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That is my dilemma. Do I settle and buy a cheap house in a decent area I can afford (such as Centereach, Lake Ronk,) Or rent somewhere I really desire to be. (South shore between Oakdale-Blue Point) I wish I could own there as I feel like I would not be happy anywhere but the south shore, but my wallet does not agree. So frustrating. Right now I am leaning towards renting and being happier but I change my mind with the weather.
If you rented, will you be able to save money? If you can save money, how long till you can afford to buy into your #1 location. If it's only a few years to wait & save to achieve your dream, then do that. It's good that you know yourself that well, you need to work that out prior to buying anywhere. Even signing a lease requires a dedication to remain in an area.
imho Renting in a dream area is nothing like owning. Heck, renting and owning anywhere at all are two very different experiences. Say you go ahead and rent in your ideal location. Now, a year later you'd really like to redo the siding, or the bathroom. Will you sink many thousands into a home you don't own? Prolly not, so you'd have to settle for a house & property that's never going to be quite what you truly want.
Well I should have clarified that I would rent in a complex, not a private residence... And I am pretty much just obsessive over location, I probably wont mind renting somewhere I love as long as I am living comfortable. Not too picky with the actually place, as long as its clean and not too old. Yes I would love to own, but it doesnt seem to be possible in those areas.
Last edited by ydsavaged; 09-02-2011 at 12:49 PM..
Well, if you buy in a cheaper area and then want to move in five years you may very well take a substantial loss. If you worked to improve your house during those five years you might lose all that money on top of that. That would certainly be the case if you bought in the last five years also. Check out the taxes ands well as the mortgage interest you will be paying as an owner. IMHO at this point it is better to rent than to buy. Quality of life, right now, it would seem renters are at an advantage. One other point, renters can get up and go...a house in a declining market can be quite a drag/drain.
(And FYI the tax break for mortgage interest deduction is far less than the mortgage interest paid in the first place)
As a fun experiment go ahead and price a nice apartment in the area you really really want. Figure out your monthly cost (rent, utilities, maintenance, parking, cable, etc). Now look at a home in a neighborhood you really really want. Check out the monthly costs (mortgage, interest, taxes, utilities, repairs, upkeep, remodel, maintenance, etc). In an upswing market the ten year payoff might benefit the owner/seller...now its not even close.
Well, if you buy in a cheaper area and then want to move in five years you may very well take a substantial loss. If you worked to improve your house during those five years you might lose all that money on top of that. That would certainly be the case if you bought in the last five years also. Check out the taxes ands well as the mortgage interest you will be paying as an owner. IMHO at this point it is better to rent than to buy. Quality of life, right now, it would seem renters are at an advantage. One other point, renters can get up and go...a house in a declining market can be quite a drag/drain.
(And FYI the tax break for mortgage interest deduction is far less than the mortgage interest paid in the first place)
As a fun experiment go ahead and price a nice apartment in the area you really really want. Figure out your monthly cost (rent, utilities, maintenance, parking, cable, etc). Now look at a home in a neighborhood you really really want. Check out the monthly costs (mortgage, interest, taxes, utilities, repairs, upkeep, remodel, maintenance, etc). In an upswing market the ten year payoff might benefit the owner/seller...now its not even close.
This was the way i was thinking too. Renters do seem to be at an advantage now with the way things have been going. Thats why I am considering renting PERMANENTLY. I have done the calculations...and renting will be much cheaper and easier because of no maintenence/upkeep. Thank you for the lengthy response.
I still believe owning is better than renting if you are into it for the long haul. Besides, renters are basically leeches on long island..paying no taxes and using services. You want to own and have some skin in the game..dont be like those moaners and groaners on here that live in a rented hovel and do nothing but complain.
I agree owning is better long term....I can't imagine paying rent for the rest of my life when I could live in a house that's paid off (although I guess that seems like a pipe dream to many people nowadays).
I still believe owning is better than renting if you are into it for the long haul. Besides, renters are basically leeches on long island..paying no taxes and using services. You want to own and have some skin in the game..dont be like those moaners and groaners on here that live in a rented hovel and do nothing but complain.
I'll assume you are serious. Are you aware owners use rent payments from their tenants to apply to the tax bill? I would not recommend renting a hovel...again I assume you are serious. There has been some serious reconsidering of the rent v buy debate given the reality on the ground...and the fact that potential buyers are a bit more sophisiticated in calculating the costs of owning a house - and the risks associated with re-sale losses. As fun exercise, see what a neighboring house costs 20 years ago. My definition of a long haul. What were the costs associated with owning that house for 20 years (total purchase price in 1991 , interest payments over 20 years, property taxes over 20 years, home improvements over 20 years, repairs over 20 years maintenance over 20 years, etc etc) Factor in the interest deduction the owner got. Now look at what the house sells for in 2011. Subtract the total cost of the house from the selling price of the house today - is it a negative number?
Simpletons used to say "I bought my hose for 150 grand in 1991 and now I sold it for 400K...I just made 250K the best investment ever." Nobody says that anymore...as a start the simpleton probably spent over 150K in taxes and 75K in interest.
And pity the poor fool who spent 600K seven years ago and sells his house for 475 today....
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