It's been a big week at my house~~

[bsmcneil]

Big week indeed!

 

[tvguy]

6.2% on a standard 30 year fixed rate mortgage on a house that costs $225,000 (lowest average cost in the US) = $271,100 of interest paid.

Not counting all the other fees that come along with home ownership, that's a grand total of $496,100 paid for a $225,000 property.

That's freaking crazy.

I do not understand the joy of home ownership.

Figure out what people who rent spend in that time frame and you will fully understand why people buy houses. Simply put, as a renter you are paying ALL the landlords expenses....that mortgage....that interest, plus profit for the landlord.

 

[Clifton Tesh]

Figure out what people who rent spend in that time frame and you will fully understand why people buy houses. Simply put, as a renter you are paying ALL the landlords expenses....that mortgage....that interest, plus profit for the landlord.

It will take roughly $1378 a month for 30 years to equal the same.

Now I completely understand that rent will go up but rent transfers most of the liability to the landlord when owning transfers 100% of the liability to you.

When a tree root grew through our main drain and they had to destroy the slab foundation our house sits on to fix it, that $25,000 cost was not on me.

When the power company made upgrades that required the equipment in the house be updated to current code, that $12,000 cost was not on me.

When the roof needed to be replaced, guess who didn't have to pay for it?

Had some large trees in the backyard that were being eaten by ash boring beetles, $5000 to have them removed due to size and location, yep, you guessed it, not on me.

Property taxes every year... Not mine

The price one pays to own a home is so much more than just the cost of the mortgage.

 

[tvguy]

It will take roughly $1378 a month for 30 years to equal the same.

Now I completely understand that rent will go up but rent transfers most of the liability to the landlord when owning transfers 100% of the liability to you.

When a tree root grew through our main drain and they had to destroy the slab foundation our house sits on to fix it, that $25,000 cost was not on me.

When the power company made upgrades that required the equipment in the house be updated to current code, that $12,000 cost was not on me.

When the roof needed to be replaced, guess who didn't have to pay for it?

Had some large trees in the backyard that were being eaten by ash boring beetles, $5000 to have them removed due to size and location, yep, you guessed it, not on me.

Property taxes every year... Not mine

The price one pays to own a home is so much more than just the cost of the mortgage.

Of course ALL of that is yours. Landlords would go bankrupt if they didn't charge enough rent to cover all those expenses.

 

[leebee]

Where are they moving? Not to far from you I hope. The little guy is sure going to miss you.

They are in the same small town, about a 15 minute drive from where we are now. You are right; he's excited about the new place but not so excited about leaving us behind, but his school is a 5 minute walk from our house, so we'll see him a lot- I hope! That's the plan, at least!

Good luck. And WOW, rents are low where you live. My daughter owns half a duplex. 3 bedroom, 1 bath 919 square feet. Her payment is $1,000 a month. The identical duplexes around her rent for $2,000 a month. She bought because she couldn't afford to rent.

Hmmm... not sure about the "low rent" thing. The apartment they vacated 2.5 years ago was so small your knees hit the bathtub when you sat on the toilet; my master bathroom is bigger than the "second bedroom" at this old place (it was 8'X9'). A friend is the handyperson there; he said the rent is now $2200 a month for about 600sqft (maybe smaller).

 

[tvguy]

They are in the same small town, about a 15 minute drive from where we are now. You are right; he's excited about the new place but not so excited about leaving us behind, but his school is a 5 minute walk from our house, so we'll see him a lot- I hope! That's the plan, at least!

Hmmm... not sure about the "low rent" thing. The apartment they vacated 2.5 years ago was so small your knees hit the bathtub when you sat on the toilet; my master bathroom is bigger than the "second bedroom" at this old place (it was 8'X9'). A friend is the handyperson there; he said the rent is now $2200 a month for about 600sqft (maybe smaller).

Your post said it went up to $1,300. That would be low rent to me. $2,200 would going rate for an apartment that size here.
You do have a large bathroom. My master bath is 5 x 9 as is the mirror image guest bathroom that backs up to it....what the contractors referred to as a "standard sized bathroom" when they were bidding on our remodeling project. Our third bathroom is
3 x 5. The minimum bedroom size by code is 70 square feet, so 7 x 10 as an example. All three bedrooms in my daughters duplex are 9 x 10.

 

[CGB]

That's awesome! Congrats to them. I'm sure you'll miss them but how great they are getting back on more solid ground!

 

[Dan Murphy]

Wonderful news, leebee! You've been a safe haven for them and now they can proceed on plan. Best wishes for them, for you.

 

[LuvOrlando]

Amazing news that your kindness allowed your daughter's family to turn things around, best wishes for a peaceful day.

 

[Kathryn Merteuil]

Congratulations to them! It sounds like a very exciting time.

 

[mjkacmom]

It will take roughly $1378 a month for 30 years to equal the same.

Now I completely understand that rent will go up but rent transfers most of the liability to the landlord when owning transfers 100% of the liability to you.

When a tree root grew through our main drain and they had to destroy the slab foundation our house sits on to fix it, that $25,000 cost was not on me.

When the power company made upgrades that required the equipment in the house be updated to current code, that $12,000 cost was not on me.

When the roof needed to be replaced, guess who didn't have to pay for it?

Had some large trees in the backyard that were being eaten by ash boring beetles, $5000 to have them removed due to size and location, yep, you guessed it, not on me.

Property taxes every year... Not mine

The price one pays to own a home is so much more than just the cost of the mortgage.

Bought our home in 1997 for $170,000, twin home on the next block just sold for over $800,000 (one bathroom, we have an additional 1/2 bath). The majority of homes are selling for more than asking, realtors have no inventory. Folks pay to apply for rentals, end up just wasting their money.

 

[Clifton Tesh]

Bought our home in 1997 for $170,000, twin home on the next block just sold for over $800,000 (one bathroom, we have an additional 1/2 bath). The majority of homes are selling for more than asking, realtors have no inventory. Folks pay to apply for rentals, end up just wasting their money.

But see, you bought your house in a time where the market wasn't hyper inflated.

There was value in your paycheck and purchases.

You could survive on minimum wage.

The market is stupid right now. Three years ago my house was an $80,000 house now they say it's a $220,000 house.

Nothing has changed. I haven't updated anything, I haven't upgraded anything, nothing about my house has changed.

Sure, I can sell the house and make a $220,000 profit because I didn't buy the house (inherited it) but all I could do is turn around and buy the same size house or put a nice down payment on a larger house and then be locked into a huge payment with an astronomical amount of interest and that just doesn't sound fun to me.

I hate owning a home.

 

[soccerdad72]

I hate owning a home.

We get it - but why dump on a positive thread like this?

Congrats leebee - that's great for your family!

 

[Hisgirl]

I'm honestly so happy for them! Was afraid the thread was going in a different direction. I knew a family who took in the DD/SIL and children and after years they had to go through official eviction to get them out. SIL had gotten violent and threatening. It was awful.

It's so refreshing to hear this story! Good for them! I hope they won't live too far away so you can see the little one and babysit when you want!

 

[cabanafrau]

But see, you bought your house in a time where the market wasn't hyper inflated.

There was value in your paycheck and purchases.

You could survive on minimum wage.

The market is stupid right now. Three years ago my house was an $80,000 house now they say it's a $220,000 house.

Nothing has changed. I haven't updated anything, I haven't upgraded anything, nothing about my house has changed.

Sure, I can sell the house and make a $220,000 profit because I didn't buy the house (inherited it) but all I could do is turn around and buy the same size house or put a nice down payment on a larger house and then be locked into a huge payment with an astronomical amount of interest and that just doesn't sound fun to me.

I hate owning a home.

Real estate/home ownership have been the biggest driver and pathway to wealth building, which you yourself illustrated amidst your griping. Whether you've inherited 80k, 200k, or something in between, unless it's an absolute money pit you can't offload, what the heck is there to be so negative about?

I know so many friends of my daughters who are so disheartened to be shut out of the housing market currently because they recognize what a disadvantage that is for their financial future. Mortgage industry pro I know told me that common rule of thumb today is new homebuyers need an income or combined income of 150k to enter the market. Our younger daughter intends to hang back at home with us to save money while she's pursuing her master's and hoping to build a nest egg herself since she's currently single.

 

[Clifton Tesh]

We get it - but why dump on a positive thread like this?

Congrats leebee - that's great for your family!

Because I'm old and grumpy.

Honestly, wasn't necessarily trying to dump on the thread but seeing 6.2% interest maid my brain fry. That's a crazy ridiculous amount for a house but I see it's a great rate for this current market.

I haven't paid any attention to the current market I just know the last time I even looked home loan percentages were in the 2's.

Like I said, I'm old and grumpy and I need something to complain about.

 

[Pink Partridge]

Congratulations! Great news all around (right down to them not moving too far away..so you will be able to see the little guy).

Oh, and that Subaru is going to last another 20 years Ours would not die.