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I enjoy owning - maintenance, upkeep, etc. although it can be a hassle at times, I would say it is less of a hassle than most landlords. Monthly rents are way higher in my area than my current mortgage. As MikeJ said earlier I do want to own something free and clear when I retire to reduce the income needed and obtaining that while paying less per month makes it a no-brainer for me.
We don't regret owning. People asked why we bought since we weren't going to live in the area for "a long time." It didn't matter to us. We don't have children, and our salaries were too high to not have any tax write-offs.
I didn't mind renting either. I had decent landlords for all of my apartments. But my preference is to own some sort of property or land, whether you live in it or not.
I have rented a town home, then bought a single family home, then rented a single family home in 2 different locations and now I am buying a single family home again.
Having the flexibility to move when you want (pretty much) is a great thing about renting. However, when you you rent you may be forced to move as well.
Obviously homeownership is less expensive than renting. Landlord's rent because they make a profit from it. The house we are buying is significantly better than our rental and payment are only $50+ a month more. Yes, I understand I have maintenance now as well.
By far the best thing about renting is that if something breaks, you can call someone and they come and fix it without charging you for it.
When owning you don't have to deal with a landlord. Most landlord's are no problem, but some are a real pain.
When you rent your rent can significantly increase at the end of your lease. Your landlord knows they have you over a barrel. They have your deposit and know you will need to have cash to get into a new place.
I see the benefits of each. I keep hearing rent is increasing due to the number of people not wanting to or able to buy a home. This places a higher demand on rentals which increases rental rates. We are buying a home that we plan on being our forever home. We have kids so they need the stability.
#1: absolutely worth it in every way. Bought in 2000, sold in 2004. Loved living there as a newlywed (1BR condo in Boston). Made minimal upgrades over the years and still made a killing when we sold it.
#2: not really worth it. We were looking for a bigger place to start a family but chose poorly both in layout and location. Nevertheless, lived there for almost 7 years (have a 3 year old now) while making very minimal changes to the place as it had been newly renovated when we bought. Sold this spring for a slight loss (when transaction costs are considered) and feel pretty lucky we didn't lose more.
#3: Hopefully will be worth it. Just purchased home in suburb of Boston. We're hoping this is the "forever" home.
In comparing renting vs. buying, it's almost impossible to do an apples-to-apples comparison in the Boston area if you have kids. For us, renting was just not a possibility because it's so hard to find a good rental with kids because of lead paint laws. Realtors literally hang up on you when you call to ask about apartments and they find out you have a child under 6. The only rental options are newer construction apartment complexes which are very sterile and boring, not to mention expensive. Single family rentals are few and far between, plus tend to be in somewhat less desirable towns.
For example, to rent a 3BR/2BA townhouse in a new (lead-free) complex in a town with good schools: 3500-4000/month. To buy a 3BR/2BA home in the same town might be 600-700K. I feel like often when people do the rent vs. buy calculation they are talking about singles or couples renting an apartment vs. buying a condo. With kids though, there are soooooo many other considerations.
My situation is different. I don't think I want to own a home mainly because I don't plan on having any children and therefore I don't need the space. But if I see a nice loft for sale, I'd consider buying it.
Question: Was/Is it worth it to own a home?
Meaning, time spent with up-keep, repairs,costs etc......?
Would you do it over again?
Like some of the posters have stated so far, it depends upon the individual and what works for them. If you enjoy renting, then it doesn't matter what us homeowners think because you have to do what is best for you.
For the past 12 years, I've owned a condo, which I've lived in for six years and have been renting out for six years (while I lived overseas and traveled the world). I bought it below market during the last recession and have been extremely happy with the decision due to the fact that it pays for itself and gives me a little extra income every month.
With that said, I do not want to own another condo (don't like the high association fees), and plan on selling this one when the price goes up one day (I see it as a retirement investment). I have recently purchased a small home and am excited about the prospect of having a little place to decorate as I please (as I grew tired of living overseas and am now ready to settle down permanently). The bottom line is that I would rather build equity and pay my own mortgage, rather than rent and pay someone else's mortgage.
Keep in mind that newer homes tend not to require a lot of up keep. It's the older, fixer uppers that can drain your bank account.
The financial benefit of owning a home is having more of a grasp on your cost of living going forward. If inflation plays a part, you still pay the same amount in mortgage (or own the home outright). Whereas rent could go through the roof.
This is a very important point that people do not understand.
For us home "owning" was a 23 year financial black hole. I will never buy again unless I am absolutely certain we will not relocate, and the payment including tax and insurance is no more than renting. House prices are still way too high.
As has been pointed out, when this happens and you are renting... the costs are passed on (By the homeowner) to the renter...
Enjoy.
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