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Old 04-24-2021, 07:04 PM
 
Location: Orange County, CA
1,123 posts, read 289,877 times
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I've had the home ownership experience and it was good investment. Now I just want to be a lodger, live in a service apartment, maybe bnb. Something that comes with cleaning and breakfast would be good.
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Old 04-25-2021, 07:47 AM
 
12,455 posts, read 6,807,007 times
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Another factor is the current real estate bubble; I've been looking for my dream retirement home for several years now, and can't help but notice that prices have literally doubled since COVID. How I wish I had bought one of *any* of the many properties I considered, but I was waiting to retire and travel to be able to see it in person first. Oops! So I may have to get used to either staying put (in my paid-off house) or renting elsewhere until it's a buyer's market again, hopefully in a few years.
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Old 04-25-2021, 09:08 AM
 
Location: Florida
8,231 posts, read 14,199,658 times
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Quote:
Originally Posted by otterhere View Post
Another factor is the current real estate bubble; I've been looking for my dream retirement home for several years now, and can't help but notice that prices have literally doubled since COVID. How I wish I had bought one of *any* of the many properties I considered, but I was waiting to retire and travel to be able to see it in person first. Oops! So I may have to get used to either staying put (in my paid-off house) or renting elsewhere until it's a buyer's market again, hopefully in a few years.
Yes the prices have gone up. Which I found odd considering Covid and shutdowns this past year. i bought last year in a Retirement Community in Florida, and I'm amazed what houses are going for this year, What is more amazing is the sellers are getting their price for the most part. Each month I get a flyier from the Real Estate office here in the community, looking for homes to sell as the inventory is so low. There are 3500 homes in this community and currently there are only 5 homes for sale. That is very unusual in a large senior community, because there is always turnover for the obvious reasons. Seem now when a house goes up for sale its sold within a week or two. That's the power of the internet in today's Real Estate World.
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Old 04-25-2021, 02:46 PM
 
1,203 posts, read 463,056 times
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Quote:
Originally Posted by mathjak107 View Post
And 20k is still less than the 35k inflation adjusted the 600k can spin off forever that I wouldn’t reinvest in a house again and that 600k would still be growing too

So you aren’t looking at the whole financial situation
And neither are you. You would not want to plunk $600,000 down. Leverage is a positive tool for real estate. What was that $600,000 house selling for 5-10 years ago?
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Old 04-25-2021, 03:04 PM
 
91,724 posts, read 89,054,137 times
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We already argued about the fact there is not a enough risk premium for a balanced portfolio to take a mortgage at this point..I am not arguing it al over again.

Buying is way more a month once we include the tied up dough sucking away even more cash flow for us.

We ran the numbers over and over .. renting and leaving everything else as is is a better deal for us

Last edited by mathjak107; 04-25-2021 at 03:33 PM.. Reason: Have
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Old 04-26-2021, 02:28 AM
 
1,203 posts, read 463,056 times
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Originally Posted by mathjak107 View Post

We ran the numbers over and over .. renting and leaving everything else as is is a better deal for us
I never said that buying was better in all markets. But is is generally way better if you are in a high appreciation market where subsidized rent is not available. Or if you are in flyover markets but then the prices are so cheap that it is worth it to own just for the convenience at such a low cost.

And I can agree that if your only income is from the stock market you are probably better a renter since you are at the mercy of the market. But isn't that why smart investors plan for multiple "stools" in their retirement income?
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Old 04-26-2021, 09:39 AM
 
Location: OC
9,799 posts, read 5,766,470 times
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Quote:
Originally Posted by GoldKona View Post
I never said that buying was better in all markets. But is is generally way better if you are in a high appreciation market where subsidized rent is not available. Or if you are in flyover markets but then the prices are so cheap that it is worth it to own just for the convenience at such a low cost.

And I can agree that if your only income is from the stock market you are probably better a renter since you are at the mercy of the market. But isn't that why smart investors plan for multiple "stools" in their retirement income?
Right. And again, if you're in a "rent stable' situation, sit tight I guess. But if someone were smart enough to buy when they're 22, they could logically be done with the mortgage by 37. Now, if you're a great investor and you can turn that 100k into 1 mil, wonderful. But, owning a home isn't a bad thing in most cases.
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Old 04-26-2021, 12:10 PM
 
893 posts, read 793,065 times
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Originally Posted by Eeko156 View Post
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).
I read something once that made a lot of sense. If your rent is $2k/month, that's the max you'll pay that month. If your mortgage is $2k/month, that's the minimum you'll prob pay that month. There is always - always - something that needs to be done to a house. New fence, roof, appliances - something always needs fixing. So I do think that ultimately renting is cheaper. Of course this is not factoring in increased equity. I just bought a house last summer and already spent about $20k in various things. But then again, according to a couple of real estate sites, our home value has increased by about $170k (very hot area of PNW). So I still think I'm in the positive on this.
My previous house I just sold, I had to put in a new roof, new fence, new flooring, added a deck and AC. Those were prob all the most expensive things but there were many, many more costs. However, I sold at a $300k profit within 5 years. So that did help offset the cost of ownership.

Before this, I had a condo which was super low maintenance. I spent close to nothing on upkeep and sold for a $200k profit (but that took 10 years)
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Old 04-26-2021, 12:43 PM
 
1,203 posts, read 463,056 times
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Originally Posted by Gaylord_Focker View Post
Right. And again, if you're in a "rent stable' situation, sit tight I guess.
Funny some of the rental supporters argue that a house ties you down but if you are in a subsidized rental situation you are tied to that property. At least as a homeowner you can sell or rent the property out.
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Old 04-26-2021, 12:47 PM
 
91,724 posts, read 89,054,137 times
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There are costs to get out either way .selling can trigger all kinds of costs


On the other hand look at our tenants ...we paid 7 out of 9 tenants 100k to break their lease so we could get them to go and we could sell .


My ex wife had to break her lease shortly after we got divorced ...an attorney got her out of the lease and the development was not able to bill her for doing so because of the way it was done .

So again you are trying to come up with things that may or may not apply across the board.

It takes only a few bucks in many cases to break any lease but as an owner without a buyer you have no idea when you will or can sell.

A very poor argument here for owning
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