Is the American Dream not so Dreamy anymore???????

[disneycrazi]

Need opinions please on home ownership VS renting.
Do you own or rent? Do you wish you did the other?
It used to be you bought a house as soon as you could and if you decided to or had to move you put the house up on the market, sold it and bought a new one.
Now not so much......is renting the way to go unless you are retiring or fully settled???

 

[HM]

Need opinions please on home ownership VS renting.
Do you own or rent? Do you wish you did the other?
It used to be you bought a house as soon as you could and if you decided to or had to move you put the house up on the market, sold it and bought a new one.
Now not so much......is renting the way to go unless you are retiring or fully settled???

We bought a house as soon as we could. We are in our third house. We've got quite a bit of equity built up at this point. Buying was definitely a good move for us. We did not like living in apartments, and though homeownership can be a lot if work, it's worth it.

 

[Southernmiss]

For us, buying was the right thing to do. We rented a trailer for 2 years. Liked it except during bad weather.

Lived in a starter home made of wood for 9 years. Liked it except during bad weather. Sold it for nice equity.

Have lived in our current brick home for 10 years. Love it especially during bad weather. Can't hear a thing going on outside. Now have built up nice equity.

 

[lakelandgal70]

Hard to say really. We bought before we married and have been in this house 17years. There are pros and cons to owning and renting. Renting you don't have to worry about maintenance like you do in home you own. But when you rent you don't have that security that you will be there forever. Situations change and I know of at least 2 couples who have had to move cause the home they were renting was being sold. So I guess you really have to weigh the pros and cons for you

 

[crisi]

It used to be a rule of thumb that if you would live in the house longer than three years - AND the real estate market where you lived was stable, you were better off buying than renting.

Its a math problem - with a twist - you need to make a guess if the market will go down (don't assume it will go up). From there, its a matter of how much rent will be vs. your mortgage, what are your other expenses in home ownership, what your interest rate is, if you itemize and what your marginal tax rate is, how long you expect to be in one place etc.

 

[Sagginit]

i think it depends on your market. living right outside nyc (like 10 minutes outside) i looked into buying. i would either need to buy a mutli-family home or an apt in a co-op. lots of those places have such high fees that renting can be cheaper if you find a good rental. i know some that have saved up to buy and just can't commit to one location for that long. for me for now i like having the peace of mind of renting. problem with the pipes this week.... not my job to get a plumber and figure it out. if i were in the suburbs though i would be itching for a house because there i feel like financially it would definitely be a better move.

 

[MillauFr]

I am glad we bought. I wouldn't be able to afford to live in Seattle if we were renting. They are constantly increasing rents. At least by owning a house the principal and interest on my mortgage is fixed.

 

[ssawka]

As PPs have stated, it depends on where you live. We live outside of DC and bought before the boom. For us it was the best decision we could have ever made. We have made more on this house then we would have ever made saving for retirement. Yes, we have saved to, but my goal now is to move somewhere cheaper when we are ready to retire and cash out on the house.

 

[disneycrazi]

Thanks to everyone, I am trying to help my daughter and sil decide to buy or not to buy at this point. All the info is really helping, I knew the DIS boards was the place for advice!!!!!

 

[crisi]

Thanks to everyone, I am trying to help my daughter and sil decide to buy or not to buy at this point. All the info is really helping, I knew the DIS boards was the place for advice!!!!!

One thing to consider is if they are even the home ownership type. Especially if you go single family (as opposed to townhouse or condo) there is a lot of maintenance and upkeep. And a lot of silly expenses (garden hoses, lawnmower sharpening). If they rent a single family home, they may still end up with those expenses and some of that work.

I was talking to my son today and he was asking if we were going to move to a townhouse once he and his sister leave. I said "I'm counting the days." We'll still own - but I am so looking forward to no grass mowing or shoveling....

 

[sonnyjane]

Absolutely depends on your specific circumstances. DH is in the military and so for the last 10 years we have always rented because, even though it seems like a waste of money, we didn't want to get stuck with a house and given orders somewhere and be in a lousy situation after having to move. Now that he is getting out soon, we have purchased a home in another state that we fully intend to be our "forever home" and will move there when he is done.

Factor in EVERYTHING. Mortgage, utilities (some rentals include water and sewer which you'll have to pay when owning), insurance, taxes, maintenance vs. monthly rent. For us, in the markets we live in (SoCal) it has NEVER made sense to buy even though we spend a tremendous amount on rent. The truth is we would spend tremendous amount x 10 if we owned. Some markets you can actually save hundreds a month by owning.

One thing is don't but because you think you should. Really REALLY crunch the numbers. If you'll *just barely* be able to pay, don't do it, because as soon as the roof leaks, or the water heater goes, etc., all your wiggle room is gone.

 

[leebee]

Talk to a tax advisor, too. There are sometimes tax benefits to paying points when you purchase, and the mortgage deduction is never a bad thing (if you itemize on your taxes). Also don't let them get sucked into deciding to pay too much. Just because the bank will pre-approve them for a certain amount doesn't mean they will actually be able to afford those payments!

 

[ruadisneyfan2]

One thing to consider is if they are even the home ownership type. Especially if you go single family (as opposed to townhouse or condo) there is a lot of maintenance and upkeep. And a lot of silly expenses (garden hoses, lawnmower sharpening). If they rent a single family home, they may still end up with those expenses and some of that work.

I was talking to my son today and he was asking if we were going to move to a townhouse once he and his sister leave. I said "I'm counting the days." We'll still own - but I am so looking forward to no grass mowing or shoveling....

How funny! Dh & I were just saying how much we enjoyed our condo. No shoveling snow, cutting grass, etc. Heck we didn't even own a hose or lawnmower. In spring, we'd come home to see flowers planted. Pool was included. We bought it in 93 and stayed for 3 years before buying our single home we're in now.
It is a lot of maintenance because it was built in the early 60s but luckily dh is extremely handy.
We have agreed if one wants to be a homeowner, he/she either needs to be very handy or have plenty of $ to pay for maintenance. Unfortunately, his sister was in neither of these categories, insisted on a single home which needed a lot of work by the time she sold it.

The only negative I can think of was that there were so many rules living in a condo. When decorative flags first became trendy, they were banned. Also when the condo association first stated that people could get screen doors, they had to be purchased through the association and have them install it too. They wanted $300 and dh was peeved that it wasn't such a high quality door to justify the cost and he could install it himself and save $ but they wouldn't let us. Understandably, they wanted all the doors to match but still, it was frustrating. Our condo didn't have a garage so if we ever go back to a condo/townhouse, it will definitely have a garage, preferably 2-car. That was top on my list of requirements when shopping for a single, besides central air.

We had an apartment for 1 yr before the condo and that was our least favorite place. Sure no maintenance but many renters (not all) are not very concerned about keeping a place looking nice. Homeowners have more invested in their home or condo so they tend to put more effort into taking care of the place though not all do.

 

[bumbershoot]

It used to be you bought a house as soon as you could and if you decided to or had to move you put the house up on the market, sold it and bought a new one.

I'm just not convinced that that was ever a widespread thing that COULD happen. I certainly didn't grow up in a world where it was possible. My aunt didn't buy, either. My mom's brother did, and then got married and divorced something like 5 times, paying alimony each time and child support etc etc, so at some points the house was the ONLY thing he probably had. (and he was a lawyer)

Their parents bought a house, though. And sold it to move to FL. And then that house was given over for a reverse mortgage. So...

We rented for 17 years of my life; before then my mom and dad rented many apartments in San Francisco. My mom got re-re-married to a guy who DID grow up in a world where one could buy a house, and so she got her first taste of homeownership in her 40s. My dad's life wasn't set up for a house until he was something like 55. And so on and so forth.


We rent because it's scary as heck to think of buying. Renting, you can talk to your landlord (as we did back in '09) if you're facing a layoff, or you can rent a smaller place, etc. There are SO many things you don't have to worry about.

Slowly we're getting to a place where it still scares us, but the renting thing is getting old. Our dryer broke, they gave us a loaner while figuring out if the nice one could be fixed, and nearly a year later we still have the loaner. The washer is horrid, even though it's a relatively new one. I'd like to be able to put up a picture without thinking about when we move and how I'll have to fix the hole. etc.


We rent a condo in a building with mainly LONG retired people. And a few of them are actually moving BACK to houses; selling the condos and going to rent or buy a house. The interest in upkeep waxes and wanes, it seems.

 

[Viva Las Disney]

For me it just depends on home prices and rent in your area. I rented for years because home prices were so high my mortgage would be several hundred dollars more than renting a similar house, after the bubble burst I bought a short sale and now my mortgage is about $400 a month less than I was paying in rent.

When I first bought my house I was surprised that I felt like I lost a little freedom because I was tied down and couldn't just give notice and move. Now that the market has recovered a bit (and I'm nearing 6 figures in equity) I feel like my house has increased my freedom because I could sell my house and use that money to move anywhere I wanted.

 

[aliceindisneyland]

I would rent forever except it freaks the kids out! We have owned twice and have now rented 2 single family homes; we'll be at the current rental house for at least 15 more months, at which time we'll buy again.

FWIW I have always doubted the "tax writeoff" advice so every year I would do my taxes (itemized) without the mortgage info, then add it in and watch the ticker drop (Turbotax). I saved a big fat $1200 a year owning! It never changed up or down more than a few dollars - and that's with over $1500 a month going to interest.

So I saved $100 a month on taxes but I was responsible for several hundred in upkeep a month - thousands if I had an unlucky streak since of course you can't actually use your homeowners insurance. No thanks. I saved at least $2000 in the first two weeks we rented the current house on simple yet expensive fixes that *I* didn't have to pay since I rent!

 

[Swimalie]

As PPs have stated, it depends on where you live. We live outside of DC and bought before the boom. For us it was the best decision we could have ever made. We have made more on this house then we would have ever made saving for retirement. Yes, we have saved to, but my goal now is to move somewhere cheaper when we are ready to retire and cash out on the house.

We're a few miles west of you and made a huge mistake when we moved here. My husband had 6 days to find a house alone while I was across the country. He did well in choosing but we should have rented at first as the market went down fast. He bought his first house when he got out of the Navy. We sold it and made a lot of equity, moved across the country and rented at first until we found the right house. When we sold that one we made a lot of money on the appreciation and equity. Now, all of that extra money is in the down payment on this house, which is great for our mortgage as it's half the price of rent in our area, but we've lost value in the crash. If we sell now, we will lose about $50,000. The good thing about that is the difference in renting vs mortgage pricing in our area. Renting here is very expensive for what you get and with us owning the house, we can control what we do to it more.

But, when we move again, we plan on renting for a few months at least. So in a new area, I think renting is the way to go. If staying in an area where you know and can find the right house, I think buying is better.

 

[Aliceacc]

It would never have occurred to me NOT to buy a house.

I grew up in a house; all of my siblings and I bought a house within 2 years of getting married. And each of us is still in that same house. For 4 of us, that's at least 20 years in the same house.

About 4 years ago, my mom sold the house we grew up in. She had lived there for close to 50 years.

 

[eliza61]

It really does depend on the circumstances.

As I get older I really believe home ownership is not all it's cracked up to be. I recently downsized to a townhome with a HOA. Love it. Basically took over the upkeep. now I do own it but it was a close call between that and renting a condo.

Ask yourself
How long are you going to stay in the area
How's the market
what the monthly cost of upkeep and maintaining will be.

Good luck.

If I move to another state when I get older I will definitely be a renter.

 

[crisi]

How funny! Dh & I were just saying how much we enjoyed our condo. No shoveling snow, cutting grass, etc. Heck we didn't even own a hose or lawnmower. In spring, we'd come home to see flowers planted. Pool was included. We bought it in 93 and stayed for 3 years before buying our single home we're in now.
It is a lot of maintenance because it was built in the early 60s but luckily dh is extremely handy.
We have agreed if one wants to be a homeowner, he/she either needs to be very handy or have plenty of $ to pay for maintenance. Unfortunately, his sister was in neither of these categories, insisted on a single home which needed a lot of work by the time she sold it.

The only negative I can think of was that there were so many rules living in a condo. When decorative flags first became trendy, they were banned. Also when the condo association first stated that people could get screen doors, they had to be purchased through the association and have them install it too. They wanted $300 and dh was peeved that it wasn't such a high quality door to justify the cost and he could install it himself and save $ but they wouldn't let us. Understandably, they wanted all the doors to match but still, it was frustrating. Our condo didn't have a garage so if we ever go back to a condo/townhouse, it will definitely have a garage, preferably 2-car. That was top on my list of requirements when shopping for a single, besides central air.

We had an apartment for 1 yr before the condo and that was our least favorite place. Sure no maintenance but many renters (not all) are not very concerned about keeping a place looking nice. Homeowners have more invested in their home or condo so they tend to put more effort into taking care of the place though not all do.

My parents just sold the family home (which was on a lake - so a LOT of expense and upkeep - big yard, put the dock in, take the dock out, the lake weeds, beach maintenance, additional insurance) and bought a townhouse - with a three car garage, that is almost the size of the home they left (which wasn't small). They have less than $200 a month in HOA fees, but no shoveling, lawn mowing, their homeowners insurance is much lower (the HOA would reroof or handle exterior damage through their insurance - including most storm damage), lower taxes. My mother would spend $500 a year in annuals for the yard - now it will be three pots.

Its still buying instead of renting - they still have to replace their own refrigerator if it breaks and hire a painter (they are in their 70s). They are still tied into owning - if they need to move they need to sell.

I wanted the yard with kids - and my teenaged son has built a pitching mound in the back yard - not something your average HOA is going to permit. But once the kids are gone, if my weeding is down to three planters I would be THRILLED.