Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Even if I could do the latter, after all the headaches I've had with roommates reneging on their part of the bills, not sure I would want to deal with that mess any more. Chasing people over and over for money is no fun. If this is what I aspired to do, I'd be working in a collection agency call center, not grad school in physics!
First you have to be able to afford the home on your own, a roommate is not required it's just extra income. If they become a problem you can tell them to go or evict them. Plus you have to be careful who you let into your home by doing a background check. You can afford to be picky when you don't need a roommate.
Telling a story on myself: at one point, my son really wanted a fancy new diesel pickup. He did all of his research to get exactly what he wanted.
When he told me how much the truck payment would be, I said,"for that same amount of money, you could be making a house payment." So, he thought about it and bought a house instead of the new truck.
Everyone gets to decide what they spend their money on, but there are a lot of people out there who could make a house payment with the money they are spending on things that don't last.
When I was working, I kept getting asked how come I could afford to buy real estate and the person who was earning a bigger paycheck couldn't. I'd reply, "I don't go out to eat and I don't buy a lot of new clothes, and I don't buy the newest electronics or jewelry, or pay to have my hair done every week."
I'd always get the same answer. In a sort of flat voice, they would say, "oh." and walk away. Not one of those people ever did buy their own house and they still went out to dinner and out clubbing, and were fashionably dressed. Their choice, but not many people have enough income to do both. So you choose: one or the other.
This is so true... the difference for his son and for me is we had someone respected lay out the options.
I grew up around the car business that my grandfather started... he would discourage my friends from buying too much car starting out... some appreciated the advice and others became annoyed... they wanted what they wanted and didn't want to hear otherwise.
If you can limit reoccurring expense on depreciating items you are half way home...
Don't get me wrong... if it wasn't for tenants I would be out of business... for 30 years my tenants... even Section 8, drove better cars than I did as the building owner.
Many folks measure the cost of renting vs. owning as just the mortgage vs. rent. In fact, owning costs much more than that. Homeowners also have to pay for home insurance, property taxes, HOA fees, maintenance, trash service, oftentimes lawn care, and sometimes other expenses like pool maintenance, burglar alarms, etc. . . So cost comparisons are not as straightforward as one thinks. Here, it's generally cheaper to own than rent, but I still think owning is overrated. Property taxes are ridiculously expensive here, and of course homeowners don't have the ability to easily move. And one cannot underestimate the peace of mind you get knowing that the landlord is responsible for most repairs, not you. One of the most common repairs homeowners here need is foundation repair, and that can easily cost $10,000 or more.
I've met some that own and it has cost them dearly... they are easily swayed and spend money frivolously or are ill-informed... most I know are single women with a few men in the mix.
One of my co-workers said she was getting rid of her nightmare house... she did spend a lot of money and paid top dollar for things.
One was her dream landscape with a pool... I bet when all was said and done she had spent about what the home cost over 6 years... new roof, new floors, new kitchen, new baths, pool, new gas fireplaces, new HVAC... none of the above was broken or in bad shape and except for the pool... everything else was existing.
I think all the home improvement guys had her number and her decision was based on how much the monthly payment would be.
Renting is a valid life phase option, but seldom an optimal lifetime lifestyle unless you have rent control or a life estate or something similar, such as below-market rent from family.
Many renters don't have the luxury of someone giving them money for a down payment; nor do they have sufficient capital to maintain the property.
Saying that buying is the way to go may work for some, but everyone's situation is unique and some are not able to buy. It has nothing to do with a person being a loser if they rent (not inferring you made that statement, just saying in general).
If someone is fortunate and can purchase, that's wonderful! Hopefully that individual won't stand up and declare that renting is a losing game. . . that is an insult and very rude (and comes off as bragging).
With owning, think about all the weekend hiking, surfing, or skiing you cannot do because the house needs you.
Even just restricting yourself to NON-FINANCIAL arguments, there are pros and cons of renting versus owning. Personal preference and individual/family circumstance, not blanket rules, dictate the net consideration.
Most of my neighbors are old to really old... one passed recently at 104 and most are 85+ and have lived in their homes 50 or more years.
Their home is their life... the garden, the way it looks, having room for all the kids to come for visits...
I've convinced it keeps them young... the lady across the street was always doing something in her yard... people would often comment on how beautiful it was and asked who her gardener was... they were shocked when she said does it all herself... almost an acre like a park.
My Grandmother and Mom stilled mowed their lawns and pruned the fruit trees into their 80s with push mowers...
What some see as endless drudgery... others see as a labor of love... their is not right or wrong answer other to say here in California many of my neighbors pay about $100 a month in property tax as did my sellers... the day I bought in went from $100 to $750...
PS... no snow or ice issues to deal with and almost no one has A/C as the climate here is very mild...
Telling a story on myself: at one point, my son really wanted a fancy new diesel pickup. He did all of his research to get exactly what he wanted.
When he told me how much the truck payment would be, I said,"for that same amount of money, you could be making a house payment." So, he thought about it and bought a house instead of the new truck.
Everyone gets to decide what they spend their money on, but there are a lot of people out there who could make a house payment with the money they are spending on things that don't last.
When I was working, I kept getting asked how come I could afford to buy real estate and the person who was earning a bigger paycheck couldn't. I'd reply, "I don't go out to eat and I don't buy a lot of new clothes, and I don't buy the newest electronics or jewelry, or pay to have my hair done every week."
I'd always get the same answer. In a sort of flat voice, they would say, "oh." and walk away. Not one of those people ever did buy their own house and they still went out to dinner and out clubbing, and were fashionably dressed. Their choice, but not many people have enough income to do both. So you choose: one or the other.
Poor Americans do not buy houses. (That is a feature, not a bug.) For them, frugality will not make the difference between buying a house and not being able to buy a house.
once you comitt financial suicide there is no coming back from the financially dead . it only gets worse . the poor man ends up buying lower quality goods because that is all they can afford and eventually as they say the poor man pays twice for many things .
Renting is a valid life phase option, but seldom an optimal lifetime lifestyle unless you have rent control or a life estate or something similar, such as below-market rent from family.
As explained a million times on here, that's not necessarily true.
Being a single, 40 something empty nester..the best choice for me is renting. Since I'm by myself, it simply isn't logical for me to spend a fortune on housing. I live in California, where the cost of a home is indeed..a King's ransom. And yes, I'm well aware of the fact that by renting, I'm basically paying off some other guy's mortgage. My best friend who works in the mortgage industry, brings this to my attention weekly...and her boss.
My reasons are..
No cost to me if something major breaks down. For example a water heater.
I live in an apartment so there are no water or garbage bills.
I love to get out and about, so I can spend more money on a car or travel.
No property taxes
No costly yard maintenance, or having to remove trees if they become a nuisance to neighbors or come dangerously close to falling on to the neighbor's roof.
I can move easily if I want to.
No homeowners insurance to worry about.
But for the cons...
If you want to paint or remodel, you have to get the owner's permission, and why would you spend money fixing up someone else's place?
No large yard, but if I had one...I would have to get permission like a child to have backyard "toys" like pools or firepits.
I'm also a single person without a family or children. Renting makes the most sense, particularly since I prefer living in metro areas near anemeities. Besides, the only way I would sell a house is when I croak. And everything I put into that house would be gone at that point. It's much better for me just to shell out cash for a couch to sleep on while I'm out and about enjoying life. Typically I'm away from my home more than I'm in it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
