Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hmmm, I have skimmed the postings, but not actually read them ALL I admit, but I still get the gist of the conversation and see most postings seem to be on target.
We just bought a new home. Prior to this we lived in an {our} owned mobile home {for many years] on a rented lot. OUR mortgage is only slightly above what the lot rent was. SO it is almost as cheap as the lot rent.
Also,the mortgage is LESS than the rent would be on this house, if we were to rent it, and in most cases almost as cheap as, or less than renting an apartment.
So...why wouldn't we buy?
I don't consider it a "luxury item"...I consider it basic shelter at a reasonable price.
And just like the mobile home, or any vehicle we ever bought on credit, this house will be paid for LONG before the 30 year note due date. Like in 5 or 10 years at the MOST. and then the taxes-only payment will be so affordable we can't afford NOT to. {Like $150/month and we are in expensive taxed state}. CAN't beat THAT for a housing cost/payment.
The ONLY block to owning a home is:
A] lack of good credit by paying one's bills responsibly;
B} lack of effort to save a Down payment;
C} and lack of adequate income to afford said house, AFTER a reasonable down payment.
ANY ONE of these can be adjusted by hard work and a willingness to MAKE owning a home a reality.
One just has to have true grit and the ability to "git 'er done"....
You are ignoring all the other costs of owning a home...
Well now you have a goal. Get your education, a good job, work hard, save and buy a house. No matter what anyone says, we are not entitled to our own house because we exist. I don't know about most people but I couldn't afford to buy a house when I was young either.
People who believe they are entitled will never own much of anything or will make bad financial decisions.
In a free market, everyone is entitled precisely to what they can afford.
Hmmm, I have skimmed the postings, but not actually read them ALL I admit, but I still get the gist of the conversation and see most postings seem to be on target.
We just bought a new home. Prior to this we lived in an {our} owned mobile home {for many years] on a rented lot. OUR mortgage is only slightly above what the lot rent was. SO it is almost as cheap as the lot rent.
Also,the mortgage is LESS than the rent would be on this house, if we were to rent it, and in most cases almost as cheap as, or less than renting an apartment.
So...why wouldn't we buy?
I don't consider it a "luxury item"...I consider it basic shelter at a reasonable price.
And just like the mobile home, or any vehicle we ever bought on credit, this house will be paid for LONG before the 30 year note due date. Like in 5 or 10 years at the MOST. and then the taxes-only payment will be so affordable we can't afford NOT to. {Like $150/month and we are in expensive taxed state}. CAN't beat THAT for a housing cost/payment.
The ONLY block to owning a home is:
A] lack of good credit by paying one's bills responsibly;
B} lack of effort to save a Down payment;
C} and lack of adequate income to afford said house, AFTER a reasonable down payment.
ANY ONE of these can be adjusted by hard work and a willingness to MAKE owning a home a reality.
One just has to have true grit and the ability to "git 'er done"....
Millions of Americans would SAVE money by buying, but they cannot buy, so they continue to pay up the wazoo to rent.
You are ignoring all the other costs of owning a home...
And your point is?
NO, I am not really.
The cost of owning a mobile home has repair/maintenance cost too. Didn't we know it.
The cost of a vehicle is usually quoted in the payment per month or cost layout in cash, NOT the costs of insurance, maintenance, repairs, etc. too.
Same Same.
Besides, for example, in our case, the roof won't need replacing for 25 years, so the fact the house is paid for in about 5 years, leaves 20 years before that cost is required to replace it. Vinyl siding and windows means pretty much little to no cost for those. The driveway is new so it won't need but annual sealing. So did the mobile home roof need sealing every 4 years, and the heat tape need replacing every 4 years.
If the cost of owning a home is LESS than renting, there is room there for the "extra costs" and most are rolled into the mortgage {taxes, insurance, PMI if needed}, and when paid for the payment of taxes and insurance and maintenance are nil comparatively to the mortgage/rent payment if the home is taken care of.
I still do not think it is a"luxury" to own a home. That is the point of this thread.
The cost of owning a mobile home has repair/maintenance cost too. Didn't we know it.
The cost of a vehicle is usually quoted in the payment per month or cost layout in cash, NOT the costs of insurance, maintenance, repairs, etc. too.
Same Same.
Besides, for example, in our case, the roof won't need replacing for 25 years, so the fact the house is paid for in about 5 years, leaves 20 years before that cost is required to replace it. Vinyl siding and windows means pretty much little to no cost for those. The driveway is new so it won't need but annual sealing. So did the mobile home roof need sealing every 4 years, and the heat tape need replacing every 4 years.
If the cost of owning a home is LESS than renting, there is room there for the "extra costs" and most are rolled into the mortgage {taxes, insurance, PMI if needed}, and when paid for the payment of taxes and insurance and maintenance are nil comparatively to the mortgage/rent payment if the home is taken care of.
Depends on the age of the house, how well the previous owners treated it, and also on absolute price ranges - a $500k house probably doesn't cost 10x as much to maintain as a $50k house.
My point is that the mortgage being less than rent does not by itself necessarily mean that owning is a better deal. You can only conclude that owning is a better deal when you look at the other stuff too. Even then, we are not properly treating the capital expenditure. To really be fair, we must subtract the principal payment and any tax benefit but add back in the opportunity cost of the down payment with respect to an alternative investment of similar risk level.
In other words, run the numbers, including all the costs.
Depends on the age of the house, how well the previous owners treated it, and also on absolute price ranges - a $500k house probably doesn't cost 10x as much to maintain as a $50k house.
My point is that the mortgage being less than rent does not by itself necessarily mean that owning is a better deal. You can only conclude that owning is a better deal when you look at the other stuff too. Even then, we are not properly treating the capital expenditure. To really be fair, we must subtract the principal payment and any tax benefit but add back in the opportunity cost of the down payment with respect to an alternative investment of similar risk level.
In other words, run the numbers, including all the costs.
And the same argument applies to cars.
Whatever, you see it your way, I see it mine, and that is the beauty of free speech and forums like this,
I STILL don't see it as a "luxury item". It is reasonable to own, then if one works to make it happen,it will happen.
Perhaps you are a 'perma-renter" who believes renting is best. I DON'T . SOrry. Haven't rented in years, and won't ever again, except maybe while trying out a retirement possiblity.
AND ANYONE, with a willingness to work for and towards it, can own a home reasonably.
Oh, and I am NOT talking about buying A DUMP that WILL be a money pit. That IS unreasonable.
Whatever, you see it your way, I see it mine, and that is the beauty of free speech and forums like this,
I STILL don't see it as a "luxury item". It is reasonable to own, then if one works to make it happen,it will happen.
Perhaps you are a 'perma-renter" who believes renting is best. I DON'T . SOrry. Haven't rented in years, and won't ever again, except maybe while trying out a retirement possiblity.
AND ANYONE, with a willingness to work for and towards it, can own a home reasonably.
Oh, and I am NOT talking about buying A DUMP that WILL be a money pit. That IS unreasonable.
I did not say renting is always best. I said run the numbers.
Whatever, you see it your way, I see it mine, and that is the beauty of free speech and forums like this,
I STILL don't see it as a "luxury item". It is reasonable to own, then if one works to make it happen,it will happen.
Perhaps you are a 'perma-renter" who believes renting is best. I DON'T . SOrry. Haven't rented in years, and won't ever again, except maybe while trying out a retirement possiblity.
AND ANYONE, with a willingness to work for and towards it, can own a home reasonably.
Oh, and I am NOT talking about buying A DUMP that WILL be a money pit. That IS unreasonable.
500 grand for a house in the bay area is literally a worn down 1950s ranch house.
And then you pay sky high taxes. No wonder it gets run down. After the mortgage and taxes no one has money left to maintain the houses
Baby boomers who bought them in the 60s for 15000 dollars pay like 1000 a year in taxes.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
