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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.
I said $400-$600 more a month than what I'm paying for my mortgage.
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.
Your landlord takes care of the yard work? It's one of the reasons I wouldn't want to rent a house where I live. Most landlords expect you to cut the grass, trim, etc. That's my least favorite part of owning a home and this summer I hope to hire someone to do it for me from now on.
I love renting in our building ..we have full time maintenance men ...everything is done by them ...
We even have an indoor heated spot and all the driveways to the street are plowed ...our housing is transparent to our lives ....there are no chores to waste time on.
My wife is here 40 years ...I am here going on about 16 or so ...
We sold our second home in the poconos ..way to much work every time we went .constant maintenance and expenses .....
I dislike noise so I know renting is not for me. I need absolute quiet to sleep, and I sleep only 4 hours a night so it’s important to me to get that 4 hours. I Hate smelling other peoples cooking. I just don’t enjoy having to make small talk, when running into someone in an apartment community.
So for me living in my own house keeps my sanity and I enjoy each day,
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.
Whether a house is a good investment or a money pit, really depends on where the house is. Just like a stock can earn you money or lose you money, depending on which one you buy.
For houses in, say, small city in the north east or mid-west, where population is flowing out, I will agree houses are money traps. But OP is in CA -- one of the markets with fastest growing home prices. I will say it is definitely a good investment.
In CA property tax and maintenance pretty much eat up the rental income. However, home prices increase about 6-8% annually on average. Home price increase is where homeowners make their money.
To me here are the biggest reasons for homeownership:
1. Preferred lifestyle (owning your own place = being your own boss)
2. Money-making potential (if you don't go this route then the alternative is pretty much just stocks and bonds)
3. Ease of management (compared to managing a stock portfolio)
4. Forced saving (some people do need this)
Yes, I agree it would depend upon one's own situation.
For me, there is always worry of a foreclosure lingering in the background. "What ifs".
Why is that different than worrying about eviction? Actually, it's less to worry about. If you end up foreclosed on you can always rent, and hope you can explain your circumstances to the LL. If you're evicted you're going to the bottom of the heap as far as the rentals available to you.
To me here are the biggest reasons for homeownership:
1. Preferred lifestyle (owning your own place = being your own boss)
2. Money-making potential (if you don't go this route then the alternative is pretty much just stocks and bonds)
3. Ease of management (compared to managing a stock portfolio)
4. Forced saving (some people do need this)
You forgot about a big reason: Homeownership may be cheaper than renting. This is the case in my area. I was able to buy a cheap fixer for cash, so my actually carrying costs for the basics (taxes, utilities) is dirt cheap, under $500.
Sometimes a house becomes a money pit based on the hopes and desires of the buyer. This house had a dated kitchen, sloping floors and cracks in the stucco. None of these problems interfered with my ability to live here.
As I have HGTV ideas, I wanted the luxury renovations and high ceilings, hence it became a money pit.
The worst place to park r.e. money, IMHO, is high tax areas like NY. Typical $12K a year in taxes on a small, old house to me is a money pit that only lets you stay in place.
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.
I currently own a home in a metro, high COLA. But taxes just keep going up (as do HOA fees). In a year, my daughter graduates from high school and she plans to go off to college. Then, I will no longer have any ties to this area. I only stayed here because it's close to her dad/so she could remain close to him while growing up. I bought a house here 11 years ago because I thought buying a house and building equity was the smart thing to do. But it is a lot of work and there can be unexpected costs too.
I plan to sell my house next May and move back home (rural/farm area). I telecommute so I can keep my job which is nice because it pays a salary for a HCOLA--for where I live, I make less than average, but for wear I am moving, I will earn a good salary.
But for a while I will neither rent nor own. My mom has Parkinson's and needs help around the house (inside and out). The Parkinson's is affecting her memory too, mildly right now, nothing alarming, but in time she will need more help in that regard too. She's wants me move in and stay with her to help and for the company. I will live there rent/mortgage free, but I will pay half the household bills, groceries, and that sort of thing and help her out around the house. This also allows me to pay for my daughter's college too as it frees up money that would have gone to my mortgage payment and HOA fees (a total of $2300 a month). I have $35K saved up for her for college, but that's not enough for four years--it's more like a year and a half of tuition and room and board at a state school. Because her dad isn't helping, I was facing the prospect of stopping my retirement saving in order to pay for college if I still had my current housing expenses. And college kids can't borrow enough in loans on their own to pay for a college... I either help pay or cosign or she doesn't go to college.
Anyway, I have no idea how long I will live with mom, but when she passes away, I will need to do something. And that's where I am considering renting vs owning. I am wondering if I will stay in my mom's house (buy out my brother of his half of the inheritance), sell with my brother and find another place to own, or sell and find another place to rent. Mom's house is big, on a lot of land, and it's a lot to maintain. I am not sure if I want all that as a single woman (who will then be nearing retirement). The idea of all that maintenance is daunting. I thought about maybe buying in an over 55 community that way I don't need to worry about lawn care, snow removal, and the like. Or maybe I want a condo near the shore. I have a lot of time to think about it, but I am naturally a planner and I am thinking about it now, not in depth, just in general.
I reluctantly became a homeowner a decade ago. I love where I live, and renting was too uncertain as I have pets and work from home and prices were skyrocketing. Homeowning is a hassle, but renting can be the same if you have a crappy landlord.
I'm never going to be priced out of my home. I'm never going to have to deal with a landlord. My house looks the way I want it to (but messier). If I move elsewhere, I will probably buy again and brace myself for the hassles that come with home ownership.
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