Is Homeownership Even Worth It? (renting, home, dorm) - Massachusetts (MA) - Page 2 - City-Data Forum

City Guy997S · 10-17-2011, 06:57 PM

JustinRollo- Excellent post, very honest especially for a realtor!

Rent/Own part, if you actually get the property paid off it becomes an asset. Many retirees (pre-baby boomer of course) relied on having a free and clear home during retirement. Combined their retirement income/social security and low overhead (no rent/mtg) gave them a secure retirement. Today that is less likely for many......

I have never rented residential living space only commercial space and really counldn't imagine not owning a home (did a condo once, I learned it isn't for me). I got lucky on my first house and sold it after a remodel for 2 1/2 times what I paid for it (1996, way before the boom) and that set me up financially to buy subsequent homes. You should consider that home something that you could really depend on in future years. If your landlord is owning property (with your money each month) why not do it for yourself?

Also I think a 15 year mortgage is worth the stretch if you can afford it. A 30 yr payment is insane and really offers you no equity in the short term. Personally I would rather buy a cheaper place with a 15 yr note than spend the same money on a 30 yr note.

200K at 3.5% for 15 is $1429 for a total of $257,220
200K at 4.25 for 30 is $983 for a total of $353,880

So you save over $96,000 on a 200K loan by taking the shorter payment! To me the extra $446 a month ($111.50 a week) is easily found in a budget in order to cut the term in half. You will be very happy you did it when the payment book stops and you are living there for nothing!

Justin Sparks · 10-18-2011, 12:48 AM

Jeez. people just defend what they've signed onto. Worth is relative, seek your own counsel.

Bideshi · 10-18-2011, 01:08 AM

At the present time, all the factors favor renting. Job uncertainty, high and getting higher prop tax and insurance rates, and many other factors make it burdensome to own. Rent until the economy settles. The exception, of course, might be if you're absolutely sure you're going to stay in one spot the rest of your life, and have cash or fixed income to cover mortgage costs and misc. costs.

NotAPrincess · 10-18-2011, 01:18 PM

The condo vs. single family argument is completely location dependent. A condo in Coolidge Corner, Brookline is going to hold value better than a single family in Burlington. But a single family in Burlington is going to hold value better than a condo in Burlington. (of course, this is all a generalization).

But I agree with others that you need to compare apples to apples. If you're renting a 1BR, then compare your expenses to buying a 1BR. If you'd like to move up to a 2BR, then check out 2BR rents for comparison. And make sure you're comparing similar locations, too. If the monthly expenses end up being close to even, it might make sense to buy, but only if you've got some savings and only if you would actually enjoy owning and the responsibilities that it entails.

We owned two condos before buying our single family, first in a medium sized association (26 unit, prof. managed), and the second in a small association (3 unit). I disagree when people say that owning a condo isn't worth it because you don't even really own it. We made many improvements and had a lot of fun doing things to our condo that we couldn't have done if we had rented. Plus, we knew that we could stay there as long as we wanted (we got the boot from our old apartment when the landlord sold the building, and we hated being forced to move).

JustinRollo · 10-18-2011, 02:32 PM

Quote:

Originally Posted by Bideshi

At the present time, all the factors favor renting. Job uncertainty, high and getting higher prop tax and insurance rates, and many other factors make it burdensome to own. Rent until the economy settles. The exception, of course, might be if you're absolutely sure you're going to stay in one spot the rest of your life, and have cash or fixed income to cover mortgage costs and misc. costs.

30yr Fixed rates in the 3s and low prices both point to owning now as well as low interest rates on investment vehicles and an uncertain stock market. A big reason a lot of people point to rentals is that they can save money and use any savings from renting to invest in other vehicles. With low interest rates these vehicles aren't returning what they once did, hurting the case for renting.

You're correct that there are some negatives right now to buying but saying all factors point to renting isn't true. Its very much not black and white.

The bottom line to this whole thread is that there are pro's to both and negative's to both owning and renting. Its all about what you are looking for, each of us see this topic through our own lens, some will see factors that make buying seem risky, others see opportunity. Its a totally personal decision, in most cases its a question that can't be answered by anyone other than yourself.

JustinRollo · 10-18-2011, 02:33 PM

Quote:

Originally Posted by City Guy997S

JustinRollo- Excellent post, very honest especially for a realtor!

Thanks, I think, haha

City Guy997S · 10-19-2011, 05:58 PM

Quote:

Originally Posted by JustinRollo

Thanks, I think, haha

I was being sincere.......too many realtors relay information "through rose colored glasses" usually really rosy in order to close the deal!

ABC- Always Be Closing (Glen Gary, Glen Ross movie.....youtube it)!

JustinRollo · 10-19-2011, 08:27 PM

Quote:

Originally Posted by City Guy997S

I was being sincere.......too many realtors relay information "through rose colored glasses" usually really rosy in order to close the deal!

ABC- Always Be Closing (Glen Gary, Glen Ross movie.....youtube it)!

I know I know. I was just kidding around, thank you very much!

mdovell · 10-20-2011, 10:38 AM

I'd suggest going to patrick.net

I think it really depends in terms of what people want and how do they want it.
If you plan on having kids and have a job that has you stay in a given area (it's secure) then I'd say it should be worth it.

If you don't have kids and your work might be questionable on location then you might be better suited to rent.

If someone loses a job and they have a mortgage it would be hard to get out of it. If someone rents they can move more easily. If rent goes up or down you can shop for other rentals. It's much longer process to do that with a house.

You also have to keep in mind maintenance. Raking leaves and shoveling snow might not be that big of a deal for people in their 20's and 30's but I cannot picture someone in their 70's or older doing it (manually that is).

On the other side if you want to have a number of children I can't see having an apartment being that comfortable. I shared a room with my brother as a kid but it was just two of us. There are some things you just can't do as easily in an apartment. If they want to practice playing a musical instrument you can pretty much forget it with the neighbors.

I don't think that there is a absolute as it depends really what someone wants.

seeriously · 10-21-2011, 03:30 PM

I guess if you like having to ask permission to get a pet or hang a picture then home ownership isn't important. Letting your kids play in the backyard, parking your vehicle safely in your own garage, painting and remodeling as you see fit without permission... it all has to do with quality of life. To me, it's worth it.