If you liked renting would you just keep doing it?

[Anonymous]

Anonymous wrote:It’s fine but make sure you truly have the cash to possibly purchase a home in retirement. The $3,800 is fine when you’re earning wages, but you won’t want to pay rent when retired.

Really you should be spending the $3,800 a month on a condo or house further out.

A few people I know who mismanage their finances and spend too much all rent in places they can’t afford to buy. That’s the problem with what you’re doing. Really you should be renting further out for say, $2,000

First, it’s unlikely OP could ever afford to buy the house she is renting.

Second, homeowners still have monthly costs of property tax and homeowners insurance (technically, you can drop insurance, but risky), both of which have been increasing each year in most locations.

I have owned my home for 20+ years, and my tax is $1,000/month and insurance $200/month. Tax increases 10% each year until assessed and market values are equal.

I also average about $800/month in maintenance costs, spreading things like getting house painted every 8 years, getting roof replaced and other maintenance over the months.

So, that’s $2,000 per month with zero mortgage…again, increasing nearly every year.

[Anonymous]

Definitely yes. Home ownership is mostly intrinsically valuable. People find value in not having to move, and being fully in charge of their domain. It is not always (nor even usually) financially valuable.

If you have a set up that working, dont change.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s fine but make sure you truly have the cash to possibly purchase a home in retirement. The $3,800 is fine when you’re earning wages, but you won’t want to pay rent when retired.

Really you should be spending the $3,800 a month on a condo or house further out.

A few people I know who mismanage their finances and spend too much all rent in places they can’t afford to buy. That’s the problem with what you’re doing. Really you should be renting further out for say, $2,000

First, it’s unlikely OP could ever afford to buy the house she is renting.

Second, homeowners still have monthly costs of property tax and homeowners insurance (technically, you can drop insurance, but risky), both of which have been increasing each year in most locations.

I have owned my home for 20+ years, and my tax is $1,000/month and insurance $200/month. Tax increases 10% each year until assessed and market values are equal.

I also average about $800/month in maintenance costs, spreading things like getting house painted every 8 years, getting roof replaced and other maintenance over the months.

So, that’s $2,000 per month with zero mortgage…again, increasing nearly every year.

Thank you for saying this! This idea that if you pay off a mortgage you live rent free and get rich is no accurate. I believed it before we purchased our home and feel dumb now! You will always be paying something each month. Home ownership doesnt erase that.

[Anonymous]

As long it's cheap why not. I grew up in a big house. I am very happy in my small apartment and I am not going to change it. I have no desire to have kids as well so I don't see the point in buying a house.

[Anonymous]

Anonymous wrote:Definitely yes. Home ownership is mostly intrinsically valuable. People find value in not having to move, and being fully in charge of their domain. It is not always (nor even usually) financially valuable.

If you have a set up that working, dont change.

How often do people move though. I have been renting at the same place for 15 years. Sometimes people make it sound like people get kicked out for whatever reasons..weird

[Anonymous]

Anonymous wrote:I live in an extremely high cost of living area. Median home is $1 million and there’s not much housing. I currently rent a great place that is worth $1.5 million and pay $3800 in rent every month. I wouldn’t be able to afford a place this big to buy. I have invested most of my money and keep a large emergency fund and retirement is maxed out. I don't know if I’ll stay in this place after my kids graduate, but I have to for now due to divorce and having to live here while they’re in school. I assume when they are out of the house my need for space would go down and if I did want to stay here, I could buy a smaller place or a condo.



I can’t seem to shake the feeling that I “should” own. Tell me if you have house regrets and that it’s ok for me to keep doing this.

This feeling is real. Owning a place makes you feel like you made it, even if its very basic and modest. However, if you've a nice place, keep renting until you need to move. In meanwhile keep investing money and buy if market tanks. Buy low, hold for long and sell high is where home ownership pays off.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s fine but make sure you truly have the cash to possibly purchase a home in retirement. The $3,800 is fine when you’re earning wages, but you won’t want to pay rent when retired.

Really you should be spending the $3,800 a month on a condo or house further out.

A few people I know who mismanage their finances and spend too much all rent in places they can’t afford to buy. That’s the problem with what you’re doing. Really you should be renting further out for say, $2,000

First, it’s unlikely OP could ever afford to buy the house she is renting.

Second, homeowners still have monthly costs of property tax and homeowners insurance (technically, you can drop insurance, but risky), both of which have been increasing each year in most locations.

I have owned my home for 20+ years, and my tax is $1,000/month and insurance $200/month. Tax increases 10% each year until assessed and market values are equal.

I also average about $800/month in maintenance costs, spreading things like getting house painted every 8 years, getting roof replaced and other maintenance over the months.

So, that’s $2,000 per month with zero mortgage…again, increasing nearly every year.

Thank you for saying this! This idea that if you pay off a mortgage you live rent free and get rich is no accurate. I believed it before we purchased our home and feel dumb now! You will always be paying something each month. Home ownership doesnt erase that.

OP - Thanks for this. I know lots of people don’t save for retirement but I am disciplined. Yes my ex bought me out of our last home but it was in a lower COL area. I can’t move “farther out” because I’m not in the DC area. I am halfway between my kids and my job, I wanted to move closer to the kids but it is even more expensive where they are (tourist area).

[Anonymous]

Yes, keep renting. It suits your needs. Housing is not a one size fits all situation. Do what’s best for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Definitely yes. Home ownership is mostly intrinsically valuable. People find value in not having to move, and being fully in charge of their domain. It is not always (nor even usually) financially valuable.

If you have a set up that working, dont change.

How often do people move though. I have been renting at the same place for 15 years. Sometimes people make it sound like people get kicked out for whatever reasons..weird

I haven't rented since my 20s but i had multiple landlords ask us to move. Sometimes they were moving back in to the property. Once they raised the rent crazy high. Once the owners were military and I guess came home from deployment and they kicked us out mid lease. That was obnoxious.

As a kid I recall needing to move once because my parents were renting and the owner wanted the house back to sell.

In my neighborhood the renters dont stay longer than a year or two, but i dont know if that is their or the owners decision.

Not having to move is the biggest benefit to home ownership in my opinion.

[Anonymous]

Actually kind of impressed with the responses here. So used to seeing the usual "don't throw money away on rent" nonsense. Different people in different situations have different needs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Definitely yes. Home ownership is mostly intrinsically valuable. People find value in not having to move, and being fully in charge of their domain. It is not always (nor even usually) financially valuable.

If you have a set up that working, dont change.

How often do people move though. I have been renting at the same place for 15 years. Sometimes people make it sound like people get kicked out for whatever reasons..weird

I haven't rented since my 20s but i had multiple landlords ask us to move. Sometimes they were moving back in to the property. Once they raised the rent crazy high. Once the owners were military and I guess came home from deployment and they kicked us out mid lease. That was obnoxious.

As a kid I recall needing to move once because my parents were renting and the owner wanted the house back to sell.

In my neighborhood the renters dont stay longer than a year or two, but i dont know if that is their or the owners decision.

Not having to move is the biggest benefit to home ownership in my opinion.

Yeah my mom rented in retirement until she ran into a couple situations like this— landlord decided to let her kid have the house etc.— so she bought because she was sick of not being in control of her own housing.

[Anonymous]

I live in NYC and most people never come out ahead buying here unless you buy in an undesirable neighborhood. To buy the equivalent of the place we rent would cost $3k more monthly. With that said, I did run into the issue of our landlord selling the building after 14 years, which changed my perspective a bit. So I’m always on the lookout for apts for sale where monthly costs are somewhat close to what we pay in rent. But yeah, def annoying even if mortgage free here I still have to pay minimum $1500 in maintenance costs…forever. Also looked into buying in a desirable suburban neighborhood with a decent commute into the city. But taxes are $18k annually and I might as well stay in the city at those costs.

I will say we made max $290k for a long time and I think renting below our means has def contributed to our net worth being $3.5 million in our mid 40s. Our apt is also rent stabilized.

[Anonymous]

Anonymous wrote:The biggest issue is to make sure you're still saving enough because you're not building equity. You don't want to be in a spot where you don't have enough in retirement.

Most people don't have the discipline to save the equity others automatically end up building by paying their mortgage, as it's tempting to take that vacation or by that nice thing.

With Trump on a manic high and no one to stop him I wouldn’t expect housing prices to go up, probably down.