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As I keep saying , as a landlord I wish I could have passed all my expenses to my tenants .
Markets don’t care if I paid thousands to Renovate , or paint or a new roof or furnace ,or even if I have a mortgage ....the local markets determine what I can get or else I can wait so long for a tenant that I lost all I hoped to gain.
Right now rents are falling as housing Costs are rising here..our building is advertising one month free now
Last edited by mathjak107; 04-21-2021 at 05:19 PM..
Its the same scenario for me with the house. Its affordable much more so than rent. Its just the thought of replacing roofs and the AC etc etc. Is what the problem is. Here in Florida because of hurricanes Insurance Companies force you to replace the roof. Even before it needs one at around 15 years. If it's not done they increase the premium hundreds of dollars, or canx you. Insurance here is outrageous. Many can afford the house but not the insurance. You can imagine how big the roofing business is down here. Its a racket. Same with the HVAC system. I've already replaced that. They tell you the whole system needs replacing, yet a new part could fix the problem. With so many seniors in Fla. You can imagine how many are taken advantage of. Seniors are nothing more than a source of income for Florida businesses. It's sad to see that.
I don't know what the answer is because rents are more than what I comfortably can pay or qualify for. What I have done and don't know how long I can do it. I went out and got a job 3 days a week. It gives me a cushion for these repairs that are sure to come up in Fla. I notice more and more seniors are returning to part time jobs.That is if they can find an employer to hire an older person. That's another problem in itself.
This is what I did too , I thought I retired from entertainment but went back . my youngest is a character actress so I had some connections thank the universe .. I have kept myself up well enough but at my age I am not exactly an ingenue :/ . I am making some decent money but I know like you, I am sure, its like I am working and probably WILL be for the forseeable future , I'd really rather go back to Europe than pay for this wildly overinflated AC . ( because it IS wildly overinflated ) I really struggle with it
Yes where I live the roof issue is the same way as yours . The community I live in has a similar thing about roof's ( is that a word ) in my case its the insane heat year after year . Yes its absolutely a racket and I hate to be on such guard ALL THE TIME about it too .
Quote:
Originally Posted by otterhere
Couldn't you still have a (small) container or raised garden on any apartment porch, deck, balcony, or rooftop?
Yes I could but its a really large part of my life , I've raised rare hibiscus for years ,palm trees and strawberries besides herbs that I sell and make saleable stuff with . I try to pick which ones I could live without , Some Ive had a long time and I am just very sad to let any go if I dont have too . I have been looking for a community garden plot but so far no luck . My house now has a townhouse sized yard so I dont have a very big yard now .
Last edited by DutchessCottonPuff; 04-21-2021 at 05:52 PM..
Well you're already inheriting a house right? Here in California, our property tax rate is locked in at initial purchase price, so actually my property taxes won't go up.
Rent in high demand places seem to always go up. As does housing. Heck, you live in Round Rock, you should know that. So, when you buy something in 1990, your mortgage is at 1990 prices, not 2021. Can't afford to pay your property taxes? You can sell the home for quite a profit. But again, mommy and daddy already took care of you, so not really sure what you're arguing about. You're the text book case of someone who home ownership has helped, even though you didn't actually pay a dime.
Also, when property taxes go up for apartments, guess who pays? Not the landlord......
You're like the other lady that's banging the rental drum......she happens to live in a rent controlled area. Well heck, in that case I'll rent too!!!
LOL? What ARE you talking about?
'Mommy and Daddy already took care of you'? Pray tell how? Neither has taken care of me since I was 18, nor had they assisted me when I purchased my first home a few years later. The home I'd be inheriting DOWN THE ROAD WHEN I'M IN MY SIXTIES was purchased by my mother as a single woman and when I inherit it, there will be a mortgage of $1500 plus taxes that I'd assume if I chose to continue the path of ownership.
Whatever benefits conferred upon me by homeownership is due to owning my own homes - as a single and married woman - paid for with our own funds not 'Mommy and Daddy'. And another thing, I said in this thread that homeownership is the path that I decided to take, almost from the get-go. I rented for a year once at 20 and then again when I relocated to Texas, again for one year. So twice in 46 years, for a total of two years. That doesn't mean that I don't see virtues in renting, whether I own a home now or will inherit a home in the future, or whatever. Moreover, I specifically said that at different points in life your opinion of renting can change.
I can't speak for California, because here in Texas there is no locked property tax rate. My taxes go up every year and will continue to do so until 65.
And duh, yes, I know that housing always goes up - but that isn't just the province of renting. That was my point. Your monthly payment (which is more than just a mortgage) as a homeowner isn't fixed and goes up incrementally as well. Whether it's 1990 prices or 2021 prices, it goes up.
I am banging the rental drum as you say because there are some advantages which I intend to use when I retire. That would be my plan regardless if I inherit a home or not.
As I keep saying , as a landlord I wish I could have passed all my expenses to my tenants .
Markets don’t care if I paid thousands to Renovate , or paint or a new roof or furnace ,or even if I have a mortgage ....the local markets determine what I can get or else I can wait so long for a tenant that I lost all I hoped to gain.
Right now rents are falling as housing Costs are rising here..our building is advertising one month free now
As I keep saying I wish as a landlord I can pass my costs on to tenants .
Well as you see rents in nyc are now in free fall as they plunge lower and lower ...markets don’t care what a landlords costs are anymore than a stock cares for what you paid for it
Can you not do a triple net lease with a residential tenant? Hahaha. I bet you wish right? That’s how it goes with our office buildings, which I sometimes forget. My accountant said CA raised the property taxes more than expected when we closed on these deals, and I thought wow that’s awful so there goes my ROI. He reminded me, nah, just sucks for the companies leasing the space because they’ll just have to pay more, not our problem. They should have triple net leases for regular renters lol
And generally, in desirable areas, rent goes up. Actually, cost of ownership goes up as well.
Yes, though I will say even here in high tax NJ, it is still cheaper to pony up the taxes on a home than pay rent. Average rent is $1,400/month (higher in Northern NJ...more like $2K if not more). That's over $16K/year. The average property tax is $9K/year. The mortgage is locked in at the purchase price and will eventually go away just leaving you with the property taxes...rent will never go down unless you incur the expense and inconvenience of moving to a lower priced rental. My family and colleagues living in paid off homes paying crazy property taxes are still better off than the average renter. Even if still paying a mortgage, still much better off.
Yes, though I will say even here in high tax NJ, it is still cheaper to pony up the taxes on a home than pay rent. Average rent is $1,400/month (higher in Northern NJ...more like $2K if not more). That's over $16K/year. The average property tax is $9K/year. The mortgage is locked in at the purchase price and will eventually go away just leaving you with the property taxes...rent will never go down unless you incur the expense and inconvenience of moving to a lower priced rental. My family and colleagues living in paid off homes paying crazy property taxes are still better off than the average renter. Even if still paying a mortgage, still much better off.
Our kids are in jersey in the cedar grove area .
they pay 13k in real estate tax in New Jersey , and paid about 600k for the house .
If my wife and I were going to rent in that area being we are retired we wouldn’t be renting a house though , we would rent an apartment for 1600-1800 or so ...
Just taxes and maintenance on our sons house would be more than the rent and if I was in the position of selling my home in retirement or liquidating investments to drop 600k on a house I would sooner invest it , rent and generate almost 33-35k a year INFLATION ADJUSTED.
That would pay our rent , pay for a load of living expenses and we would likely end with more than we started .
So depending on situation and stage of life there are alternatives that can work out better than sitting with a house you no longer even need once the kids are out.
That is a very different situation than someone with No assets to sell or invest who has had nothing amassed there whole lives ,if they relocated and just rented ...they are two totally different outcomes
Last edited by mathjak107; 04-24-2021 at 08:59 AM..
they pay 13k in real estate tax in New Jersey , and paid about 600k for the house .
If my wife and I were going to rent in that area being we are retired we wouldn’t be renting a house though , we would rent an apartment for 1600-1800 or so ...
Just taxes and maintenance on our sons house would be more than the rent and if I was in the position of selling my home in retirement or liquidating investments to drop 600k on a house I would sooner invest it , rent and generate almost 33-35k a year INFLATION ADJUSTED.
That would pay our rent , pay for a load of living expenses and we would likely end with more than we started .
So depending on situation and stage of life there are alternatives that can work out better than sitting with a house you no longer even need once the kids are out.
That is a very different situation than someone with No assets to sell or invest who has had nothing amassed there whole lives ,if they relocated and just rented ...they are two totally different outcomes
$13K in taxes is still less than the $20K/year you would pay in rent. You are also paying more for less (house/yard vs. condo/apartment). What exactly do you mean by maintenance? Of course owners aren't replacing their roofs and HVACs every year. Spreading out those occasional large expenses over time is still much less than rent. Lawn maintenance, gutters, etc...peanuts compared to rent.
You also have more to save and invest with the extra monthly cash flow that isn't getting tied up in rent. At the end of the day, we all need shelter and that basic need is guaranteed while market returns are not. I would rather keep this non-discretionary expense as low as possible and owning will often be the best route to do so.
Most people aren't looking to drop $600K on a house at retirement...they're living in a paid off house.
$13K in taxes is still less than the $20K/year you would pay in rent. You are also paying more for less (house/yard vs. condo/apartment). What exactly do you mean by maintenance? Of course owners aren't replacing their roofs and HVACs every year. Spreading out those occasional large expenses over time is still much less than rent. Lawn maintenance, gutters, etc...peanuts compared to rent.
You also have more to save and invest with the extra monthly cash flow that isn't getting tied up in rent. At the end of the day, we all need shelter and that basic need is guaranteed while market returns are not. I would rather keep this non-discretionary expense as low as possible and owning will often be the best route to do so.
Most people aren't looking to drop $600K on a house at retirement...they're living in a paid off house.
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
Last edited by mathjak107; 04-24-2021 at 05:12 PM..
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