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I personally don't like apartment and condo living because I don't like to share walls with people due to the noise and odor factors, I need to have my own space to garden, hang out, let the dogs run, etc., I dislike the fees associated with condos, and when I've paid money for rent I felt like I had nothing to show for it when I moved, so buying a home was a no brainer for us. I have friends who hate yard work and home maintenance, want lots of amenities at their doorstep, and enjoy the freedom to move and travel without constraints, so apartment living suits them. My parents prefer a condo because they have no outside work, a great location, and very little to maintain or worry about. You need to determine what is best for you and go with it. Best wishes.
Great post and I agree, whats with people that have HUGE dogs in a condo community? If you wanted a huge dog to play with you should've bought a house...cant afford a house? Get rid of the dog. Its that simple. I live in a townhouse now because some of the above things you mentioned (no yard work, easy maintenance, etc).
This is where the rent vs buy argument comes into play. Not only do you need to decide what type of housing you are looking for, but also other facts such as how long you plan on staying there etc... I have a new friend at work that moved from NYC a few months into a rented apartment but does not like the area. Luckily for him it was only a 6month lease. I think in new resident situations, renting short term is the way to go so you can "check out the area" and get familiar with places you see and like.
This question comes up often all over the forum here but there really is no right answer as this is so person specific. It all depends, this is why I detest the realtors that just default to "its the right time to BUY NOW!", for them when is it NOT the right time to buy? LOL Not all realtors are like used car salesman though.
Honestly, I have friends who live overseas, and even when we visited, we never met anyone, and I mean anyone that took "pride in owning a home".
Owning a home is just a normal thing people do; there's nothing fancy about it. To make it such a myth is ridiculous at best.
Maybe it could be considered an "accomplishment" for someone who's been in trouble somehow, but other than that I literally see ho reason to find "pride in owning a home"! I work, I make money, I buy a house when I need to. What's the big deal?
But I fully agree with your post because it sure seems like fewer people take into account the cost of owning a home; most people get hung up on the downpayment, or the mortgage but forget all the monthly bills attached to it.
In my opinion everything "else" should fall into place before committing to a mortgage like jobs, schools, acceptable commute etc.
Quote:
Originally Posted by MeInDenudinFL
The premise of the OP question is flawed. I explain why.
It says rent it $1800 but buying (assuming only mortgage) is $800 WITH down payment.
If you want to compare, the cost should be calculated buying with 0% down (just for looking at the math).
Second, cost of ownership is way more than mortgage. Chi put his mortgage at 40% compared to his total ownership cost. I am close to that too, even doing some of the stuff myself like doing the lawn and taking care of my swimming pool.
On the ownership side, you can then deduct mortgage interest and taxes using your marginal taxes, which itself is a function of many variables. Then you need to compare the mortgage interest you pay versus your market return if you were to put the difference in market, say, for 30 years when you sell the house or move on. Then you need to account the transaction cost, if you have to sell the house. It is not as easy as it seems doing the calculation from pure financial point of view. How much money you want to put on the frequently mentioned "pride of ownership and I can do what I want with my house" versus "I can move to anywhere I want if a job relocation comes with out problem"?
Most people who have done all these calculation end up finding renting is a better bet from pure financial gain point of view than buying. I say these owning home. You better come up with other criteria on comparing those two than only finance to make the case for buying.
Having said all these, still it make sense to rent for a few month and work your way to a sound decision whether it is renting or buying.
Does it not occur to you that "posters opinions" come from THEIRexperiences? why do you think it is "OK" to minimize other people's experiences? This is a message board for EXCHANGING opinions & experiences! Otherwise why are people coming here and ask all sorts of questions? or in this case "opinions" about buying versus renting?
Share experiences yes!
To condemn anyone who thinks different no!
How can you possibly determine what is best for others, give your experience then zip it, let the OP apply your shared insight with his situation.
Does it not occur to you that "posters opinions" come from THEIRexperiences? why do you think it is "OK" to minimize other people's experiences? This is a message board for EXCHANGING opinions & experiences! Otherwise why are people coming here and ask all sorts of questions? or in this case "opinions" about buying versus renting?
Share experiences yes!
To condemn anyone who thinks different no!
How can you possibly determine what is best for others, give your experience then zip it, let the OP apply your shared insight with his situation.
It's no wonder usually it's the same posters cause any new people get run off from the constant negativity and general depressed viewpoints.
Well I certainly didn't mean to cause such a storm...
Thanks all for the replies.
Here's a bit more info: We have lived in KY for 20+ years and are ready to get out. After selling our home, and paying all the usual expenses of that, I believe we'll net around $80K to use for a downpayment and other costs of purchasing a home.
We are committed to the next 8 years generally in the St. Pete area. Possibly longer.
We'll be moving 1K miles from a 4 bedroom, 2.5 bath & 2 car garage full of stuff, plus a dog. A decent sized place to live is a must - we have lots of stuff and storage is an expense we would rather not have. A 2 car garage is a must. A place that takes dogs is a must. Hence why I was looking at renting a home that was at least 1800 sq ft that allows pets.
A simple comparison of rent vs buy gives me $21,600 in rent for a year vs an estimated $1200 per month for mortgage, tax and insurance is $14,400 per year (1800 sq foot home, $215K with $65K in down payment). That's $7,200 in my pocket rather than someone else's. And we would still have to have renters insurance on top that I have not factored in.
I get the idea of knowing your area before you buy. The question is: Is it worth $8k?
The calculator posted by housingcrashsurvivor suggests that after 2 years buying a home is the better option, just fyi.
Last edited by kab0906; 12-13-2013 at 07:18 AM..
Reason: bad math!
How can you possibly determine what is best for others, give your experience then zip it, let the OP apply your shared insight with his situation.
No one in here is "determining" the OP's situation, or what's best for them. However, from experiences our friends or family have had we should inform them of all sides of that story and they can make up their own minds.
Which should make anyone wonder why we try to overrate a place that makes so many miserable!
Quote:
Originally Posted by bavariantransplant
It's no wonder usually it's the same posters cause any new people get run off from the constant negativity and general depressed viewpoints.
Why would you discount all costs associated with homeownership?
We're not arguing the numbers here; on paper yes, of course if your mortgage which includes both insurance and taxes is $800, then a rent of $1800 might seem out of this world useless to pay...and if that cost is your only concern, (or you can't get past it), then buy a house...no need to wonder further. I would never buy somewhere I am not familiar with MY personal opinion.
We were only trying to point out that in Florida, St. Pete, Tampa etc, areas go from ghetto to nice within 2 streets over...if you are willing to take that risk then this whole thread is a moot point.
You guys lived in KY for 20 years...how many trips did you take to FL to see how things are/look here?
Quote:
Originally Posted by kab0906
Well I certainly didn't mean to cause such a storm...
Thanks all for the replies.
Here's a bit more info: We have lived in KY for 20+ years and are ready to get out. After selling our home, and paying all the usual expenses of that, I believe we'll net around $80K to use for a downpayment and other costs of purchasing a home.
We are committed to the next 8 years generally in the St. Pete area. Possibly longer.
We'll be moving 1K miles from a 4 bedroom, 2.5 bath & 2 car garage full of stuff, plus a dog. A decent sized place to live is a must - we have lots of stuff and storage is an expense we would rather not have. A 2 car garage is a must. A place that takes dogs is a must. Hence why I was looking at renting a home that was at least 1800 sq ft that allows pets.
A simple comparison of rent vs buy gives me $21,600 in rent for a year vs an estimated $1200 per month for mortgage, tax and insurance is $14,400 per year (1800 sq foot home, $215K with $65K in down payment). That's $7,200 in my pocket rather than someone else's. And we would still have to have renters insurance on top that I have not factored in.
I get the idea of knowing your area before you buy. The question is: Is it worth $8k?
The calculator posted by housingcrashsurvivor suggests that after 2 years buying a home is the better option, just fyi.
Owning a home, or any real estate, is an investment in yourself. Paying rent is making someone else's investment pay off. Sure, there are crashes in the housing market, there are crashes in the stock market too. Doesnt stop investors.
I agree that owning or renting is a case by case person by person situation. If you are new to an area it makes sense to rent while settling in to the new lifestyle. Once it's decided that you're staying for a few years, then home ownership is the best way to go.
Some people say "the monthly bills". Yes, you pay for your water, sewer and trash as an owner.
As an owner you pay property taxes and mortgage interest. You are responsible for maintaining the property as well. However, your investing in yourself and not the landlord.
Its nice to come home to a place and know it is yours and you can do anything you so desire with it.
Except in HOA scenarios where you can only do what you want inside...Watch out for CDD's too; Tampa is full of them.
Quote:
Originally Posted by Spring Hillian
Owning a home, or any real estate, is an investment in yourself. Paying rent is making someone else's investment pay off. Sure, there are crashes in the housing market, there are crashes in the stock market too. Doesnt stop investors.
I agree that owning or renting is a case by case person by person situation. If you are new to an area it makes sense to rent while settling in to the new lifestyle. Once it's decided that you're staying for a few years, then home ownership is the best way to go.
Some people say "the monthly bills". Yes, you pay for your water, sewer and trash as an owner.
As an owner you pay property taxes and mortgage interest. You are responsible for maintaining the property as well. However, your investing in yourself and not the landlord.
Its nice to come home to a place and know it is yours and you can do anything you so desire with it.
It would irritate me if i came to a city i didnt know about and quickly bought a house then as i drive to work every day i notice other communities i wish i'd bought a house in, or as time goes on and friends accumulate they snicker when you tell them what part of town you are living in,and theres other problems that can be discovered by renting for 6 months before actually buying. That $1800 a month for temporary rent is way over the top,you can get a nice place for half that, remember its just temporary.
Check these prices in the Tampa area. tampa bay apts/housing for rent classifieds - craigslist
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Not all realtors are like used car salesman though.
