Is an advantage to own a house?

[Anonymous]

DH and I have been talking about moving on. We've been living in rentals for the past 4 years.
Putting aside the "investment" part of it, thinking only about convenience is it really an advantage to own your own home?
We live in a building right by the metro with a indoor pool, gym, party room. 2 blocks from groceries, close to a mall, and right by major highways. 10 minutes form airport, close to the library, several parks and community centers.
We would never be able to afford owning here!
Now, talking about all the yuck I've read here about the snow, we don't have to worry about being without energy, heat, no plowing, no worries about trash, we have indoor garage so no digging our cars. Now, the bad side: definitely our space is limited. I don't have space to keep my hobbies going and we have to deal with the college kids by our side in the balcony smoking when the weather is nice.
If it was not for the life time investment would you mind living in a better place than you can afford paying rent?

[Anonymous]

I think this depends on your personal--your family's--goals.

If you want a certain kind of financial security, I think homeownership can provide this, particularly if you buy when the market is down, get low fixed rate mortgage, etc. This home, for instance, can provide you with an asset that you can then own outright by retirement.

If you want a certain kind of nesting thing, I think homeownership can also be important. You can decorate or renovate a home in a way you'd never if you rent.

If you want time and believe in other kinds of financial security (or maybe don't value financial security at all), renting can be great! You are relieved of many a burden. Some renters rent for less than they'd spend on housing otherwise, and they use this extra money for a nicer lifestyle (more vacations) or more savings. Also, it provides a great deal of location flexibility, such as if you value career climbing (or your job requires a lot of moves).

[Anonymous]

Homeowning is a huge PITA. That said, once you have kids your life is pretty much a succession of tedious chores anyway, so why not go the whole hog and relish the misery.

As for the investment thing, baring a few years leading up to the recent bubble, homes have only tended to appreciate with the rate of inflation. You can make a lot of money if you buy in the right place at the right time, but you can also lose a lot of money (see Detroit). There are tax advantages. But as an asset class you might be as well off buying land or shares or fine wines.

[Anonymous]

Anonymous wrote:Homeowning is a huge PITA. That said, once you have kids your life is pretty much a succession of tedious chores anyway, so why not go the whole hog and relish the misery.

As for the investment thing, baring a few years leading up to the recent bubble, homes have only tended to appreciate with the rate of inflation. You can make a lot of money if you buy in the right place at the right time, but you can also lose a lot of money (see Detroit). There are tax advantages. But as an asset class you might be as well off buying land or shares or fine wines.

I think I just sharted.

[Anonymous]

It depends. I was brought up with pride in ownership of one's own home, property. It was considered something you just did - you work hard to own and maintain a house, as a goal. It certainly is work. If you were "lucky" (read: hard work, not luck at all), owning a home was part of your life, where you raise your kids and create memories as your own.

Market timing is everything. But the market constantly changes. I know people who did extremely well at the height of the market, and therefore were able to do better at the height of the market than most people. {People assume everyone got screwed if they bought within a certain window, which is NOT necessarily true!]

Sentiment, and market, reflect one's ability, I suppose.

[Anonymous]

Anonymous wrote:

It depends. I was brought up with pride in ownership of one's own home, property. It was considered something you just did - you work hard to own and maintain a house, as a goal. It certainly is work. If you were "lucky" (read: hard work, not luck at all), owning a home was part of your life, where you raise your kids and create memories as your own.

This is how The Man gets you to be a willing slave.

[Anonymous]

We own, bought in 2004 so it was expensive but not at the peak, and I wish we could just sell and go to a rental with all the conveniences you mention op: gym, pool, garage, all on site.... walk to metro, shops, stores, etc.
Do you live in Ballston/Clarendon? I would love to move there and am seriously considering doing it. Dh agrees, and we have a 20mo and trying for second.

[Anonymous]

If you're renting, i would strongly recommend pursuing other investments that "equal" to the average return on owning a home over 30+ years. Whatever that may be. A financial advisor can help you, here.

I plan on looking into this in the next few years. We purchaced, but I think my hubs and I, in our hearts, are vagrants.

[Anonymous]

Home ownership used to be a layup decision financially. Not so much anymore. In some markets, it is far better to rent than to buy. I bet that the condo market in parts of DC is like that. The reason is that so many units are owned by speculators/ investors who are under financial pressure that they are willing to rent to you at a loss just to slow down their losses. In some cases that rental amount is less than the mortgage payment on a condo even at the market price today.

[Anonymous]

If you own a home, you own the risk. It ties you to a location far more than renting does. Relocating is harder, and there's no number to call when something breaks. Right now, you get to live in a place you prefer and you'd have to give it up.

You also own a lot of responsibility. Yard, snow, furnace...

If you can easily afford a house you like with a good chunk of change as a down payment, then owning is nice because you have freedom to mold the home to exactly your preferences. You can always move, even if at a loss. If you are stretching, home ownership sucks. Things break, and you have to live with it.

There are many other investments. Housing is only a good investment if you actually get value out of living in the place. Doesn't sound like you would.

[Anonymous]

OP here. WOW I'm so surprised by the answers thank you so much. I didn't think I was clear enough after reading my post again but you guys really understood it.
We're not handy people so customizing our living place is not that important to us. The fact that we have maintenance people over in 30 minutes is the best! I can't imagine what we would do if we needed help living in a home.
I guess we were just thinking over our decision because all our friends are buying right now and they've been questioning us. We're so comfortable renting that we never asked ourselves if owning would be better.
After reading your answers I'm certain that we're going the right way.
Thanks a lot.
DH is loving DCUM now

[Anonymous]

Is it an advantage? I'm sitting here, literally waiting to see if my 100 year old roof is going to cave in or make it through the night.

I'll answer you in the morning.

[Anonymous]

i rent, for many of the reasons that you state. i live in a very vibrant urban neighborhood that i love and would never in a million years be able to afford as an owner.

space is a big concern for me, but i used to live in NYC, so i have a whole different concept of what constitutes adequate space.

the thing is--my dd is now 4 and i am the only--and i mean the absolute only--renter in my kid-oriented social circle (parent friends from neighborhood, playgroup, school). and i feel self-conscious about it. and i genuinely think that it somewhat impacts other people's impressions of me. and that bothers me. it really does. i feel like i don't seem as financially stable, or as mature or as professional as other parents, even though i am those things.

anyway, just something to think about.

[Anonymous]

Anonymous wrote:Is it an advantage? I'm sitting here, literally waiting to see if my 100 year old roof is going to cave in or make it through the night.

I'll answer you in the morning.

OP here. I'm so sorry for you PP.
I had my house flooded growing up and it was not fun. I feel so bad for all the families I've been seen here with no power during this cold weather.
I really hope you guys get through it with everybody being safe!

[Anonymous]

my 100 year old roof

Seriously? Either your roof is slate, and hopefully you've kept on top of any little issues with it if there were any, or you are in BIG trouble.