Why Not to Buy a Home

[longknife]

In my lifetime, I’ve only “owned” one home and that’s because my wife at the time wanted one better than the one she had. My current wife has been nagging me for 25 years to buy a home and I’ve done my best to deal with it – we still rent.

Here’s a financial planners reasons for not buying:

1. Single family homes are not good investments

2. There's an opportunity cost to saving (for a down payment) versus investing

3. It's harder to manage cash flow as a homeowner, making it difficult to consistently invest

4. A house can limit your freedom and flexibility

5. Renting means getting to live lighter

6. I'm just not interested [This is me!]

Explanations @ I'm a financial planner — here's why I won't buy a home

 

[william the wie]

good points.

 

[Kat]

Sorry. I love my home, and renting sucks.

 

[iamwhatiseem]

Interesting.
The one thing I can agree with 100% is owning a home places shackles on mobility.
You are grounded to your location, there is no argument to that.
Also if you own a home in an area where home prices make sense, and want/need to move to a new location where the home prices are insane - it makes it virtually impossible to do so.

Having said that.... rent pricing is escalating wildly.
In just 5 years rent has increased 27%.
So, is it still true that you have an increased ability to save?

 

[iamwhatiseem]

Not to mention, of course, most older folks live "free" since their home is paid off.
Trying to pay rent on a limited income would be terrifying

 

[william the wie]

The main question for rent or buy is whether you have children/pets that need a yard

 

[JakeStarkey]

Buying generally makes more economic sense in the long run.

However, if one values mobility, then rent.

 

[iamwhatiseem]

The main question for rent or buy is whether you have children/pets that need a yard

Not anymore friend.
Buying vs. Renting wasn't even an argument from around 1940 - 1990's.
During those years the average American only worked (Full Time) for 2 companies. Many just one.
There was a term back then that doesn't apply anymore - job security. If you got a job with a company you had a very good chance of staying there until you retired. And you got a pension that kept paying you after you retired!!...something else that doesn't exist anymore (for most)

Today, people are moving from job to job...and therefore location to location. Getting a job at one location and staying there till you retire is virtually unheard of.
So, the need to be able to relocate is a significant factor.

 

[HereWeGoAgain]

We've always made money on any property we've sold.
We also havent had a house payment for 25 years.
I'll stick to buying.

 

[iamwhatiseem]

We've always made money on any property we've sold.
We also havent had a house payment for 25 years.
I'll stick to buying.

I assume in making money you included mortgage payments as part of the investment...guessing you are including that.

 

[JakeStarkey]

If we sell certain properties in SLC, we will make almost two times what we paid for the place seven years ago, including payments, interest, taxes, and insurance.

However . . . replacement in SLC would cost just as much right now. However, if it put to use in East or Central Texas, or in New Mexico, there would be quite an advantage in investing it.

 

[HereWeGoAgain]

We've always made money on any property we've sold.
We also havent had a house payment for 25 years.
I'll stick to buying.

I assume in making money you included mortgage payments as part of the investment...guessing you are including that.

We've only had a mortgage on the first house we bought after we got married.
Paid 75k for it and paid it off in 12 years and sold it for 114k the following year.
Ever since we've paid cash.
Our current homes monthly mortgage would be around $2500 a month if we made payments.
We've lived here for 13 years without a mortgage payment.
Saving us a shit ton of money.

 

[OnePercenter]

You should buy but not live in the property.

 

[HereWeGoAgain]

You should buy but not live in the property.

So you should live in the streets while you have a perfectly good home?

 

[Natural Citizen]

Sorry. I love my home, and renting sucks.

Agreed.

 

[MarathonMike]

I've owned homes since I was 24. Whether primary residences or rentals they were all very good investments. Now if you happen to be a good investor, can you do better by renting? Sure, but not many people fall into that category. Can you lose money buying a home? Oh yeah big time. Remember the real estate bubble of about 10 years ago? But owning your home is still a good investment in the long run aside from the personal benefits of home ownership. Privacy, stability, having a place that is truly yours to put your own personal stamp on.

 

[Kat]

I've owned homes since I was 24. Whether primary residences or rentals they were all very good investments. Now if you happen to be a good investor, can you do better by renting? Sure, but not many people fall into that category. Can you lose money buying a home? Oh yeah big time. Remember the real estate bubble of about 10 years ago? But owning your home is still a good investment in the long run aside from the personal benefits of home ownership. Privacy, stability, having a place that is truly yours to put your own personal stamp on.

The Privacy thing is HUGE for me. I have been walked in on by maintenance in the past. Was not good.

 

[HereWeGoAgain]

Thats like renting a vehicle.
You cant modify it and you'll never pay it off.
Screw that.

 

[edward37]

We've always made money on any property we've sold.
We also havent had a house payment for 25 years.
I'll stick to buying.

I assume in making money you included mortgage payments as part of the investment...guessing you are including that.

We've only had a mortgage on the first house we bought after we got married.
Paid 75k for it and paid it off in 12 years and sold it for 114k the following year.
Ever since we've paid cash.
Our current homes monthly mortgage would be around $2500 a month if we made payments.
We've lived here for 13 years without a mortgage payment.
Saving us a shit ton of money.

Smart ,,,,,,I couldn't afford to not have a mortgage but lowered my payments as rates went down Then paid it all off after 10 years still in the same home for 25 years Tripled in value

 

[HereWeGoAgain]

We've always made money on any property we've sold.
We also havent had a house payment for 25 years.
I'll stick to buying.

I assume in making money you included mortgage payments as part of the investment...guessing you are including that.

We've only had a mortgage on the first house we bought after we got married.
Paid 75k for it and paid it off in 12 years and sold it for 114k the following year.
Ever since we've paid cash.
Our current homes monthly mortgage would be around $2500 a month if we made payments.
We've lived here for 13 years without a mortgage payment.
Saving us a shit ton of money.

Smart ,,,,,,I couldn't afford to not have a mortgage but lowered my payments as rates went down Then paid it all off after 10 years still in the same home for 25 years Tripled in value

Being DINKS made it much easier.