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That was a great article. I'm a 1st time homebuyer & renting for 10 years. I have sticker shock when I realized how much more I have to pay now that I'm buying (double than my rent). I'm not buying to get rich or flip it since those days are gone. I'm just tired of living in a place with people on top of me and not being able to truly decorate.
But what the article doesn't point out is that rent goes up each year and a mortgage stays the same. This works out well for me, as I'm in corp. america and get raises each year. Renting basically kept me even, but imagine if I had bought 10yrs ago and factored in 10yrs worth of raises, I would be better off financially.
That was a great article. I'm a 1st time homebuyer & renting for 10 years. I have sticker shock when I realized how much more I have to pay now that I'm buying (double than my rent). I'm not buying to get rich or flip it since those days are gone. I'm just tired of living in a place with people on top of me and not being able to truly decorate.
But what the article doesn't point out is that rent goes up each year and a mortgage stays the same. This works out well for me, as I'm in corp. america and get raises each year. Renting basically kept me even, but imagine if I had bought 10yrs ago and factored in 10yrs worth of raises, I would be better off financially.
good points brandy. When I was younger renting was the best option for me, but now owning is better. It is not really financial, although i do try to maximize the value of my home, I just have other wants and needs that are better served by owning. If we could just stay in one home longer than 4 years it would be even better, but that doesn't seem possible lately.
The effects of acquisition cost and interest are gigantic, if you shop smart and then effectively manage down your term / rate it will have a huge difference.
That was a good article..
But...
I'll take the extra expenses of owning to have the freedom to have a dog or a cat, to not have to leave for an owner to show a property, to have new carpet or linoleum I choose, and so many reasons.
Also, if you live in an area that has an historically better than average appreciation rate, buying is the way to go from a strictly financial perspective, assuming you're staying for a few years at least. Of course, none of us has a crystal ball, so that makes it a tough call.
For example, if I were to lose my job, I'd surely have to move to another area, which is always a risk.
True, but (at least where I live), property taxes go up every year as does homeowner's insurance.
Fair point.
Plus, not everyone raises the rent. My neighbors are renters; they've lived there for 5 years and the landlord hasn't raised the rent once in that timeframe. Not sure how common that is though.
True, but (at least where I live), property taxes go up every year as does homeowner's insurance.
I don't know, I've lived in my house for 6 years, and my taxes are less now than when I bought it (and its worth at least as much still as I paid for it) I think my insurance has gone up $10 total over that time. My payment is actually $25 less than the first two years I owned the home.
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