being a "real" adult--renting vs. buying

[Koale]

Originally Posted by zilam98

my coworker just posted: "We are joining the adult world as new Homeowners!!!"

so, if you're just living in a rental property, despite having really good credit, earning at middle class income or above and supporting immediate families/relatives, you're not a "real" adult?

Just post back...'Good luck with that'.
Koale

[ndcairngorm]

Originally Posted by zilam98

i've seriously considered a condo for those reasons, but my partner is more into a traditional house with a small fenced in yard. we do have 5 pets, three of them enjoy being out in the back patio time to time to enjoy the sun.

when owning a condo, do you still have to pay county/city/federal taxes on that?

also, rental fees vs. costs of owning a home (mortgage and interest fees, taxes, HOA fees, etc)--does it all even out when deducting the home ownership fees from taxes and the amount of returns you get compared to the rental fees?

Hi Zilam98, yes, a condo is treated like a house by the city or county authorities, is given an assessment just like a separate house, and gets charged taxes which are to be paid directly by the condo owner.

Every situation is different when figuring out of pocket costs. With a rental in the US, you pay your rent and your utilities and that's usually it. With a condo, sometimes the water, sewer, and garbage collection are included in your monthly assessment and sometimes not. It pays to check that part out. In the United Kingdom, for instance (for another viewpoint) renters have to pay the city real estate tax on their apartment as well as the rent, so that's a difference from in the US.

When interest rates were high in the US, it was often more economical to rent and leave all that cash (if you had it and didn't need a mortgage) earning interest. Nowadays the interest you can get on your cash is bugger-all, not to put too fine a point on it. Therefore, you could figure you might as well have it invested in something wherein you might get a return on your investment if you decided to sell, namely, a house or condo. Mortgage holders have a different equation: how much are you paying as interest on your mortgage vs. how much will you be able to deduct off your income tax (if you take deductions) on that interest.

So all that is secondary to the "how much a month is this really costing me" question. When you buy a house, you have to be ready for the A/C to go out, the roof to need replacement, the toilet to leak because a pipe broke in a winter freeze, etc.etc. (Don't forget here, inside your condo, it's all your own stuff. If your fridge goes out, you replace it, etc.) It's a gamble - I pay $100 (or $200, or $300) a month maintenance fee on a condo I buy which will take care of the big stuff, vs. how much do I think I need to put by every month in case one of the above catastrophes happens on a house I buy. You might get lucky and have to do nothing for 10 years. That would probably be because the house you bought was new. With an older place, better be ready.

[HokieFan]

IMO, homeownership often comes with its own set of financial and physical responsibilities that renters are exempt from. Perhaps they view taking on these responsibilities as a milestone in adulthood.

I do not think you should view it as a slight, OP. It sounds as if you qualify for being an adult as well.

[Volvo Driver]

Originally Posted by zilam98

my coworker just posted: "We are joining the adult world as new Homeowners!!!"

so, if you're just living in a rental property, despite having really good credit, earning at middle class income or above and supporting immediate families/relatives, you're not a "real" adult?

First of all, I'm sure that post was basically a joke.

Anyway, my wife & I were adult before we started buying houses.

That said, sometimes we have to have a thick enough skin to not automatically be offended by everything.