Didn't realize how expensive home ownership was

[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.

Not for investment property where you don’t live

[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).

I assume this is a troll, tossing in the SAHM luxury, acting as if 4x income is a lot (most people are paying much more), then avocado toasting why people can’t afford today because of “pet budget”.

I assume you arr

[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.

This is a troll post. So are you homeless now? Where do you live? Do you pay rent? Every rental owner I know includes the cost of property taxes, landscaping, maintenance of their rentals in the cost of the rent. You’re still paying for those things it’s just wrapped up in the rent and the rental owner thanks you for it.

[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.

At the of the month, you have nothing to show for your rent. You can’t write it off your taxes either. On the other hand, the rental owner slowly pays down their mortgage with your money. Rent is forever.

[Anonymous]

Maybe in the short term. In the long term it’s obviously better to own. We are in middle age and have two paid off houses. Imagine how much rent we would have thrown away all those years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Also partially tax deductible

Only if you itemize

Not a problem to itemize in the DMV area

[Anonymous]

People are confusing home ownership with real estate investment. A home is a place to live. One person on here said she kept buying up and has purchased 6 homes. The closing costs and moving costs of doing that would knock out a lot of whatever "investment" increases that person got. I'm sure if you bought and sold at just the right times you could make some money, but life is short and moving is a PITA.

The people who are renting out their homes are investors. Investors can write off depreciation on those homes. Yes, homes are a depreciating asset. Why? Because of maintenance. If a home is not maintained it turns into a dump. And maintenance is getting more expensive as a result of tariffs and inflation. You also have to pay taxes and insurance so a home is never really "paid off". Plus it's a "hands on" investment. You have to deal with making maintenance decisions. It's not a passive investment so your time in maintaining it should be considered as a cost when you compare it to stocks (for example).

My suggestion to OP is that if you buy a home, have a pretty good emergency fund in place after the purchase. Enjoy the home, but do not think that you are going to get rich by owning a home. Buy a home that is priced below your ability to pay for it. Do not listen to anyone who says you should "max out" on your home purchase (based on what you are qualified to borrow).

People say that landlords can increase your rent. Yes, they can. But your insurance and taxes on an "owned" home can increase as well from one year to the next. The price of maintenance goes up every year.

As immigrants are kicked out and the boomers die, the price of housing and rents may not go up. In fact rents may be the first thing that goes down.

[Anonymous]

My PITI is about half what it would cost to rent my house. OP is comparing apples and oranges, he is not comparing renting versus owning the same property.

Home ownership is not inexpensive but neither is renting. Will comment that wealthy people could get away with renting because they have the income and discipline to ringfence other savings and investments. But most people don't have that option. It's either rent money down the drain or slow and steady enforced savings through mortgage payments. Your typical person is not coming out ahead 30 years later renting instead of owning. They are going to be behind. And for the modest income owner, a mortgage free house is key to affording retirement.

Regarding my comment about wealthy people affording the advantages of renting, yet most still choose to own.

Will also say there are times and circumstances when it is better to rent, but those are always specific periods, not long run.

[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.


This is a troll post. So are you homeless now? Where do you live? Do you pay rent? Every rental owner I know includes the cost of property taxes, landscaping, maintenance of their rentals in the cost of the rent. You’re still paying for those things it’s just wrapped up in the rent and the rental owner thanks you for it.

Renting and owning are just lifestyle decisions really. Every homeowner pays for property taxes, landscaping, and maintenance as well. Those are costs that they have to figure into any appreciation they may or may not get upon sale. Everyone has to live somewhere. Renting is good if you don't want to make those landscaping and maintenance decisions and you may gladly pay whatever it costs to enjoy the landscaping and maintenance that is provided. You are paying the landlord to take the risk of homeownership (and yes, risk is involved). If the OP is happy renting, that's great. I think he is only pointing out that there is an argument to be made for renting, not that it is superior to owning. They are just two different ways of having shelter.

[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.

But then you have to keep moving. DP.

[Anonymous]

Anonymous wrote:

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

Exactly.

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

How is that different from getting hit with an huge unexpected house repair or a huge increase in property taxes?

[Anonymous]

Anonymous wrote:
People are confusing home ownership with real estate investment. A home is a place to live. One person on here said she kept buying up and has purchased 6 homes. The closing costs and moving costs of doing that would knock out a lot of whatever "investment" increases that person got. I'm sure if you bought and sold at just the right times you could make some money, but life is short and moving is a PITA.

The people who are renting out their homes are investors. Investors can write off depreciation on those homes. Yes, homes are a depreciating asset. Why? Because of maintenance. If a home is not maintained it turns into a dump. And maintenance is getting more expensive as a result of tariffs and inflation. You also have to pay taxes and insurance so a home is never really "paid off". Plus it's a "hands on" investment. You have to deal with making maintenance decisions. It's not a passive investment so your time in maintaining it should be considered as a cost when you compare it to stocks (for example).

My suggestion to OP is that if you buy a home, have a pretty good emergency fund in place after the purchase. Enjoy the home, but do not think that you are going to get rich by owning a home. Buy a home that is priced below your ability to pay for it. Do not listen to anyone who says you should "max out" on your home purchase (based on what you are qualified to borrow).

People say that landlords can increase your rent. Yes, they can. But your insurance and taxes on an "owned" home can increase as well from one year to the next. The price of maintenance goes up every year.

As immigrants are kicked out and the boomers die, the price of housing and rents may not go up. In fact rents may be the first thing that goes down.

There’s so much wrong with this previous post I don’t even know where to begin. Obviously made by a left-wing socialist who believes in collectivism.

Yes there are ever increasing maintenance and insurance costs as well as mortgage, property taxes, closing and moving costs when owning a home. But you also have those costs to when renting (taxes, maintenance, HOA, insurance, mortgage are all wrapped up into the price of the rent by the owner). And you have nothing to show for that at the end of the month as a renter but the owner has a little more equity. When you move from rental to rental you pay those moving costs as well. The appreciation on the home is so much greater than those costs. One of my houses is up over $1M in value from my purchase price in 2013 but all my costs come nowhere near that amount. Perhaps $100K-$200K in the same time frame. And I sell all my houses via FSBO keeping closing costs down.

[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.

This is a troll post. So are you homeless now? Where do you live? Do you pay rent? Every rental owner I know includes the cost of property taxes, landscaping, maintenance of their rentals in the cost of the rent. You’re still paying for those things it’s just wrapped up in the rent and the rental owner thanks you for it.

For most its still cheaper. Once again home owners get so emotional every time someone says renting is cheaper. Why are y'all so triggered by this?

[Anonymous]

Anonymous wrote:
People are confusing home ownership with real estate investment. A home is a place to live. One person on here said she kept buying up and has purchased 6 homes. The closing costs and moving costs of doing that would knock out a lot of whatever "investment" increases that person got. I'm sure if you bought and sold at just the right times you could make some money, but life is short and moving is a PITA.

The people who are renting out their homes are investors. Investors can write off depreciation on those homes. Yes, homes are a depreciating asset. Why? Because of maintenance. If a home is not maintained it turns into a dump. And maintenance is getting more expensive as a result of tariffs and inflation. You also have to pay taxes and insurance so a home is never really "paid off". Plus it's a "hands on" investment. You have to deal with making maintenance decisions. It's not a passive investment so your time in maintaining it should be considered as a cost when you compare it to stocks (for example).

My suggestion to OP is that if you buy a home, have a pretty good emergency fund in place after the purchase. Enjoy the home, but do not think that you are going to get rich by owning a home. Buy a home that is priced below your ability to pay for it. Do not listen to anyone who says you should "max out" on your home purchase (based on what you are qualified to borrow).

People say that landlords can increase your rent. Yes, they can. But your insurance and taxes on an "owned" home can increase as well from one year to the next. The price of maintenance goes up every year.

As immigrants are kicked out and the boomers die, the price of housing and rents may not go up. In fact rents may be the first thing that goes down.

The Problem is that home ownership is still being sold to Americans as the sure way to build wealth. It's not. Insurance, tax and maintenance are a big drag for middle class households. They are seriously squeezed.

[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.

This is a troll post. So are you homeless now? Where do you live? Do you pay rent? Every rental owner I know includes the cost of property taxes, landscaping, maintenance of their rentals in the cost of the rent. You’re still paying for those things it’s just wrapped up in the rent and the rental owner thanks you for it.

For most its still cheaper. Once again home owners get so emotional every time someone says renting is cheaper. Why are y'all so triggered by this?

You are confusing cheaper at the end of the month vs. cheaper at the end of the year, the decade, etc. In the vast majority of cases, homes appreciate. And you pay down the mortgage. Eventually you own outright the home you paid $500k for that is now worth $1M. You now have a million dollars that would not exist if you had rented.