Didn't realize how expensive home ownership was

[Anonymous]

Anonymous wrote:

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?

When you rent you.pay for those things too. It's built into your rent so you don't see it itemized.

[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?

It's not cheaper. Why can't you understand this?

[Anonymous]

If I rented a home comparable to the one I live in, my rent would be much higher than my mortgage.

[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?

Lol, I love people like you. Paying increasingly high rent to me every year while my mortgage stays the same.

Extra funds to me!

[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.

A troll who lives in Mommy's basement.

[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.

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.

Fair enough. Renting vs ownership is a lifestyle choice. If I knew I was going to be somewhere for a short period of time I would probably rent. If you don’t want to have the responsibility of taking care of the landscaping or maintenance then rent (you’re paying for it anyway). But over the long run, home ownership from a financial perspective is so much better than throwing away rent. By the way, as a landlord, landscaping and maintenance is not a big deal. I have a landscaper who takes care of my rentals and I also have a handyman who takes care of most maintenance. The costs of all that is wrapped up into the monthly rent along with mortgage, insurance, taxes, etc and some profit.

[Anonymous]

My renters are slowly making me wealthy. There’s nothing like OPM.

[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.

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.

Fair enough. Renting vs ownership is a lifestyle choice. If I knew I was going to be somewhere for a short period of time I would probably rent. If you don’t want to have the responsibility of taking care of the landscaping or maintenance then rent (you’re paying for it anyway). But over the long run, home ownership from a financial perspective is so much better than throwing away rent. By the way, as a landlord, landscaping and maintenance is not a big deal. I have a landscaper who takes care of my rentals and I also have a handyman who takes care of most maintenance. The costs of all that is wrapped up into the monthly rent along with mortgage, insurance, taxes, etc and some profit.

In fairness, what you charge in rent is also based on what the market will bear...even if that's less than all your costs.

Also, you need to factor in vacancy rates and how that impacts overall returns.

[Anonymous]

My mortgage/taxes/insurance is 3k/mo. If I were to buy the same home now it would be 7k/mo. I am SO glad I bought when I did, which was 2018 so not that long ago. In my area for 3k now you can rent a 2 bedroom apartment.

[Anonymous]

As a homeowner I’ve come to realize that “equity” is basically meaningless. As they say, a rising tide lifts all boats. So yeah, your house might be worth more, but so is every other house. So if you want a comparable standard of living, all of the profits from the old house will get eaten up by the new house.

However, you can make real gains incrementally over long periods of time as rents you would have paid begin to surpass your mortgage payment. Until your home is paid off, home ownership is basically one and a half steps forward, one step back on average. After that, it’s two or three steps forward, one step back. That’s been my experience.

[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.


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.

Fair enough. Renting vs ownership is a lifestyle choice. If I knew I was going to be somewhere for a short period of time I would probably rent. If you don’t want to have the responsibility of taking care of the landscaping or maintenance then rent (you’re paying for it anyway). But over the long run, home ownership from a financial perspective is so much better than throwing away rent. By the way, as a landlord, landscaping and maintenance is not a big deal. I have a landscaper who takes care of my rentals and I also have a handyman who takes care of most maintenance. The costs of all that is wrapped up into the monthly rent along with mortgage, insurance, taxes, etc and some profit.

In fairness, what you charge in rent is also based on what the market will bear...even if that's less than all your costs.

Also, you need to factor in vacancy rates and how that impacts overall returns.

I never had an empty rental for very long maybe a month at most in the 20+ years I owned it except when upgrading it between renters. And all of those upgrade costs are wrapped up into future rent increases those renters are paying. Yes the market dictates the rent. This has never been an issue for me and most owners I would think over the long run especially when you have governments who cap the amount of new development or make the regulatory burden of building new homes so arduous that it’s not worth it to build. Rent control only increases the scarcity of new rentals. Basic supply and demand. And the home I rent out is not under rent control but other properties around it are.

[Anonymous]

Anonymous wrote:As a homeowner I’ve come to realize that “equity” is basically meaningless. As they say, a rising tide lifts all boats. So yeah, your house might be worth more, but so is every other house. So if you want a comparable standard of living, all of the profits from the old house will get eaten up by the new house.

However, you can make real gains incrementally over long periods of time as rents you would have paid begin to surpass your mortgage payment. Until your home is paid off, home ownership is basically one and a half steps forward, one step back on average. After that, it’s two or three steps forward, one step back. That’s been my experience.

You clearly have limited experience

[Anonymous]

Anonymous wrote:My mortgage/taxes/insurance is 3k/mo. If I were to buy the same home now it would be 7k/mo. I am SO glad I bought when I did, which was 2018 so not that long ago. In my area for 3k now you can rent a 2 bedroom apartment.

So...it seems like you are saying that it is better to rent now vs. buy (let's say a 3 BR is $4k/month) and invest the difference. It's probably more like $7.5k per month when you factor home maintenance into it as well.

I assume your $7k/month also assumes you make a 20% downpayment?

[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.


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.

Fair enough. Renting vs ownership is a lifestyle choice. If I knew I was going to be somewhere for a short period of time I would probably rent. If you don’t want to have the responsibility of taking care of the landscaping or maintenance then rent (you’re paying for it anyway). But over the long run, home ownership from a financial perspective is so much better than throwing away rent. By the way, as a landlord, landscaping and maintenance is not a big deal. I have a landscaper who takes care of my rentals and I also have a handyman who takes care of most maintenance. The costs of all that is wrapped up into the monthly rent along with mortgage, insurance, taxes, etc and some profit.

In fairness, what you charge in rent is also based on what the market will bear...even if that's less than all your costs.

Also, you need to factor in vacancy rates and how that impacts overall returns.

I never had an empty rental for very long maybe a month at most in the 20+ years I owned it except when upgrading it between renters. And all of those upgrade costs are wrapped up into future rent increases those renters are paying. Yes the market dictates the rent. This has never been an issue for me and most owners I would think over the long run especially when you have governments who cap the amount of new development or make the regulatory burden of building new homes so arduous that it’s not worth it to build. Rent control only increases the scarcity of new rentals. Basic supply and demand. And the home I rent out is not under rent control but other properties around it are.

I’m myself a landlord (from 2008 ) in DC. No way you can “wrap up” all landscaping pest control and maintenance in the rent. Maybe landlords can wrap up their Ds into something but certainly not the rents.

In NW DC in my building the rents went from $1650/month for a small 1br in 2007 to $2150 in 2026. Zip codes 20007; 20008; 20009; 20010 standard class real estate. The property values (a quoted 6 units project) grew from 1.9m to $2.7 but nowhere near S&P.

While it is somewhat increasing, these rent increases are nowhere in pace with maintenance costs inflation or stock market growth on other assets. In other words, the renters are better off renting and investing in market

I only hold it because selling would realize too much income tax through depreciation recapture and cap gains

Provide your real life data - zip codes, rents etc.

[Anonymous]

People VASTYLY underestimated how much home maintenance costs. And ignoring maintenance does not solve the problem. So being able to afford your mortgage AND being able to afford the maintenance needed every 5 years is not always the same thing. Some people think buying a new home gets them out of this. But appliances almost never make it to 10 years these days. And each home has thousands and thousands of dollars of appliances.

I've lived in my house 12 years and I've had to replace every single appliance in it. Some of them TWICE! We don't have much yardwork and I'm so glad because just the inside is expensive.