and maintence which all totaled will never be $690 a month and certainly will never be $1000 +.
Ahem....it's much more than that per month. We are paying taxes, water and sewer and home owner's insurance that will escalate steadily over the coming years, we have repairs and replacements we have to figure in, and if we own in an area that makes us car-dependent, we really have to figure in the monthly cost of car maintenance, replacement and gas (at least a percentage of it).
I am now, for instance, driving 1/4 of what I was driving when I lived in the home I recently sold. But I can see the need for a new roof, taxes will go up, and the furnace, if I stay another 5 to 10 years, will probably need replacing. This is all BIG BUCKS! not to mention lawn and snow maintenance, repairing a cracked driveway, oh the list goes on.
At some point we are supposed to stop spending and start living on whatever we've accumulated, in thrift of course. I can see that although I love my new place, it is not sustainable forever and sooner or later I will be taking LiveContent's advice. For me personally, there is wisdom in that. For others for whom money is of no or little object, owning is fine. Now I put my dog on a diet so she can fit the restrictions of senior housing in a few years~!
This rent vs own subject has been kicked around on various threads. Do the math - rent for a decent 2 Br is what? $900 - $1500 per month. My mortgage is $690 and that will soon be gone and then it's ins., taxes and maintence which all totaled will never be $690 a month and certainly will never be $1000 +. I pay $20 a week to have a large yard mowed. I have pets and need to have a place for them. I remember all too well renting with 2 dogs and the hassles which is why I gave up a lot to finally get a home with a fenced yard. This isn't a subject that can be debated - everyone must do what suits them.
I lived in Denver and had a beautiful garden. Granted, it's different than here in the midwest, but very doable. Roses thrive there with all the sunshine.
You are forgetting about the Market Rate of Return on the Value of your house, if you sell and invest the amount. For people have got more on their investment by owning because the appreciation was greater than the market rate of investment; today that is no longer the case for many.
You can do the math many ways but it depends on your situation. I am a few years away from my taxes being reduced when I reach 65. Unfortunately, one cannot depend on it always being there, as my father who lives in the adjacent county did suspend the discount program for the last year because of budget issues.
I have done the math and I could live cheaper, if I rent. I am not saying I would live better; I am only saying that it would cost less.
I lived in MN all of my life and in '92 I transferred with my company (USWest) to Denver. I lived in Denver for 2 years and then with the company going through ugly times I accepted a job back in Mpls - mostly for job security. I didn't want to move back here but the job was better (same company). I knew I would someday go back to CO.
I just felt "at home" from the first day I moved there. My family use to say "Poor _________, so far from home" and just couldn't grasp that I felt totally "at home" there.
Now I'm retired and can go back - this time I have to pay for the move.
You are very lucky. You could have still been working at Century Link--that is the "Dukes of Hazard" of the telephone industry and been relocated to that little town in the South.
I have never been to Mpls but I imagine it is much the same look of the land as where I grew up near Buffalo. I know it is not as decayed and decrepit as Buffalo and is considered a progressive and desired city to live. I could not take the cold and snow anymore; yet, I do miss the environment of the Great Lakes. Fruits and Vegetables grow so much better there and those small farms and idyllic towns are much better than Colorado.
As I said - everyone has their own perspective on owning vs renting. You will never convince me that renting is cheaper, unless what you rent is really trashy and even those rentals are more than what I am paying for a 3 BR 3 bth nice home in a nice area.
Also, I have lost enough in the market in July to pay my mortagage for a long time - so investing is balooney as well.
One consideration in the owning vs renting category could be how much room is needed. I mean, being by myself with just the cat, I have never needed a whole lot of space. For me, renting a nice one bedroom apartment would be cheaper than buying a two or three bedroom house.
I think for someone with my needs, one would come out ahead by renting. But then again I never could afford a house so I wouldn't know for sure. I have been happy in apartments though. The one time I rented a two bedroom house was one of the noisiest experiences I ever had. The two houses on either side of me, though separated by driveways, had loud tenants on either side.
One had small screeching children the other had a deaf elderly couple who played their TV and radio very loudly all the time. I may have well have been in an apartment with common walls.
As I said - everyone has their own perspective on owning vs renting. You will never convince me that renting is cheaper, unless what you rent is really trashy and even those rentals are more than what I am paying for a 3 BR 3 bth nice home in a nice area.
Also, I have lost enough in the market in July to pay my mortagage for a long time - so investing is balooney as well.
Hogwash, I say!
These are some senior housing apartments in the Denver area:
I want to show you pictures of these two Senior Public Housing project, in Lakewood, Colorado. They are owned by Jefferson County. It accepts low income and Section 8.
Residences at Creekside (http://www.mwhsolutions.org/creekside.htm - broken link)
http://www.mwhsolutions.org/willowglen.htm (broken link)
And these, own and run by a faith based organization, also Section 8 and low income, in Wheat Ridge, CO. These are both adjacent to each other and next to a park which has the Senior Center of Wheat Ridge. They are located on a bus route in a safe quiet neighborhood and down the road from supermarkets and a major hospital.
and this one, one of oldest, in the expensive neighborhood of Cherry Creek in Denver. It is owned and run by a non-profit organization.
http://www.ajsh.org/C151DDE712564193AEA742F6BA5144E4.asp?ccb_key=F4664 D02C2F941F1B693D04C39CCF593&ie_key=2331C76E1A12431 19676802955545598 (broken link)
Judge for yourself. There are many choices of senior housing, run by different organizations, that are economical, well built and maintained, safe and in good neighborhoods. These are examples of public housing for low income. Of course, there are senior apartments and communities that are much more expensive and luxurious. I just trying to show people that it is possible to live well and safe as a senior with limited resources.
Livecontent
Last edited by livecontent; 08-01-2011 at 10:38 PM..
As I said - everyone has their own perspective on owning vs renting. You will never convince me that renting is cheaper, unless what you rent is really trashy and even those rentals are more than what I am paying for a 3 BR 3 bth nice home in a nice area.
Also, I have lost enough in the market in July to pay my mortagage for a long time - so investing is balooney as well.
Hogwash, I say!
Hmmm... I dont need a 3-bedroom, 3-bath house for one person.
I am going to move to Maine, and the rents start at $450/month.. yes, they go up above $1,000 - but i dont need something like that for myself. I dont want a lot of room - to have to clean lol. I do need some place that will accept my dog, and many will.
My house is paid for here in NJ.. my property taxes are $4,000/year. I am disabled and also get a small pension. My car insurance is $1,500 a year and homeowners insurance is $900. What taxes get reduced at 65 - not property taxes, right? (I saw someone mentioned a tax reduction.)
To cut my lawn here is $68 per cut, and most of the cutting season they come each week.
I have had the joy and good feelings of home ownership for about 20 years. I think they only way i'll do it after i sell this one, is if it's small, and with a small yard - and even then i still think i'll rent - and move around as i want to - and invest. The stock i buy continues to go up so i guess i'm lucky.
Some may be able to rent cheaper than own, that's all i'm saying.
Last edited by Jellybean50; 08-01-2011 at 10:17 PM..
Hmmm... I dont need a 3-bedroom, 3-bath house for one person.
I am going to move to Maine, and the rents start at $450/month.. yes, they go up above $1,000 - but i dont need something like that for myself. I dont want a lot of room - to have to clean lol. I do need some place that will accept my dog, and many will.
My house is paid for here in NJ.. my property taxes are $4,000/year. I am disabled and also get a small pension. My car insurance is $1,500 a year and homeowners insurance is $900. What taxes get reduced at 65 - not property taxes, right? (I saw someone mentioned a tax reduction.)
To cut my lawn here is $68 per cut, and most of the cutting season they come each week.
I have had the joy and good feelings of home ownership for about 20 years. I think they only way i'll do it after i sell this one, is if it's small, and with a small yard - and even then i still think i'll rent - and move around as i want to - and invest. The stock i buy continues to go up so i guess i'm lucky.
Some may be able to rent cheaper than own, that's all i'm saying.
Property Taxes get reduced, when you reach 65, in my county of Adams in Colorado to 1/2 of the taxes on the assessed valuation of of a property at a market valuation $200,000. There is a requirement that you must have been a resident of the property for the previous 10 yrs.
Your taxes and costs of living are outrageous in in New Jersey. If you can find a home where you would not have to own a car and get by with public transit, that would be a big savings. Keep in mind, eventually, you may have to stop driving and living near where there are other options is wise for the future. If you are disabled, there are many low cost options.
Thank You, livecontent. You do remind me of a few things I need to keep in mine... and
Yes, I know i have to get out of this state. My two sisters live here and they worry about me, but they have a lot of money lol... they can make it here!
Hmmm... I dont need a 3-bedroom, 3-bath house for one person.
To cut my lawn here is $68 per cut,
.
I don't need a 3 BR either but when I bought this house I was thinking resale. 2 BR are rare here and resale is very limited. I had a 4 BR in Denver - that house sold in 2 days (normal market).
How did your stocks continue to go up in July when the market itself was down nearly everyday?
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and just couldn't grasp that I felt totally "at home" there.
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