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I live in a cheap 1-br apartment and have no plans to stop. It's a lifestyle choice. I don't have a yard to take care of, continual maintenance issues that go along with owning a home, the lack of flexibility of home ownership, neighbor issues, higher utility costs, etc. If I start encountering problems with the apartment, I can just find another complex at the end of the lease. If I find a new job in a different city, I can simply pay the early-termination penalty of a month's rent and be done with it.
Then there are condos which suck. You're at the whim of a condo board which can become incompetent and then you end up suffering financially. They also can jack up the condo fees and levy special assessments, and you just have to put up with it or move somewhere else (possibly selling at a loss and you have to pay the realtor's commission). Condo buildings, like apartments, can become run down over time which will negatively affect the value of your condo. You also have the inflexibility of home ownership and condos often take a long time to sell. Also, if you have a loud and obnoxious neighbor, what can you do about it? It's not like you can complain to an apartment manager.
I agree, I also rent but in an apt attached to a house. I don't think I would want to live in a complex or apt. building. Just look at the renting forum here, every other thread is "Loud upstairs neighbors driving me crazy" or the like.
I may buy a house someday, if I can find a small one. Meanwhile I am happy to pay my rent and electric while the LL takes care of everything else.
I live in a cheap 1-br apartment and have no plans to stop. It's a lifestyle choice. I don't have a yard to take care of, continual maintenance issues that go along with owning a home, the lack of flexibility of home ownership, neighbor issues, higher utility costs, etc. If I start encountering problems with the apartment, I can just find another complex at the end of the lease. If I find a new job in a different city, I can simply pay the early-termination penalty of a month's rent and be done with it.
Then there are condos which suck. You're at the whim of a condo board which can become incompetent and then you end up suffering financially. They also can jack up the condo fees and levy special assessments, and you just have to put up with it or move somewhere else (possibly selling at a loss and you have to pay the realtor's commission). Condo buildings, like apartments, can become run down over time which will negatively affect the value of your condo. You also have the inflexibility of home ownership and condos often take a long time to sell. Also, if you have a loud and obnoxious neighbor, what can you do about it? It's not like you can complain to an apartment manager.
Pro choice is the best choice. Be happy with what you do and don't worry about anyone else or how they choose to live.
All those condos fees get passed onto the tenant. It's good that you like to rent but if you know you're going to stay put where you are, then you should buy.
Condo fees or taxes or lawn service or fire district or schools or utilities or whatever else...
all the various expense categories that might apply get added up under the heading of 'housing costs'.
This is just as true renting or buying - if is obliged to be paid in order to own/live there.
Quote:
It's good that you like to rent but if you know you're going to stay put where you are, then you should buy.
Only if/when the total of those 'housing costs' make sense relative to net income.
(Gross less the save/invest and less the Tax/SS = Net)
But yeah... if the total housing cost is low enough and you KNOW you're sticking then sure try to buy.
Well, assuming you have the responsible down payment & the other closing funds required in that calculation.
(The median home value in Los Angeles is $686,100; a 20% DP = $137,000.)
Last edited by MrRational; 06-02-2019 at 04:52 AM..
All those condos fees get passed onto the tenant. It's good that you like to rent but if you know you're going to stay put where you are, then you should buy.
what does not get passed on to the tenant is the loss of potentially a few hundred thousand dollars that is now tied up in the apartment and no longer generating as much income or growth elsewhere...
we can buy a co-op like our apartment and costs would run 6k less .. but we would give up a minimum of 15k at the least in income on the money we would spend ... cash flow would suffer a lot vs renting where we have zero tied up
what does not get passed on to the tenant is the loss of potentially a few hundred thousand dollars that is now tied up in the apartment and no longer generating as much income or growth elsewhere...
we can buy a co-op like our apartment and costs would run 6k less .. but we would give up a minimum of 15k at the least in income on the money we would spend ... cash flow would suffer a lot vs renting where we have zero tied up
The only way it doesn't make sense is if you have a crystal ball and know the housing market is going to tank in the near future.
Not true at all ,this has nothing to do with the housing market crashing ...it is the fact if I buy instead of generating a minimum of 15k a year that money is tied up in equity where it does me no good as far as cash flow ..
You need to look at the entire picture .... sure buying cost less then my rent , 6k less a year ... but that almost 400k spent on buying will leave us with at least 15k less in income.. we will give up at least 9k in cash flow and likely way more.. sure it would improve a bit with a mortgage but the interest will eat in to that difference
Buying is a great lifestyle choice too as long as you buy housing as a shelter and not to impress people.
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