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No one has mentioned aesthetics. One reason i own my home as a retiree is i need to surround my self with the colors and textures i prefer. And to indulge in a few horticultural whims outside. It’s a drawback to renting.
Same here. As a a long-time gardener I need to be able to plant whatever I want in my yard. I just had a 3-tiered waterfall and pond installed just outside my back porch that provides endless pleasure. If I wanted a similar view by the river in our city I couldn't afford the apartment or house rent.
I am temporarily relocating for work, and planning to use this as an excuse to sell my house in CA. I have reached the realization that I just have zero desire to be a homeowner. I have spent SO much money and time on this house, but it's never good enough; I always see something else that could be improved, updated, or fixed. I dislike dealing with contractors and repair people. I love the idea of not being invested in a property and just calling the apartment office if something needs to be fixed.
Has anyone else reached the same realization, and what were your reasons? How do you explain this to your family? I am expecting some pushback from my parents for renting when I can technically afford to own a home, but just don't want the hassle.
If you think homeownership is expensive, try renting. All those repairs and taxes would not be 'free', either. They are simply absorbed into rent increases.
I can understand not wanting to buy if you are not going to be in an area for long, but I don't understand it from the point of view that it cheaper (it is not).
As a widow there are many days when I do not care for being a homeowner. Since my house is older, something always needs to be done and I have to prioritize the most important things. But on the plus side I have my own large yard and it's fenced so my dog has freedom and I don't have to listen to noisy neighbors or smell their cooking.
Now as I get older I might consider a condo or a townhome but for now I would be paying $400-$600 more a month to rent something comparable to what I already have. And my house is an asset for when I do sell down the road.
Assuming you are still in SW FL, your rent would be closer to $ 1400.00. Not sure where you are getting $ 400 - 600. Maybe for a mobile, but with lot rent it would still come to around $ 1400.00.
Sources like Rich Dad claim the money could be better used for investment purposes, and a house is a liability because it doesn't make money for you.
I agree with this in theory, but in practice homeownership is forced savings. Most people who rent use the savings on lifestyle enhancements like buying new cars, dining out, vacations etc.
Few have the will or the discipline to invest wisely. And even if they did, the investments could fail to pan out. I read somewhere that people who own their homes have a higher net worth than renters.
This isn't a value judgment, and homeownership works for me. I have a friend who's a longtime renter, and he doesn't spend his weekends working on his place. He definitely has more fun.
I am temporarily relocating for work, and planning to use this as an excuse to sell my house in CA. I have reached the realization that I just have zero desire to be a homeowner. I have spent SO much money and time on this house, but it's never good enough; I always see something else that could be improved, updated, or fixed. I dislike dealing with contractors and repair people. I love the idea of not being invested in a property and just calling the apartment office if something needs to be fixed.
Has anyone else reached the same realization, and what were your reasons? How do you explain this to your family? I am expecting some pushback from my parents for renting when I can technically afford to own a home, but just don't want the hassle.
Here’s one really big thing to consider. If you sell your property, and depending on where you are in California, it’s a big state, you can make a ton of money. But you said this is a temporary move. What if you have to come back? Don’t just think about right now, consider your future. And I don’t know where your parents are, but that might be a part of the consideration also. As they get older, you might have to be there to help.
Your rent could be really really high, and it might be almost impossible to re-purchase a house here. If those conditions are doable, go for it. There’s not a law in the world that says that you have to own a home. The one thing you do need is a good savings plan. When you own a home there is somewhat of a forced savings going on that you can cash out when you retire. You need to do that on your own. Depending on how old you are it’s very doable.
Humans are social creatures. If we do an unconventional thing, a thing that gets panned as being "irresponsible" or contrary to accepted wisdom, we'll feel anxious and will question our personal judgment. And yes, the approval of others, matters. If it didn't, there wouldn't be a fashion industry. Women would have far less reason to wear make-up, and men would have far less reason to lift weights.
Quote:
Originally Posted by Eeko156
If you think homeownership is expensive, try renting. All those repairs and taxes would not be 'free', either. They are simply absorbed into rent increases.
Economy of scale. It costs $X to repair one dwelling. It doesn't cost $10X to repair 10 dwellings. That's a savings both to the tenant and the landlord.
Quote:
Originally Posted by Tallysmom
Here’s one really big thing to consider. If you sell your property, and depending on where you are in California, it’s a big state, you can make a ton of money. ...
My rent currently in this part of California is less than it would have cost me in property tax and insurance, on a house bought outright for cash. The only gain via ownership would be from capital appreciation... a bit fraught and doubtful, as of the spring of 2021. Indeed, I have suspicions that in 2025, residential housing here, will cost less, than it does today. Cycles! We'll see...
Last edited by Marka; 04-08-2021 at 12:37 AM..
Reason: removed orphaned quote
If you think homeownership is expensive, try renting. All those repairs and taxes would not be 'free', either. They are simply absorbed into rent increases.
I can understand not wanting to buy if you are not going to be in an area for long, but I don't understand it from the point of view that it cheaper (it is not).
When I was a landlord I wish I could just pass all my expenses on in rent ...but markets don’t care if you have a mortgage and those landlords offering apartments don’t .
Markets don’t care about your new roof or replacement of the furnace...all you can get is What markets allow.
I learned early on when I bought my first coop to rent out in the 1980’s ....as a new owner I was only at break even when I counted depreciation..so I tried raising the rent from 800 to 825 ..my tenant left and because so many other apartments were under 800 I lost a months rent and had to roll the asking rent back anyway
If I could do it all over again, I would have rented instead of buying houses. I think of all the money I could have put into a savings account and I wouldn't be living below the poverty line now in my 60s. Oh but, I did not have children or long term partners to deal with either. I was spending what seemed double the money I would have if I had rented instead.
I advise my nephews and nieces not to buy houses, to cherish their freedom as long as they can but that desire for ownership is pretty strong as I remember.
Renting I don't have to pay for repairs: plumbers, HVAC, electrical, appliances. Nor do I have to take up my free time with yard work. Rent increases are paltry in comparison to paying those repairs yourself. Your free time and peace of mind is more valuable. Less stress/pressure by not wondering where your next payment to bank is going to come from for the duration of the amortization period. That's a long time to be under pressure.
Humans are social creatures. If we do an unconventional thing, a thing that gets panned as being "irresponsible" or contrary to accepted wisdom, we'll feel anxious and will question our personal judgment. And yes, the approval of others, matters. If it didn't, there wouldn't be a fashion industry. Women would have far less reason to wear make-up, and men would have far less reason to lift weights.
Economy of scale. It costs $X to repair one dwelling. It doesn't cost $10X to repair 10 dwellings. That's a savings both to the tenant and the landlord.
My rent currently in this part of California is less than it would have cost me in property tax and insurance, on a house bought outright for cash. The only gain via ownership would be from capital appreciation... a bit fraught and doubtful, as of the spring of 2021. Indeed, I have suspicions that in 2025, residential housing here, will cost less, than it does today. Cycles! We'll see...
And I live in San Francisco bay area. My house payment is $284, and I can rent this place out for 2500. Two months rent would cover my property taxes plus. That’s why everybody has to run their numbers, because numbers rarely lie. And only you know your numbers. My numbers are going to be different than your numbers. What makes sense for one person does not make sense for others.
If I could do it all over again, I would have rented instead of buying houses. I think of all the money I could have put into a savings account and I wouldn't be living below the poverty line now in my 60s. Oh but, I did not have children or long term partners to deal with either. I was spending what seemed double the money I would have if I had rented instead.
I advise my nephews and nieces not to buy houses, to cherish their freedom as long as they can but that desire for ownership is pretty strong as I remember.
Renting I don't have to pay for repairs: plumbers, HVAC, electrical, appliances. Nor do I have to take up my free time with yard work. Rent increases are paltry in comparison to paying those repairs yourself. Your free time and peace of mind is more valuable. Less stress/pressure by not wondering where your next payment to bank is going to come from for the duration of the amortization period. That's a long time to be under pressure.
I guess it depends on your situation. I have way more peace of mind owning than rental. No worrying about rent increases or having to move because the landlord decides to sell. Worth every penny IMO.
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Solly says — Be nice!
