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Old 03-22-2016, 09:28 AM
 
2,298 posts, read 1,580,112 times
Reputation: 2747

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Quote:
Originally Posted by Nightengale212 View Post
And there are those like myself who prefer and have enjoyed home ownership. With much sacrifice I paid my home off in 8 years which was 18 years ago. It currently costs me including property taxes and maintenance $1800 a month to live in my home. Since owning my home which provides me the ability to write off my property taxes which are $6000 annually I pretty much get that all back in Federal and State tax refunds. If I were to attempt to rent a home similar to mine in my area it would cost me close to $3000 a month and I would get no tax breaks and no equity. Not only do I own a home in a very desirable area that I could sell tomorrow for full profit for close to $400,000 which it cost me $200,000 to build, owning my home outright provided me the ability to put my former $600 a month mortgage payment into my 5% match Fed Gov 401K/TSP x 18 years with another 6 to go will provide me a solid 1/3 of my retirement income instead of it going into a landlord's retirement fund.

In the course of my life I rented two years when I was single and four years when I was first married and hated every minute being a renter. I am someone who does not like to live in close quarters, I enjoy having pets and gardens, and want the choice to paint my living room lime green if the spirit moves me. There may come a day when I will rent again when pets, gardens, and space may not be so important to me.

You found a way to get ahead being a renter and I did the same being a home owner.
Agreed. To many it's a lifestyle choice, not a financial one. Mine was both. If I ever did own, I would make sure I'd always have a mortgage and I'd invest the difference, thus having a higher net worth plus liquidity. I'm more concerned about my financial well being than paying off my mortgage and not having the flexibility, liquidity, and higher net worth.
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Old 03-22-2016, 09:34 AM
 
Location: Carolina
190 posts, read 303,154 times
Reputation: 324
Quote:
Originally Posted by Vision67 View Post
I've read lots of articles about how much people should save for retirement and about how few actually are successful reaching that goal. This article demonstrates how dependent retirees actually are on Social Security.

"Based on this data, only the top quarter of all savers and only the top 12% of all retirees in this age range can count on a minimum of $16,000 in income each year from their nest eggs."

US retirement savings vary widely - Business Insider



Don 't worry, the government will take the top quarter's social security and give it to the folks that don't have any before it's all over with. The more social security runs out, the more they take and spread around. Only the lawmakers are above being taxed at the same rate. Nothing new here..
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Old 03-22-2016, 11:37 AM
 
Location: Forests of Maine
30,793 posts, read 49,677,813 times
Reputation: 19266
Quote:
Originally Posted by mathjak107 View Post
we owned homes off and on but i hated owning them and the chores that went with them .

in fact if we had still owned a home and all that money was tied up in that home we would have never have had the funds to invest in the things we did which were far more lucrative . today we can buy multiple homes with what the investments produced even after subtracting out taxes and rent so we don't regret renting for a second .
My parents had a few friends who were all into flipping houses. Buy an older distressed home, live in it 4 or 5 years as they remodeled, and then sell. They seemed to do really well with that. Or at least they thought they were doing well.

When I have seen my own friends flipping houses, it seemed to me that it was always a bit of a gamble. You invest so much time and money, and then hope they get back how much they invested.

Buying Single-Family homes just never made much sense to me. You pay way more than the actual purchase price [by the time you sum escrow and interest]. It seems to me like so much gamble.

We stuck to Triplexes, Fours and Five-plexes, and we were eventually able to pull out the equity that we had built-up and we bought our farm with the cash.
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Old 03-22-2016, 01:20 PM
 
33,046 posts, read 22,221,441 times
Reputation: 8971
Quote:
Originally Posted by Vision67 View Post
Actually you never really "own" a house.

If you think you do, watch what happens when you don't pay the property tax.

But when you get old enough you do get the homestead exemption if you own your home, which beats not getting it if you rent.
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Old 03-22-2016, 01:21 PM
 
72,579 posts, read 72,452,347 times
Reputation: 50094
depends where .
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Old 03-22-2016, 02:42 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 18,026,835 times
Reputation: 6724
Quote:
Originally Posted by BugsyPal View Post
...Study after study has shown the S&P 500 has out performed homeownership as an investment, and has been so for decades.

Now if you live in a very low cost area where owing a home/property is rather inexpensive, *and* you plan on remaining for enough time to let that investment grow, then yes owning your own place is the better option.
I don't know if any investment - including the SP500 - will be a better investment than a house over any given period of time. Kind of depends on the investment - the housing market - and the house. Some houses - like waterfront houses in SE Florida - have been fabulous investments over the course of many decades (with the inevitable ups and downs we get over the years when it comes to Florida real estate). OTOH - I think those are the exceptions - not the general rule.

On my part - I have never looked at any house/condo that I've owned as an investment. It's a consumption/lifestyle thing. The most important things about owning as opposed to renting for me are: 1) no landlord can tell me what to do with the place; and 2) no landlord can ever kick me out if I don't want to leave.

I disagree with your statement that buying in an inexpensive area is a good idea. In terms of being an investment (as opposed to a place to live). Over the decades - I've seen that good fairly expensive areas tend to become better and only more expensive. Whereas the less expensive ones tend to stay "meh". Everything comes down to location - location - location - and available land. All of our parents had location in their favor. Their houses were torn down - and replaced with much grander places - after they sold. One house was in Bergen County NJ - and the other was waterfront in SE Florida. When it comes to my late inlaws' place in North Carolina - the value has pretty much gone nowhere over the course of 3+ decades. I would be wary of retiring and moving to an area with lots of land that can be developed. At least in terms of resale (if I cared about resale). Robyn
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Old 03-22-2016, 02:45 PM
 
72,579 posts, read 72,452,347 times
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the more expensive home will do better . a 250k home that appreciates 3% a year has a much less compounding in value then a 600k home that appreciates at the same 3% a year .
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Old 03-22-2016, 02:47 PM
 
72,579 posts, read 72,452,347 times
Reputation: 50094
Quote:
Originally Posted by Robyn55 View Post
I don't know if any investment - including the SP500 - will be a better investment than a house over any given period of time. Kind of depends on the investment - the housing market - and the house. Some houses - like waterfront houses in SE Florida - have been fabulous investments over the course of many decades (with the inevitable ups and downs we get over the years when it comes to Florida real estate). OTOH - I think those are the exceptions - not the general rule.

On my part - I have never looked at any house/condo that I've owned as an investment. It's a consumption/lifestyle thing. The most important things about owning as opposed to renting for me are: 1) no landlord can tell me what to do with the place; and 2) no landlord can ever kick me out if I don't want to leave.

I disagree with your statement that buying in an inexpensive area is a good idea. In terms of being an investment (as opposed to a place to live). Over the decades - I've seen that good fairly expensive areas tend to become better and only more expensive. Whereas the less expensive ones tend to stay "meh". Everything comes down to location - location - location - and available land. All of our parents had location in their favor. Their houses were torn down - and replaced with much grander places - after they sold. One house was in Bergen County NJ - and the other was waterfront in SE Florida. When it comes to my late inlaws' place in North Carolina - the value has pretty much gone nowhere over the course of 3+ decades. I would be wary of retiring and moving to an area with lots of land that can be developed. At least in terms of resale (if I cared about resale). Robyn
our real estate and market investments blew our homes out of the water in returns even after subtracting rent and taxes . .

but that will be both time frame and local market dependent , but non the less that is exactly what happened for us .
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Old 03-22-2016, 02:51 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 18,026,835 times
Reputation: 6724
Quote:
Originally Posted by freemkt View Post
But when you get old enough you do get the homestead exemption if you own your home, which beats not getting it if you rent.
Our homestead exemption in Florida (which has $ limits) is available regardless of age (I recall that we also have some additional tax breaks for low income seniors - but have never looked into them). Robyn
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Old 03-22-2016, 02:55 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 18,026,835 times
Reputation: 6724
Quote:
Originally Posted by Burkmere View Post
Agreed. To many it's a lifestyle choice, not a financial one. Mine was both. If I ever did own, I would make sure I'd always have a mortgage and I'd invest the difference, thus having a higher net worth plus liquidity. I'm more concerned about my financial well being than paying off my mortgage and not having the flexibility, liquidity, and higher net worth.
And then there are people like me - who haven't had a mortgage for decades. Even at today's low mortgage rates - I'm not sure I could regularly break even investing versus what I'd pay for a mortgage. Down the road I might look into a reverse mortgage if I wanted additional income (I don't know beans about reverse mortgages - don't need the additional income). Robyn
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