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Old 04-04-2015, 02:10 PM
 
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Where I live it would cost more to have a mortgage than to rent... And if you add in the amount of down payment you need that is out of reach for many many people.... I live in a state where the dirt is prized more than anything else.. Next come the taxes.... Add in maintenance and it makes more sense to rent....
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Old 04-04-2015, 02:36 PM
 
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I'm in somewhat the same boat. Consider buying an RV and traveling a lot to get an idea of the climate and location you might fall in love with (most people have no clue about the choices that are available just in the U.S.); consider out of the country also. Many people are expatting now, Mexico (the Lake Chapala area has 10s of 1000s of Canadian and US expats), the Caribbean, Central America, Europe... you could travel frugally for quite some time on a small pension. Consider also Craigslist - you can rent a room in a lovely house in many locations and share the common areas. People are having to rent out rooms to make their mortgages, and you'll automatically meet new people this way.

Look into the 'tiny home movement' although where to put them and local codes are a continuing worry. I'm hoping things change on that front as the economy goes further belly-up (it will) but I'm not sure I'll live long enough to see a real change.

If you're really adventurous, considering living on board a sailboat or houseboat. Rural areas are quieter and less expensive generally. Weather to me is important so I'm looking at areas with more sun and no snow.
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Old 04-04-2015, 03:45 PM
eok
 
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Quote:
Originally Posted by 68551 View Post
ended up moving from Pennsylvania to Northern Michigan and couldn't be happier! We love the low humidity of summer here
Are you near Lake Michigan? Is being north what makes the humidity lower?
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Old 04-05-2015, 01:28 AM
 
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Originally Posted by NeonGecko View Post
Rents go up every year....

Renting makes sense only in the short term. It is ALWAYS a losing proposition. Its true that owning - even after you've paid off the mortgage - isn't free. I don't think anybody said it was. But it is for darn sure less than paying rent for years on end.
In my area, rents are approximately the same today as they were 15-20 years ago. So are house prices, save for small sub-regions with the best schools. Neither landlords nor homeowners are seeing a profit. This is typical for stagnant (and especially for declining) regions. Renting is a losing proposition in times and places of growth. It's a winning proposition during protracted economic decline.
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Old 04-05-2015, 06:30 AM
 
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I am 60 and preparing to move to a lower-cost area and buy with about 2/3 of the proceeds from my house. I like the independence of having a house. I like not having to ask permission at my age to have pets as if I'm a five-year-old: "Mr. Landlord, may I PLEASE have a kitty? I promise I'll take care of it..." I like being able to paint rooms any color I want to, hang pictures on the wall, not have to smell my neighbors' cooking.
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Old 04-05-2015, 06:50 AM
 
Location: Jamestown, NY
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Originally Posted by Giesela View Post
Its only an investment in certain areas. Much of the "rust belt" a house is not.
As a matter of fact, were I to stay in Dayton I would only buy a house here if I planned on living in it forever.
I am not moving to one of those places where real estate reliably appreciates. Usually they are places that are more expensive to buy in and live. Sort of a plus/minus thing.
In some areas of the Rust Belt, rents are totally out of whack with the cost of buying, primarily because there's a big demand for rental units because many people can't qualify for mortgages because of low incomes/high debt ratios/spotty work records. That's the case in my area where I couldn't touch a desirable rental, either house or apartment, for what I pay for my mortgage/taxes/insurance.
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Old 04-05-2015, 06:52 AM
 
Location: Jamestown, NY
7,841 posts, read 7,350,900 times
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Quote:
Originally Posted by hackwriter View Post
I am 60 and preparing to move to a lower-cost area and buy with about 2/3 of the proceeds from my house. I like the independence of having a house. I like not having to ask permission at my age to have pets as if I'm a five-year-old: "Mr. Landlord, may I PLEASE have a kitty? I promise I'll take care of it..." I like being able to paint rooms any color I want to, hang pictures on the wall, not have to smell my neighbors' cooking.
Pretty much this, too.
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Old 04-05-2015, 01:54 PM
 
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Originally Posted by luv4horses View Post
You only build equity in a home if a) it sells for at least 6% more than you buy it for or b) if you lived in the home long enough to have paid down a lot of principal. At the beginning of your mortgage payments remember that you are mostly paying interest. As golfingduo mentioned, you also need to contend with regular maintenance costs which add an average of maybe 10-20%, plus taxes and insurance which add another 15% roughly to your 'payments'. For many people it does not make sense to buy their first home at 60.
Totally agree. Once again, too many times "home ownership" has been sold as a much better option. Many time, it "ain't." Even for younger folks.
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Old 04-05-2015, 02:16 PM
 
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Quote:
Originally Posted by MrRational View Post
Re the money? That depends on the level of your TOTAL assets.

IF ( a BIG if) you can buy a nice enough place that isn't going to suck you dry
with repairs and do so with LESS THAN 25% of your total assets... then look to buy.
But if buying requires too much of your assets... don't.'

eta: At age 60+.... the term "buy" should not equal mortgage
And there are those who say you should always carry a 30 year mortgage it maximize wealth.
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Old 04-05-2015, 02:21 PM
 
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Originally Posted by LivingDeadGirl View Post
I think if a homeowner averaged it out, it is about right. I just finished a $39,600 reroofing, new HVAC, new small front porch project. Average that out over 20 years and then add in all the other home maintenance stuff, including the tools needed to perform those things. I don't even want to think about what it costs to just maintain my house and grounds. For anyone who hasn't owned, they need to consider what they will do when suddenly, they need a large amount of cash to repair something.
If I owned I'd probably always have a 30 year mortgage so as to maximize wealth. It's more important to maximize wealth, especially, when in accumulation phase, than it is to "pay off" your house.
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