Didn't realize how expensive home ownership was

[Anonymous]

Anonymous wrote:

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.

And you think renting is cheaper?
Renting is only cheaper if you rent a smaller home than the one you would buy.
Do you think you can rent a home like the one you sold for less than your mortgage? I doubt it.

+1. Yes, I like how OP says nothing about her rental costs. Buying usually leads to great appreciation, which is why I’ve owned six homes and keep moving up. Plus tax breaks. It’s called diversifying your investments and everyone who can do so should buy and hold.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

And you think renting is cheaper?
Renting is only cheaper if you rent a smaller home than the one you would buy.
Do you think you can rent a home like the one you sold for less than your mortgage? I doubt it.

+1. Yes, I like how OP says nothing about her rental costs. Buying usually leads to great appreciation, which is why I’ve owned six homes and keep moving up. Plus tax breaks. It’s called diversifying your investments and everyone who can do so should buy and hold.

You are effectively wasting your money. Very few people actually run the numbers . Home appreciation is nowhere near S&P . A mansion in DC was $600k in 1990s. Now it’s $4m house (if you are lucky with best zip codes).
If you invested in stocks you would have $5.6m now and no worries about house maintenance.
It also very much depends on RE class. Condos actually depreciate not appreciate

[Anonymous]

Anonymous wrote:


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.

If you want to be a billionaire, good luck. But you can become a multi millionaire (what used to be the millionaire next door) by living below your means, not buying expensive cars and investing your savings (and you will save a lot by not buying a lot of unneccessary junk). It's definitely not nonsense. I don't know any billionaires either, but I do know plenty of multimillionaires who are doing well enough.

[Anonymous]

Anonymous wrote:

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…

What do you mean? Gives you away, how?

[Anonymous]

Anonymous wrote:
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…

+1 You need to learn to speak American English.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

And you think renting is cheaper?
Renting is only cheaper if you rent a smaller home than the one you would buy.
Do you think you can rent a home like the one you sold for less than your mortgage? I doubt it.

+1. Yes, I like how OP says nothing about her rental costs. Buying usually leads to great appreciation, which is why I’ve owned six homes and keep moving up. Plus tax breaks. It’s called diversifying your investments and everyone who can do so should buy and hold.

You are effectively wasting your money. Very few people actually run the numbers . Home appreciation is nowhere near S&P . A mansion in DC was $600k in 1990s. Now it’s $4m house (if you are lucky with best zip codes).
If you invested in stocks you would have $5.6m now and no worries about house maintenance.
It also very much depends on RE class. Condos actually depreciate not appreciate

Wrong. Any investment advisor will tell you to diversity in stocks bonds, precious metals and real estate when one goes up, another may go down. I’ve made millions on real estate. It’s done better than my portfolio.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

And you think renting is cheaper?
Renting is only cheaper if you rent a smaller home than the one you would buy.
Do you think you can rent a home like the one you sold for less than your mortgage? I doubt it.

+1. Yes, I like how OP says nothing about her rental costs. Buying usually leads to great appreciation, which is why I’ve owned six homes and keep moving up. Plus tax breaks. It’s called diversifying your investments and everyone who can do so should buy and hold.

You are effectively wasting your money. Very few people actually run the numbers . Home appreciation is nowhere near S&P . A mansion in DC was $600k in 1990s. Now it’s $4m house (if you are lucky with best zip codes).
If you invested in stocks you would have $5.6m now and no worries about house maintenance.
It also very much depends on RE class. Condos actually depreciate not appreciate

Wrong. Any investment advisor will tell you to diversity in stocks bonds, precious metals and real estate when one goes up, another may go down. I’ve made millions on real estate. It’s done better than my portfolio.

I would love to see which real estate earned you millions. Single family homes and condos are money dump

[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.

my PITI and HOA fees are a total of 1900/mo and I am charging someone 4,000/mo, and my property has increased by 40% in the last 4.5yrs i gotta say I love how you think!

[Anonymous]

Anonymous wrote:

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.

my PITI and HOA fees are a total of 1900/mo and I am charging someone 4,000/mo, and my property has increased by 40% in the last 4.5yrs i gotta say I love how you think!

Which city/state? Surely not DC

[Anonymous]

Anonymous wrote:

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

Sure you do.

Troll harder

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

Sure you do.

Troll harder

Im in major metropolitan area (not DC) and rents in both buildings where I lived were increased by 3% year over year. In DC I am a landlord and rents are stagnating/lower than during Covid at my multi units.

I would love to learn in which state you can beat S&P in rental income. And no I would NOT buy out of pure expectation of appreciation

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

And you think renting is cheaper?
Renting is only cheaper if you rent a smaller home than the one you would buy.
Do you think you can rent a home like the one you sold for less than your mortgage? I doubt it.

+1. Yes, I like how OP says nothing about her rental costs. Buying usually leads to great appreciation, which is why I’ve owned six homes and keep moving up. Plus tax breaks. It’s called diversifying your investments and everyone who can do so should buy and hold.

You are effectively wasting your money. Very few people actually run the numbers . Home appreciation is nowhere near S&P . A mansion in DC was $600k in 1990s. Now it’s $4m house (if you are lucky with best zip codes).
If you invested in stocks you would have $5.6m now and no worries about house maintenance.
It also very much depends on RE class. Condos actually depreciate not appreciate

It doesn't work like that. If you bought the $600k house in the 90's, you down paid $120k + mortgage payments. So if comparing the returns to stocks, it should be based on returns on. $120k + paying rent.

[Anonymous]

I can't think of anything else other than real estate that is safe and can buy with 9x leverage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

And you think renting is cheaper?
Renting is only cheaper if you rent a smaller home than the one you would buy.
Do you think you can rent a home like the one you sold for less than your mortgage? I doubt it.

+1. Yes, I like how OP says nothing about her rental costs. Buying usually leads to great appreciation, which is why I’ve owned six homes and keep moving up. Plus tax breaks. It’s called diversifying your investments and everyone who can do so should buy and hold.

You are effectively wasting your money. Very few people actually run the numbers . Home appreciation is nowhere near S&P . A mansion in DC was $600k in 1990s. Now it’s $4m house (if you are lucky with best zip codes).
If you invested in stocks you would have $5.6m now and no worries about house maintenance.
It also very much depends on RE class. Condos actually depreciate not appreciate

It doesn't work like that. If you bought the $600k house in the 90's, you down paid $120k + mortgage payments. So if comparing the returns to stocks, it should be based on returns on. $120k + paying rent.

The point is I did compare, ran multiple spreadsheets . Stocks returned better

[Anonymous]

Anonymous wrote:I can't think of anything else other than real estate that is safe and can buy with 9x leverage.

Ask those investors who bought before 2008 crisis with zero down and foreclosed.