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Old 01-03-2018, 03:21 PM
 
Location: on the wind
7,173 posts, read 2,948,182 times
Reputation: 24265

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Quote:
Originally Posted by Fadskier View Post
We live in Texas and I seriously doubt we’d move out of state. It will kind of depend on our children. One will never move back to Texas as he likes cold weather. Our other two children will most likely remain in Texas. I’ve looked at some nice apartments with garages and a 2 or 3 bedroom will run us about $1,200-$1,400 per month. If buying, in addition to 20%Down, a $200,000 house will be about the same monthly.
If your monthly expenses are about the same and you can dial in things like property taxes and budget for future repair bills, are realistic about what maintenance you will be willing or able to do for the next few years, consider that the house becomes an asset you didn't have before. You could borrow against it, sell in future to fund something (like buying into assisted living), or leave to your kids.

Of course, if you buy too much house, one that's not in great condition, in a less-than-great area, and you don't really have much interest in maintaining property, it might not pay off for you long term. There are non-monetary reasons to own a home too but only if you have those interests. Not everyone does.

If you are renting, there is no asset other than what you continue to save or invest.
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Old 01-03-2018, 04:21 PM
 
4,508 posts, read 2,126,120 times
Reputation: 9532
Home ownership is for the young. I bought my first house at age 28. After buying up 3 times, I am now renting at age 73. I wouldn't go back to home ownership for all the tea in China. It's so nice to let someone else worry about everything.
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Old 01-03-2018, 04:23 PM
 
13,942 posts, read 7,429,050 times
Reputation: 25448
Quote:
Originally Posted by AZDesertBrat View Post

You might consider buying a multi-family or duplex and using the rental income to offset a chunk of your mortgage, taxes, and maintenance. That's not for everyone.


I seriously considered doing that, and living in one of the units. My parents had rentals for many years so I know what is involved but am still sorry, at times, that I didn't. However, I have to say that I'm not at all sorry I bought my house even with all the maintenance involved. As long as I can afford it! It's still WAY cheaper than rent, plus everything else, here. Don't plan on selling. That will be my kids 'problem' when I'm gone!
If I were income-limited, a duplex is the way I'd go. You only have one wall shared and you have the option of using sand-filled concrete block in that wall to kill any neighbor noise.

I went with a small house on a small lot, fully remodeled it to my taste, and zeroed out the small mortgage. Even if I run out of money, 15% of my Social Security check would cover taxes, insurance, and utilities. I know I'll always have a roof over my head.
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Old 01-03-2018, 04:25 PM
 
Location: Philadelphia/South Jersey area
2,879 posts, read 1,408,105 times
Reputation: 10108
So I just moved from NJ which has some of the highest property taxes in the nation, I have never had a "spike" in rent to come remotely close to the hikes in property taxes. When I finally said enough, my property taxes where close to 1,000 bucks a month. lol so the so call "spike in rents" would really have to be outrageous imo.

My current home that I own will be the last I ever own and I plan on selling it in a few years. I also have a big house so I could downsize

I'm simply sick of having to take care of a property.
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Old 01-03-2018, 04:36 PM
 
1,068 posts, read 519,442 times
Reputation: 1824
Quote:
Originally Posted by Fadskier View Post
We live in Texas and I seriously doubt we’d move out of state. It will kind of depend on our children. One will never move back to Texas as he likes cold weather. Our other two children will most likely remain in Texas. I’ve looked at some nice apartments with garages and a 2 or 3 bedroom will run us about $1,200-$1,400 per month. If buying, in addition to 20%Down, a $200,000 house will be about the same monthly.
Id never do it in Texas. Property taxes are too high, which probably keeps appreciation down also.
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Old 01-03-2018, 04:36 PM
 
71,706 posts, read 71,829,507 times
Reputation: 49273
i agree .compared to rent increases the tristate area property taxes have been seeing insane jumps .

it has been a renters market for a while as for whatever reason rents have lagged costs of ownership .
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Old 01-03-2018, 05:22 PM
 
3,156 posts, read 5,196,708 times
Reputation: 1770
Quote:
Originally Posted by Cabound1 View Post
Id never do it in Texas. Property taxes are too high, which probably keeps appreciation down also.
Texas allows individual counties, municipalities, and school districts to provide homeowners age 65+ additional exemptions off the appraised value, plus a tax freeze. And many of those taxing entities do just that. That freeze can really reduce taxes relative to current appraisals as the years go by. The result is many 0ver-65 Texas homeowners pay significantly lower property tax on a principal residence, than do under-65 homeowners.


A landlord isn't eligible for those exemptions, even if the tenant is over 65.
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Old 01-03-2018, 08:27 PM
 
12,026 posts, read 5,142,014 times
Reputation: 18867
Renting leaves you vulnerable to being kicked out at the whim of whoever owns the house you're in or apartment. When your lease is over all they need to do is give you a 30 day notice and you are forced to move. To me, that's like having a dark cloud hanging over me. I HATE moving and with my own house, I can do with it what I please. I will never get a 30 day notice to move and never have my payment increased by hundreds per month from one year to the next.
Owning instead of renting is stability for me. That's not a big deal to some people but it is for me.
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Old 01-03-2018, 08:44 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,628 posts, read 39,998,659 times
Reputation: 23785
If staying in TX.... (rents are high, properties low priced) I would buy the best cash flowing income property you can afford. (Does not have to be your home.. might be a commercial prop.. auto shop, tire shop... non- internet erosion)....). This gives you an inflation hedge and huge tax benefits. + tenants are paying OFF your investment

Then rent wherever you like! Tahiti? France?

Free to move / travel ... move near kids... move overseas...
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Old 01-03-2018, 10:24 PM
 
Location: Tennessee
23,614 posts, read 17,598,460 times
Reputation: 27693
I have a small mortgage here in TN. Renting a similar unit would be about double what I am obligated for on mortgage + COA fees. That's $500/month. While that's small change compared to most of the posters here, that's a significant amount for us in Middle America.
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