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So, maybe someone out there can shed some light for me ...
To begin with the housing market has proved to be unfriendly and unpredictable so lets agree for a primary residence, no one is getting rich in investment.
The only really heavy tax/fee (whatever verbage you choose) is property tax in NH. Unless I am reading it wrong, a 500k home in a typical Southern NH town is about $1000 monthly in property taxes.
I am finding some decent rental homes on websites for 2500-3000 monthly (that look close to what would sell for 400-500k and would escape the property taxes, costs of maintaining/repairing a home, etc, etc and just rent.
I have been overseas for a while but the places in the States I have lived in, normally homes were very cheap and so were property taxes, so it was sort of no-brainer to buy ... I am curious, why buy?
Last edited by bavariantransplant; 08-03-2012 at 02:08 AM..
The only really heavy tax/fee (whatever verbage you choose) is property tax in NH. Unless I am reading it wrong, a 500k home in a typical Southern NH town is about $1000 monthly in property taxes.
oh I dunno... 8.5% business tax feels pretty high to me as self-employed. thankfully there is a minimum, and I'm not the main income bringing in the household! but an awful lot of people in NH are self-employed...!
Quote:
I have been overseas for a while but the places in the States I have lived in, normally homes were very cheap and so were property taxes, so it was sort of no-brainer to buy ... I am curious, why buy?
how long have you been overseas? things may have changed. I know our taxes in Greenville are about the same as our taxes in MD - well, town taxes. Then in MD we have county taxes and then state income tax.... Some places are cheaper, some more expensive. It depends on a lot of things. In NH, it depends on how many people are in the town to cover/incur the expenses adn what all they feel they need to pay for. Inflation has send the costs of everything up - except, at the moment, the cost to buy the house.
Why buy a house? some people don't want to have landlords hanging over them, want to be able to do what they want with their house/land, and if you own it, you may build equity which you certainly won't if you rent. You'll pay the taxes even if you rent, it will just be included in the rent so you won't get a separate bill.
The only really heavy tax/fee (whatever verbage you choose) is property tax in NH. Unless I am reading it wrong, a 500k home in a typical Southern NH town is about $1000 monthly in property taxes.
I am finding some decent rental homes on websites for 2500-3000 monthly (that look close to what would sell for 400-500k and would escape the property taxes, costs of maintaining/repairing a home, etc, etc and just rent.
I have been overseas for a while but the places in the States I have lived in, normally homes were very cheap and so were property taxes, so it was sort of no-brainer to buy ... I am curious, why buy?
Want to pay less property tax? Buy a less valuable home.
Renting doesn't offer an escape from taxes or cost of maintenance. Those costs are included in the rent. Judging by the look of the rental properties in my neighborhood, I'm sure some (most) landlords neglect maintenance altogether even on fancy $500K homes. Rent can go up unexpectedly. Or the owner can decide to sell the house.
Why buy? Some people desire the independence of doing what they want to their property. Some look forward to finally paying off that mortgage and owning the home outright. Some may even want to pass the property off to children. These are all long-term situations.
Short term home ownership sort of baffles me though.
Owning a home means you've got equity. Renting is akin to simply taking that $800-$3000/mo. you spend on rent and lighting it on fire. 'End-game' with buying a home means it's yours outright. With renting, there is no 'end-game'.
With owning a home you have the freedom and ability to do what you want in it/out of it (within reason and within HOA guidelines, though why anyone would live in an area where other people get to dictate what YOU do with YOUR home is beyond me, but that's for another day...)
If I wanted to plant a garden or a tree on my property, I do it. In a rental, there's no chance of me having a garden/yard. Heck, if I want to hang up a potted plant, I get to ask if it's okay to screw a hook into the eave.
To each their own though -- myself, the monthly rental check is the worst check to pay out -- it's money that is simply gone with absolutely no return whatsoever.
Most of my friends and family that "own" their houses pay $1000 to $1500 in mortgages with their taxes escrowed in that price.
Most of my friends and family that lease their houses pay $1000 to $1500 in rent.
To me it's a no brainer. If your here for the long haul you can buy your own place or buy one fot the landlord.
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