Didn't realize how expensive home ownership was

[Anonymous]

I Didn't realize how expensive home ownership was until I sold my house. Wow. So much more disposable income. Now, I can save more, I can travel. Property taxes, landscaping, labor cost etc...man they add up.

I really thing we need to review the standard advice we have been giving people about becoming homeowners. When you look at the trajectory of property taxes for example I am honestly wondering how is homeownership still the best way to build wealth.

The way to get wealthy is to live cheap, don't buy stuff and save and invest your money. The problem is that most people don't want to live that way.

[Anonymous]

I sold the three properties. money was invested and I was able to retire.
Rents have gone down few times while I'm renting. My rental is cheaper and nicer than my homes were.
The real estate religion is real.
Just had the conversation with someone yesterday. They even think they can flip houses, because they know people who got rich that way 20 years ago.

[Anonymous]

I want stability and control. Renting gives me neither.

[Anonymous]

Anonymous wrote:I want stability and control. Renting gives me neither.

Of course it does. You can always exit the contract with zero loss

I own properties in one city ; rent in another. I enjoy being a renter and being able to move from one full amenities community to another.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sure but you miss out on massive historical appreciation.

That doesn't always happen.

But it happens often enough.

[Anonymous]

Anonymous wrote:Its the debate that trigger people the most.

In the US so many people have almost as much as 1/2 their net worth tied to their homes.

So people get very triggered if they live in an expensive home and are stuck.

This is why as soon as someone says home prices are declining they get verbally assaulted and challenged.

This is also why the US government pays so much attention to housing because it knows that any distress in the market the financial implications at the household level can be big.

The lesson is don't take out the largest mortgage you can get approved for. The bank and real estate will encourage it, of course, because that's how they make more money.

[Anonymous]

Anonymous wrote:I want stability and control. Renting gives me neither.

Exactly.

Renting is great until you suddenly get hit with a huge increase.

[Anonymous]

Anonymous wrote:

I Didn't realize how expensive home ownership was until I sold my house. Wow. So much more disposable income. Now, I can save more, I can travel. Property taxes, landscaping, labor cost etc...man they add up.

I really thing we need to review the standard advice we have been giving people about becoming homeowners. When you look at the trajectory of property taxes for example I am honestly wondering how is homeownership still the best way to build wealth.

The way to get wealthy is to live cheap, don't buy stuff and save and invest your money. The problem is that most people don't want to live that way.

What a nonsense. I don’t know any billionaire who became a billionaire because they lives cheap.
You get wealthy by investing or creating businesses that generate money. Real estate investments like other investments are some ways to get there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I want stability and control. Renting gives me neither.

Of course it does. You can always exit the contract with zero loss

I own properties in one city ; rent in another. I enjoy being a renter and being able to move from one full amenities community to another.

You can exit the contract, but you rarely find a comparable new place to rent at the original rate.

[Anonymous]

My house is paid off, far cheaper than renting.

[Anonymous]

Anonymous wrote:Also partially tax deductible

No, it is generally not any more.

[Anonymous]

When we bought our home 30 years ago, we had to stretch our budget and be comfortable with buying a house that was 4x our gross annual income. And at that point in DMV our 2 choices were - a small, old tiny dwelling (as a starter home) in a very desirable neighborhood OR a new decent sized SFH in the boonies in a neighborhood that had poorly rated public schools.

This was nearly 30 years ago. At that age, and in those economic conditions, and that salary...we felt all the pinch in many ways. Barely managing on one income, one kid, SAHM. So, home-ownership was never easy for anyone we knew. I am shocked at the boo-hooing that we see when young people cry about not being able to afford housing or their lifestyle.

We lived for years till we were in our mid 30s with frugality in our food budget, gas budget, clothing budget and bought only the bare minimum stuff. And no - we did not have travel budget, kids EC budget, private school budget, hair extension and coloring budget, pet budget.

What are the people cribbing about. Buying a home was a big accomplishment. We stayed in an apartment from the time we started working (22) till after we had our DC 1 (33).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I want stability and control. Renting gives me neither.

Of course it does. You can always exit the contract with zero loss

I own properties in one city ; rent in another. I enjoy being a renter and being able to move from one full amenities community to another.

You can exit the contract, but you rarely find a comparable new place to rent at the original rate.

I always do

[Anonymous]

You gearing up for those capital gains?

[Anonymous]

Anonymous wrote:When we bought our home 30 years ago, we had to stretch our budget and be comfortable with buying a house that was 4x our gross annual income. And at that point in DMV our 2 choices were - a small, old tiny dwelling (as a starter home) in a very desirable neighborhood OR a new decent sized SFH in the boonies in a neighborhood that had poorly rated public schools.

This was nearly 30 years ago. At that age, and in those economic conditions, and that salary...we felt all the pinch in many ways. Barely managing on one income, one kid, SAHM. So, home-ownership was never easy for anyone we knew. I am shocked at the boo-hooing that we see when young people cry about not being able to afford housing or their lifestyle.

We lived for years till we were in our mid 30s with frugality in our food budget, gas budget, clothing budget and bought only the bare minimum stuff. And no - we did not have travel budget, kids EC budget, private school budget, hair extension and coloring budget, pet budget.

What are the people cribbing about. Buying a home was a big accomplishment. We stayed in an apartment from the time we started working (22) till after we had our DC 1 (33).

Cribbing gives you away…