Reply to If you liked renting would you just keep doing it?

Forum Index » Money and Finances

Reply to "If you liked renting would you just keep doing it?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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[/quote]

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.
[/quote]

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.[/quote]

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).[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics