Owning a home or a house

[Toddsterpatriot]

Depends on your stability

Financially, geographically and emotionally

Owning a house is cheaper than renting and gives you the satisfaction of ownership and a long term financial investment

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......

It's not the deductibility, it's the size of the itemized deductions versus the standard deduction.

Good point

Used to be deductible until Trump raised the standard deduction to 24,000. Used to be easier for homeowners to meet the standard deduction. Now, you break even

Trump has made home ownership less desirable

Only in places with higher taxes.

 

[rightwinger]

Depends on your stability

Financially, geographically and emotionally

Owning a house is cheaper than renting and gives you the satisfaction of ownership and a long term financial investment

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......

It's not the deductibility, it's the size of the itemized deductions versus the standard deduction.

Good point

Used to be deductible until Trump raised the standard deduction to 24,000. Used to be easier for homeowners to meet the standard deduction. Now, you break even

Trump has made home ownership less desirable

Only in places with higher taxes.

Actually more so in places with low taxes
Makes it harder to exceed the standard deduction

Less desirable to own a home under Trump

 

[iamwhatiseem]

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......

It's not the deductibility, it's the size of the itemized deductions versus the standard deduction.

Good point

Used to be deductible until Trump raised the standard deduction to 24,000. Used to be easier for homeowners to meet the standard deduction. Now, you break even

Trump has made home ownership less desirable

Only in places with higher taxes.

Actually more so in places with low taxes
Makes it harder to exceed the standard deduction

Less desirable to own a home under Trump

You need to find a hobby.

 

[Toddsterpatriot]

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......

It's not the deductibility, it's the size of the itemized deductions versus the standard deduction.

Good point

Used to be deductible until Trump raised the standard deduction to 24,000. Used to be easier for homeowners to meet the standard deduction. Now, you break even

Trump has made home ownership less desirable

Only in places with higher taxes.

Actually more so in places with low taxes
Makes it harder to exceed the standard deduction

Less desirable to own a home under Trump

Actually more so in places with low taxes

Actually, you're wrong.

Makes it harder to exceed the standard deduction

Hard to exceed the standard deduction in low tax areas.

 

[hjmick]

Depends on your stability

Financially, geographically and emotionally

Owning a house is cheaper than renting and gives you the satisfaction of ownership and a long term financial investment

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

Not for the landlord...


I'd rather pay my mortgage than someone else's...

 

[hjmick]

What's your opinion on owning a home or a house in this economy, particularly in regards to younger people who aren't married, and aren't sure about marrying or having children?

I've known some younger people (e.x. younger married couples) who inherited property or had family members buy it for them; or disregarding that, are there other living arrangments (e.x. renting an apartment or RV; living with a relative) you would recommended.

I'd be tempted to ask the same question in regards to owning a car of vehicle - for a younger person without children or a family to support, would other options (e.x. public transportation, moped/motorcycle, bicycle/electric bicycle) be a better investment?

Thanks.

You'll never get ahead paying someone else rent. If you own you get to keep at least a little of your payment whereas 100% of your rent money is just pissed away never to be seen by you again....

That is not true.
You need to stop considering monthly cost, and start considering overall costs.
Renting is much cheaper in the short run.
Renting does NOT come with:
1) Closing costs...depending on the cost of course, but easily 2 -3 months in rent in costs
2) No property taxes.
3) Usually no water or gas bills.
4) Insurance is half what home insurance is at least.
5) Interest costs for the first 5 years of a mortgage is almost 100%. You will not get that back.
6) Repair costs and improvement costs.

Owning a home is a much better use of your money but ONLY if you live there for several-several years.

In my neck of the woods, renting is more expensive than owning. I could rent my home for $850.00 more per month than my monthly home expenses... mortgage, insurance, et cetera...

 

[Ringel05]

Depends on your stability

Financially, geographically and emotionally

Owning a house is cheaper than renting and gives you the satisfaction of ownership and a long term financial investment

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

I'm just pointing out there are two schools of thought on this subject and the argument continues to this day.

Which is what I said in my first post. Depends on your stability

If you are not going to be in the house at least five years it may be cheaper to rent

Not what I'm saying. There are studies that claim it's cheaper to rent when all the costs are factored in, some economists claim owning a house even over a long period still results in a net loss over renting.

 

[iamwhatiseem]

Depends on your stability

Financially, geographically and emotionally

Owning a house is cheaper than renting and gives you the satisfaction of ownership and a long term financial investment

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

I'm just pointing out there are two schools of thought on this subject and the argument continues to this day.

Which is what I said in my first post. Depends on your stability

If you are not going to be in the house at least five years it may be cheaper to rent

Not what I'm saying. There are studies that claim it's cheaper to rent when all the costs are factored in, some economists claim owning a house even over a long period still results in a net loss over renting.

The argument will forever exists because it is not a static argument.
There are areas of the country where rent is staggering high, I live in a college town, has the highest rent in the state. The average 1 bdrm apt. is higher than the mortgage of a 3 bedroom house including taxes/ins.
Drive just 15 miles away and that same apartment will be 40% less.
There is no right answer. There is no wrong answer. It depends on all of the variables of each scenario.
Generally speaking, home ownership wins in the long run, rent wins in the short run. But that is not always true.

 

[HenryBHough]

If you're in your 20s and don't own a house don't buy one now.

Save as much as you can.

Sooner or later America will elect another Democrat and there'll be a total collapse of the housing market. Then you can pick up a really nice place for about 8-cents on the dollar. Provided your savings are in precious metals.

 

[rightwinger]

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......

It's not the deductibility, it's the size of the itemized deductions versus the standard deduction.

Good point

Used to be deductible until Trump raised the standard deduction to 24,000. Used to be easier for homeowners to meet the standard deduction. Now, you break even

Trump has made home ownership less desirable

Only in places with higher taxes.

Actually more so in places with low taxes
Makes it harder to exceed the standard deduction

Less desirable to own a home under Trump

You need to find a hobby.

No idea what you are babbling about
You have to find a better argument

 

[rightwinger]

Depends on your stability

Financially, geographically and emotionally

Owning a house is cheaper than renting and gives you the satisfaction of ownership and a long term financial investment

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

I'm just pointing out there are two schools of thought on this subject and the argument continues to this day.

Which is what I said in my first post. Depends on your stability

If you are not going to be in the house at least five years it may be cheaper to rent

Not what I'm saying. There are studies that claim it's cheaper to rent when all the costs are factored in, some economists claim owning a house even over a long period still results in a net loss over renting.

Given you build no equity over time and have no tax advantages in renting, I call Bullshit

 

[Ringel05]

Not necessarily when one considers property taxes and interest not to mention maintenance which statistics show usually offsets anything that can be deducted from taxes. As for the investment question real property doesn't always keep up with inflation often resulting in a net loss over time.

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

I'm just pointing out there are two schools of thought on this subject and the argument continues to this day.

Which is what I said in my first post. Depends on your stability

If you are not going to be in the house at least five years it may be cheaper to rent

Not what I'm saying. There are studies that claim it's cheaper to rent when all the costs are factored in, some economists claim owning a house even over a long period still results in a net loss over renting.

Given you build no equity over time and have no tax advantages in renting, I call Bullshit

I'm not arguing for or against just presenting other's arguments. Heck, we just bought a house last May.

 

[rightwinger]

When you consider mortgage rates below 4 percent and the deductibility of interest and taxes......owning is cheaper

Maintenance is paid through your rent whether you know it or not

Paying rent is ALWAYS a net loss

I'm just pointing out there are two schools of thought on this subject and the argument continues to this day.

Which is what I said in my first post. Depends on your stability

If you are not going to be in the house at least five years it may be cheaper to rent

Not what I'm saying. There are studies that claim it's cheaper to rent when all the costs are factored in, some economists claim owning a house even over a long period still results in a net loss over renting.

Given you build no equity over time and have no tax advantages in renting, I call Bullshit

I'm not arguing for or against just presenting other's arguments. Heck, we just bought a house last May.

I am saying their argument is Bullshit

If you pay less per month to own, get tax advantages, accumulate equity over time and see an increase of value over time......how does renting save you money?

 

[Ringel05]

I'm just pointing out there are two schools of thought on this subject and the argument continues to this day.

Which is what I said in my first post. Depends on your stability

If you are not going to be in the house at least five years it may be cheaper to rent

Not what I'm saying. There are studies that claim it's cheaper to rent when all the costs are factored in, some economists claim owning a house even over a long period still results in a net loss over renting.

Given you build no equity over time and have no tax advantages in renting, I call Bullshit

I'm not arguing for or against just presenting other's arguments. Heck, we just bought a house last May.

I am saying their argument is Bullshit

If you pay less per month to own, get tax advantages, accumulate equity over time and see an increase of value over time......how does renting save you money?

I know what you're saying, argue it with them not me, I've made my choice.

 

[Correll]

What's your opinion on owning a home or a house in this economy, particularly in regards to younger people who aren't married, and aren't sure about marrying or having children?

I've known some younger people (e.x. younger married couples) who inherited property or had family members buy it for them; or disregarding that, are there other living arrangments (e.x. renting an apartment or RV; living with a relative) you would recommended.

I'd be tempted to ask the same question in regards to owning a car of vehicle - for a younger person without children or a family to support, would other options (e.x. public transportation, moped/motorcycle, bicycle/electric bicycle) be a better investment?

Thanks.

When I was young, I lived with multiple roommates and split the rent. It made a very limited income, go quite far.


Very good plan for someone trying to save.


Living at home, until you save enough for a down payment on a house, even if you don't buy the house immediately, is a good idea.


IMO, multi-generational living, is going to be more and more popular, if housing costs continue to climb.

 

[Andylusion]

What's your opinion on owning a home or a house in this economy, particularly in regards to younger people who aren't married, and aren't sure about marrying or having children?

I've known some younger people (e.x. younger married couples) who inherited property or had family members buy it for them; or disregarding that, are there other living arrangments (e.x. renting an apartment or RV; living with a relative) you would recommended.

I'd be tempted to ask the same question in regards to owning a car of vehicle - for a younger person without children or a family to support, would other options (e.x. public transportation, moped/motorcycle, bicycle/electric bicycle) be a better investment?

Thanks.

You should never buy a home, unless you can actually afford the 20% down, and you have money to maintain a home.

When you rent, and the roof leaks, you call the landlord, and they fix it. When the HVAC dies, you call the Landlord, and they fix it.

When you own a house, and roof leaks, it's thousands of dollars. The HVAC dies, and it's $5,000. The bathroom has water damage, and it's thousands.
Regardless of if you are married, or single, this is the reality.

Owning a home, in the long run is a wise financial move.... if you have the finances for it.

This is generally true for all people, and the math is pretty simple.

Say you lock in a mortgage of say $800 a month, which is doable for a $100,000 home.

In 20 years, the a comparable rental unit will increase in price every year or so, so that you end up almost doubled the price.
In 20 years, you are still paying $800 a month (unless you paid it off already), and the renters are paying $1,500 a month.

Equally as you pay down the mortgage, you'll have equity in the house. Where as rent is just gone.

Now again, this assumes you have a large enough income, that the house doesn't bankrupt you with repairs, which are inevitable.

The only time renting is consistently preferable to owning, is if you are in an unstable situation. If you are a member of the government, or military that is moved around constantly, then don't buy. Never buy a house, unless you intend to be in that location for 5 to 10 years.

I'd be tempted to ask the same question in regards to owning a car of vehicle - for a younger person without children or a family to support, would other options (e.x. public transportation, moped/motorcycle, bicycle/electric bicycle) be a better investment?​

It all depends. For me, I'd rather die, than ride public transportation. But of course I'm in Ohio, where getting to work is never difficult.

Bikes, are fine, and cheaper... but we have snow here, and you are going to end up a hood ornament.

If you live in places that are super expensive with parking, and have very little if any snow.... then a bike is a reasonable investment. Knew a girl in Seattle where it rarely ever snows, and parking is insane. She saved somewhere around $2,000 a year using a motorcycle, just because of the free parking for bikes.

If you intend to buy a car, I have no problem with it... but you really shouldn't buy a new car, unless you really have the cash. Cars go down in value you like a rock. Buying a bran new car, will feel great... but you are in fact tying yourself to a fiscal boat anchor, that will drag you down.

Buy a 3-year old car, for almost 3/4 to half the price, and save tons of money.

I've known some younger people (e.x. younger married couples) who inherited property or had family members buy it for them; or disregarding that, are there other living arrangments (e.x. renting an apartment or RV; living with a relative) you would recommended.​

I am utterly against living with relatives. I think there are some aspects of a mature man, that are impossible to get without leaving home.

Now I understand sometimes the arrangement is too perfect to pass up, such as a place to live, for almost nothing, that is 5 minutes from work. Or possibly you have a financial crash that makes living on your own impossible.

However, in all cases it is better for you to live on your own, under the pressure and the reward, of living on your own income. In all cases, you should be looking forward to a time where you live on your own, no matter how long or short a time you live with relatives.

younger people who aren't married, and aren't sure about marrying or having children​

Everything I said, applies to people with, or without kids, who are or are not married.

Doesn't matter.

When you get married, whatever choices you make will have be in connection with your wife. Happy wife, happy life. That's how it works.

As for kids... the only consideration is, when they get to be 2-15, are you going to want them inside all day? In which case, you'll need more house space, or more discipline.

I was baby sitting for a family of 8 kids. They were all perfect angels. They were not loud. Didn't fight. They played, but were not obnoxious. But that takes a real father, being fatherly and disciplining. If you don't intend to do that, then your kids will be crazy, and you'll need a huge house, so you can keep the rec-room on the opposite side of where you are.

Or you'll need a backyard, and kick the kids outside constantly. My sister does that.

And all that means to you is, you can't buy a condo, or townhouse. You'll need a real house, with large rooms, or a large yard, or both.

 

[HereWeGoAgain]

What's your opinion on owning a home or a house in this economy, particularly in regards to younger people who aren't married, and aren't sure about marrying or having children?

I've known some younger people (e.x. younger married couples) who inherited property or had family members buy it for them; or disregarding that, are there other living arrangments (e.x. renting an apartment or RV; living with a relative) you would recommended.

I'd be tempted to ask the same question in regards to owning a car of vehicle - for a younger person without children or a family to support, would other options (e.x. public transportation, moped/motorcycle, bicycle/electric bicycle) be a better investment?

Thanks.

You should never buy a home, unless you can actually afford the 20% down, and you have money to maintain a home.

When you rent, and the roof leaks, you call the landlord, and they fix it. When the HVAC dies, you call the Landlord, and they fix it.

When you own a house, and roof leaks, it's thousands of dollars. The HVAC dies, and it's $5,000. The bathroom has water damage, and it's thousands.
Regardless of if you are married, or single, this is the reality.

Owning a home, in the long run is a wise financial move.... if you have the finances for it.

This is generally true for all people, and the math is pretty simple.

Say you lock in a mortgage of say $800 a month, which is doable for a $100,000 home.

In 20 years, the a comparable rental unit will increase in price every year or so, so that you end up almost doubled the price.
In 20 years, you are still paying $800 a month (unless you paid it off already), and the renters are paying $1,500 a month.

Equally as you pay down the mortgage, you'll have equity in the house. Where as rent is just gone.

Now again, this assumes you have a large enough income, that the house doesn't bankrupt you with repairs, which are inevitable.

The only time renting is consistently preferable to owning, is if you are in an unstable situation. If you are a member of the government, or military that is moved around constantly, then don't buy. Never buy a house, unless you intend to be in that location for 5 to 10 years.

I'd be tempted to ask the same question in regards to owning a car of vehicle - for a younger person without children or a family to support, would other options (e.x. public transportation, moped/motorcycle, bicycle/electric bicycle) be a better investment?​

It all depends. For me, I'd rather die, than ride public transportation. But of course I'm in Ohio, where getting to work is never difficult.

Bikes, are fine, and cheaper... but we have snow here, and you are going to end up a hood ornament.

If you live in places that are super expensive with parking, and have very little if any snow.... then a bike is a reasonable investment. Knew a girl in Seattle where it rarely ever snows, and parking is insane. She saved somewhere around $2,000 a year using a motorcycle, just because of the free parking for bikes.

If you intend to buy a car, I have no problem with it... but you really shouldn't buy a new car, unless you really have the cash. Cars go down in value you like a rock. Buying a bran new car, will feel great... but you are in fact tying yourself to a fiscal boat anchor, that will drag you down.

Buy a 3-year old car, for almost 3/4 to half the price, and save tons of money.

I've known some younger people (e.x. younger married couples) who inherited property or had family members buy it for them; or disregarding that, are there other living arrangments (e.x. renting an apartment or RV; living with a relative) you would recommended.​

I am utterly against living with relatives. I think there are some aspects of a mature man, that are impossible to get without leaving home.

Now I understand sometimes the arrangement is too perfect to pass up, such as a place to live, for almost nothing, that is 5 minutes from work. Or possibly you have a financial crash that makes living on your own impossible.

However, in all cases it is better for you to live on your own, under the pressure and the reward, of living on your own income. In all cases, you should be looking forward to a time where you live on your own, no matter how long or short a time you live with relatives.

younger people who aren't married, and aren't sure about marrying or having children​

Everything I said, applies to people with, or without kids, who are or are not married.

Doesn't matter.

When you get married, whatever choices you make will have be in connection with your wife. Happy wife, happy life. That's how it works.

As for kids... the only consideration is, when they get to be 2-15, are you going to want them inside all day? In which case, you'll need more house space, or more discipline.

I was baby sitting for a family of 8 kids. They were all perfect angels. They were not loud. Didn't fight. They played, but were not obnoxious. But that takes a real father, being fatherly and disciplining. If you don't intend to do that, then your kids will be crazy, and you'll need a huge house, so you can keep the rec-room on the opposite side of where you are.

Or you'll need a backyard, and kick the kids outside constantly. My sister does that.

And all that means to you is, you can't buy a condo, or townhouse. You'll need a real house, with large rooms, or a large yard, or both.

Agree for the most part.
We dont have kids but we want to own our own home and not be subject to the whims of a landlord.
I want to install a pool? Tough shit if you rent unless of course you're an idiot.
I cant imagine retiring and not having that huge lump sum of a paid off house to get you ready for the rest of your life.

Like I said earlier,we havent had a house payment in over 20 years.
During those 20 years we banked the money that would have gone to rent or payments and we get to sell the home for far more than we paid.

While home ownership isnt for everyone it is for those who think about the future.

 

[Paulie]

If you’re renting in this economy you’re an idiot.

 

[initforme]

If you cannot pay the entire price off at purchase it is not a good idea to buy.

 

[initforme]

Young married couples who have kids should not carry a mortgage payment.