UmmiSays Posted February 19, 2014 Share Posted February 19, 2014 Hi All, So my Husband and I are thinking about purchasing a home. I have wanted to be homeowner for sooo long but as we get closer to actually doing it, I am having so many thoughts on not doing it. We currently rent a little townhouse, but for what we can afford in this area we will most likely only be able to purchase a townhouse and not the single family home I want. Plus, I am afraid of maintenance and future repairs, and our initial financial output to purchase. I keep thinking maybe we can be long-term renters and just invest our savings throughout the years and still come out ok, come retirement. Is that a crazy thought? Can you offer up advice/insight on this? I have been reading articles online about renting instead of buying but I cant find a plan on how to be financially secure at the end of the road. Thanks in advance Quote Link to comment Share on other sites More sharing options...
Catwoman Posted February 19, 2014 Share Posted February 19, 2014 Years ago, there was the assumption that homes would appreciate in value over the years, and that the purchase would be financially advantageous. That's not necessarily the case these days, so I don't think you should buy a place that you don't really love, just for the sake of owning a home. If your rent is reasonable and will allow you to keep saving more money, renting may very well be the best choice for you at this time. There is no real rush to buy. Quote Link to comment Share on other sites More sharing options...
Mrs Mungo Posted February 19, 2014 Share Posted February 19, 2014 We currently rent. We expect to only be here 2-3 years (3 *max* probably), so it doesn't make sense to buy here. We wouldn't have time to accrue enough equity to make it worth it, and property values are not growing here. We're renting the house we have because the owners were unable to sell it without taking a significant loss, and they've owned it 8 years. Quote Link to comment Share on other sites More sharing options...
mamaraby Posted February 19, 2014 Share Posted February 19, 2014 We lost $40k in the value of our home and while home values have increased lately, it's slow going. I'm not entirely confident that we will ever get that back. We need a new roof and gutters/soffit/fascia which I figure will be around $5k or more. It was $10k when we had to replace the furnace/air conditioner and then another $800 for the water heater/water softener. We also had to buy a new fridge, stove, and dishwasher. Then two years after we got the new dishwasher it started leaking and I'm on my second gasket. We're in the process of replacing rotten trim work and the bay window lost its seal so we need a new one of those. We're on our second lock/door handle for the front door and should probably replace it (again) or maybe even the door. Oh, and we had to put in a new exterior door to the garage, we're on our second motor for the exhaust fan in the bathroom and need a new one in the kitchen. All that to say, every time I turn around it seems like something needs to be fixed/replaced and there's no landlord to call to take care of it. Could I sell my house? Sure, but there's no guarantee I'll get what we paid for it. Sometimes I think we'd have been better off to put money in a savings account and rented. It's not that I regret it per se, but I don't think the old mindset about home ownership necessarily applies. Plus, if you're not particularly handy or don't have friends/family that can help, repairs around the house can really add up. Quote Link to comment Share on other sites More sharing options...
PinkyandtheBrains. Posted February 19, 2014 Share Posted February 19, 2014 I wish we hadn't bought, housing prices fell. I miss having a landlord fix everything. We had a good landlord though. Everything costs so much to fix, and something is always broken. Quote Link to comment Share on other sites More sharing options...
Aelwydd Posted February 19, 2014 Share Posted February 19, 2014 We really want and are seriously beginning to plan to live overseas. No point in buying if we're leaving anyway. Even if we stay however, I am not confident we're not just walking into the same trap pre-2008. I read a report just last week that another housing bubble has started. I have a lot of concerns. Quote Link to comment Share on other sites More sharing options...
WishboneDawn Posted February 19, 2014 Share Posted February 19, 2014 We own but this is the house we plan to live in until my husband retires. That's the kind of ownership that reliably builds equity. I think that if you aren't committed to staying in a house for at least a decade, renting is probably the better choice these days. Quote Link to comment Share on other sites More sharing options...
Desert Strawberry Posted February 19, 2014 Share Posted February 19, 2014 We bought a very inexpensive fixer-upper in a ...ahem...modest area. It was what we could afford when our rent increased and we couldn't stay where we were. My husband hates this house passionately, and the town more. I don't love it so much either. The market crashed shortly after we bought. Our house might be worth half what we paid, if we are very lucky. The repairs are never ending and expensive. It's a money pit. We are not saving on it. If I had it to do over, we would have rented something cheap (we were in a high rent area) until we could afford to buy something we really wanted. Now we are stuck here indefinitely, and will assuredly take a loss. Quote Link to comment Share on other sites More sharing options...
tammyw Posted February 19, 2014 Share Posted February 19, 2014 We rent, but we are military and have had to move every 3-4 years for the past 15 years of our marriage. We did own homes in two places and one we made money, the other we broke even after 7 years of owning (4 years of us living there; 3 years of renting it to another military family). The crazy thing is that prices had risen since we bought, then started to fall around the time we were leaving so we decided to rent it out, and they just kept falling. We should have sold when we left, as we would have done better. Moving here we considered buying but the economy was just too volatile, and we knew we might only be here 3-4 years, so we rented. It's worked out well for us. My husband is leaving the military (after 20 years) in a couple of months, and he is currently job hunting. If we land in a place we really want to be, we will buy. If we land in a place we really don't want to be, we'll consider it a temporary move (say a couple years) and will continue to rent. When we do finally buy again, I want it to be a house we absolutely love. I'm picky :) Quote Link to comment Share on other sites More sharing options...
WishboneDawn Posted February 19, 2014 Share Posted February 19, 2014 We really want and are seriously beginning to plan to live overseas. No point in buying if we're leaving anyway. Even if we stay however, I am not confident we're not just walking into the same trap pre-2008. I read a report just last week that another housing bubble has started. I have a lot of concerns. What?! Aren't you supposed to be moving to Canada? Do I have to revoke your honorary pretend citizenship? Quote Link to comment Share on other sites More sharing options...
Amira Posted February 19, 2014 Share Posted February 19, 2014 We've nearly always rented. The only time in 16 years when we didn't was when we built a house 12 years ago and lived in it for two years. I loved having our own home and especially planning the garden and taking care of the yard. We were able to sell the home quickly without a loss, but that was 10 years ago when it was easy to do that. There are major advantages to both renting and buying. Even though I was happy owning, I don't regret that we're renters. It fits our lifestyle better and I don't think everyone has to own a home. Quote Link to comment Share on other sites More sharing options...
NicksMama-Zack's Mama Too Posted February 19, 2014 Share Posted February 19, 2014 Deleted because I don't regret buying a house and after rereading the OP, I see the questions does not apply to my situation. K Quote Link to comment Share on other sites More sharing options...
Alenee Posted February 20, 2014 Share Posted February 20, 2014 I somewhat regret buying but only because the market fell shortly afterwards and now we're stuck. We'd love to move closer to our parish but can't foresee being able to get out of this house for years to come. Owning has its benefits: you always know what your payment will be (if you have a fixed-rate mortgage), no worries about landlords raising the rent. And if it's a good area, you can make some money. But other than that, I really don't see the point anymore with the way the market has been going. There are other ways to invest your money that seem smarter these days. Quote Link to comment Share on other sites More sharing options...
Carrie12345 Posted February 20, 2014 Share Posted February 20, 2014 It's not that I regret buying, but I wish we had waited a little while longer to purchase a forever home. (In as much as any home can be considered a forever home these days.) We bought our little house in rapidly growing area. We expected to upgrade along the way, like "normal" people. Then the real estate market did it's post-2005 thing. Then our area stopped growing. And then there was a mass exodus. (Seriously, our school district has lost 2,000 students since we moved here. Now we're trying to sell off school buildings, as are some surrounding districts!) Moving out of this place will take more money than we'll ever recoup. Quote Link to comment Share on other sites More sharing options...
Lara in Colo Posted February 20, 2014 Share Posted February 20, 2014 There are pros and cons to both Owning has repairs you must pay for owning means you take the hit if there is a disaster (flood) and insurance is a tricky thing these days owning means taking a hit if the market drops Owning means you can do what you want with the yard/house/paint Renting is great if the landlord is great. Even great landlords can: raise the rent sell the house I know a guy that rented the same house for thirty years. After thirty years he still had to pay rent. After thirty years my next door neighbors had their house paid off and bought a log cabin for vacations If you are in it for the long term and don't over buy (so that you cannot have savings for repairs) and have good insurance and have a husband who does repairs in a timely fashion---- owning is great. Everything else is just a trade off you must determine for yourself. Quote Link to comment Share on other sites More sharing options...
UmmiSays Posted February 20, 2014 Author Share Posted February 20, 2014 Thank you all for your insight. It gives me more to think about..... Quote Link to comment Share on other sites More sharing options...
Mergath Posted February 20, 2014 Share Posted February 20, 2014 We rent, and I prefer it at the moment. I'd rather be renting a single family home than a unit in a duplex, but that's a whole different post. ;) Dh would like to buy a house in a few years, but I'll be perfectly content to keep renting. Our toilet in our only bathroom quit working today. One quick call to the landlord, and the plumber was here within a couple hours and had everything fixed, along with a new seal on the toilet. No worries about paying for repairs. Dh doesn't have to spend his days off mowing the lawn, because all the yard work is included. When we find a house to rent, we can pick up and move with thirty days notice. No realtors, no keeping the house perfect until it sells, no anxious waiting. We don't have to worry about the property taxes shooting up, or the value of the house going way down. Our utilities are included in our rent, so we don't have to freak out if the price of natural gas shoots up. Our landlord lets us paint and pretty much do what we want as long as we aren't painting purple zebra stripes on the hardwood or something, so the place feels like our home. Quote Link to comment Share on other sites More sharing options...
UmmiSays Posted February 20, 2014 Author Share Posted February 20, 2014 Deleted because I don't regret buying a house and after rereading the OP, I see the questions does not apply to my situation. K Nooo, I am open to hearing both sides. I found value in what you typed but I had to step away from the computer for a bit before I could post. Now I can't remember what I was going to ask you... Quote Link to comment Share on other sites More sharing options...
UmmiSays Posted February 20, 2014 Author Share Posted February 20, 2014 There are pros and cons to both Owning has repairs you must pay for owning means you take the hit if there is a disaster (flood) and insurance is a tricky thing these days owning means taking a hit if the market drops Owning means you can do what you want with the yard/house/paint Renting is great if the landlord is great. Even great landlords can: raise the rent sell the house I know a guy that rented the same house for thirty years. After thirty years he still had to pay rent. After thirty years my next door neighbors had their house paid off and bought a log cabin for vacations If you are in it for the long term and don't over buy (so that you cannot have savings for repairs) and have good insurance and have a husband who does repairs in a timely fashion---- owning is great. Everything else is just a trade off you must determine for yourself. See, now this is why I sometimes want to buy. I don't like the idea of being at someone else's mercy. I am anxious every year when the lease is up, I hate that feeling. Plus, I'm ready to starting decorating. I want to make my house feel like a home and not a pit stop. Quote Link to comment Share on other sites More sharing options...
UmmiSays Posted February 20, 2014 Author Share Posted February 20, 2014 We rent, and I prefer it at the moment. I'd rather be renting a single family home than a unit in a duplex, but that's a whole different post. ;) Dh would like to buy a house in a few years, but I'll be perfectly content to keep renting. Our toilet in our only bathroom quit working today. One quick call to the landlord, and the plumber was here within a couple hours and had everything fixed, along with a new seal on the toilet. No worries about paying for repairs. Dh doesn't have to spend his days off mowing the lawn, because all the yard work is included. When we find a house to rent, we can pick up and move with thirty days notice. No realtors, no keeping the house perfect until it sells, no anxious waiting. We don't have to worry about the property taxes shooting up, or the value of the house going way down. Our utilities are included in our rent, so we don't have to freak out if the price of natural gas shoots up. Our landlord lets us paint and pretty much do what we want as long as we aren't painting purple zebra stripes on the hardwood or something, so the place feels like our home. This is why I want to rent! I don't know what to do. Really, I want the best of both worlds. The freedom of renting but the feeling of ownership. Quote Link to comment Share on other sites More sharing options...
milovany Posted February 20, 2014 Share Posted February 20, 2014 We've done both. I remember reading some articles a few years back that described why renting can be just as good (or even better) financially than buying. The traditional line is that you are building equity in a house that you can "earn" when you eventually sell, but one of the articles I read laid it out side by side and there wasn't actually all that much difference in the long run between the two. That was because of the $$ an owner has to pour into their property over the years, including property taxes and repairs and maintenance. And of course, interest! It wasn't that hard to see how it could be similar. That said, we did purchase about four years ago because we hadn't ever lived in one place for more than five years (usually it was 2-3 years), and we wanted to settle in somewhere. We'd purchased three times before, and none of them ever worked out the best financially for us (although they did for other reasons; not everything is financial). That was because we didn't stay as long as we thought we might. Another thing with ownership, if it's not your long-term, multi-year place, is that you don't have the freedom to up and move like you do with renting. You might not be able to sell. That happened with us a couple of times -- we were ready to GO but we had to wait on a buyer. Every situation is different. You'll just have to take info. and make the best decision you can. Quote Link to comment Share on other sites More sharing options...
GoVanGogh Posted February 20, 2014 Share Posted February 20, 2014 We bought our house 20 years ago. Housing prices have doubled since we bought and have stayed high. Our neighbors just sold their house in less than a week at twice what we paid for ours - similar floor plan, same age. Our house has been paid off for a few years, so it has been nice not paying on mortgage or paying rent. But we have had major house repairs lately (broken pipes under the foundation, wildlife moved into attic), with more major work needing done (driveway needs replaced, dated appliances and fixtures, etc). I often think about selling and moving to a townhouse without a yard and no maintenance. It is a trade-off either way, I think. As a pp said, if you aren't handy with home repairs (we arent), expect to pay for needed home repairs. Even though our house has been paid off, we have been putting all that money back into the house and don't expect that to end anytime soon. Quote Link to comment Share on other sites More sharing options...
Paige Posted February 20, 2014 Share Posted February 20, 2014 We currently rent and have owned homes in the past. I am really enjoying renting right now. We chose to rent because we knew we wouldn't be able to stay in the house long enough to break even if we bought. It is really nice when something goes wrong to know that it isn't our problem and the owner will fix it. It's really nice to know that when we move, we can just give notice and not worry about anything at all. Movers will come, we'll leave, and I won't have to worry about selling the house. Unfortunately for us, our rent is more than what our house payment would have been, but when considering the expenses for maintenance and selling the house when we leave, we come out ahead. We've sold two houses and the months we've spent with our house on the market and waiting for it to close have been some of the most stressful times we've had. That said, I look forward to living somewhere more long term eventually. I want to plant some fruit trees and be somewhere long enough to see them produce. I hate my appliances and would buy new ones if it was my own house. I won't buy the landlord new appliances.As an owner, you don't have to ask permission for pets and can do whatever you want. It is a pain sometimes to have to wait for the landlord to fix what needs fixing (Our a/c was out for over a month this summer) or to have to use the people the landlord picks. Our landlord is responsive and very conscientious, but playing telephone tag and passing messages back and forth between her, the people giving estimates, and us can add time and irritation to any issue we find. I wouldn't buy again unless it was somewhere I loved and intended to keep for a very long time, but I look forward to it. Quote Link to comment Share on other sites More sharing options...
Jackie Posted February 20, 2014 Share Posted February 20, 2014 I am currently renting by choice, with no plans to change that for the foreseeable future. I made this decision after owning two homes. We bought our first home 10 years ago. The mortgage (principal+interest) was roughly equivalent to our rent, but add on top of that the PMI, taxes, and basic maintenance. We could afford it when we moved in, but barely. We were lower income and our rent and mortgage were both super-low for this area; we lived in safe but generally lower-income neighborhoods. Then both our furnace and our water heater crapped out the first winter. We had so little money to fix or replace. We replaced the water heater and spent that winter with two space heaters - thank goodness the house was small. Our income went up substantially and we were able to do some renovations on the home. And fix the heater, obviously. We could then very comfortably afford our house with money to spare, but we also knew we could afford better. We were also planning on having a child and we had no space - it was a very small 2 bedroom and DH works from home. We bought the second house almost on a whim. We were going to open houses on and off just to check out neighborhoods. We fell in love with an awesome house - a well-known local architect had designed it for himself and lived in it for 35 years. The bones of the house were ah-maz-ing and it had features unheard of in our town; the house was in an upper-middle-class neighborhood. Unfortunately, he didn't marry an interior designer and the house was painfully out of date. Think mid-70's chic. The market had dropped and it wasn't selling. The price eventually fell to the point that, with a stretched budget, we could swing it and so we did. Unfortunately, this strapped our budget again. We couldn't afford to make the badly needed updates except in small fits and spurts. And I lived in fear of major expenses - if the furnace died on me again, we would be extremely stressed. That stress eventually wore on me and I decided to be done. We sold and started renting. We now rent in an awesome neighborhood. I love this area of town. Our rent cost is fair for what we have. We will be staying here at least three more years by our current plans, and the pure finances say that we would probably be about even with buying here. I'll rent anyway. I LOVE calling my landlord and telling him a skunk sprayed in our cellar. The skunk would have sprayed in our cellar if we rented or owned but it is HIS problem to fix the access, which will require repairs to the foundation. When the heat went out this past winter, HE had to get a repairman here quickly. When we first moved in and a pipe was busted, he had to have it fixed. I'm done owning for a while. Quote Link to comment Share on other sites More sharing options...
readinmom Posted February 20, 2014 Share Posted February 20, 2014 I regret fighting so hard to hang onto our house when dh lost his job several years ago. We were in a rough spot financially, and we negotiated and negotiated and pleaded with the lender to let us keep our home of 15 years. Now we regret it. We could have moved closer to my mom, and the house now needs repairs we can't afford. The market has not recovered and we are upside down. We knew going in that this was not our dream home. Our expectations have changed as we have gotten older, and now the dream home is one that is paid off. :laugh: Quote Link to comment Share on other sites More sharing options...
gingersmom Posted February 20, 2014 Share Posted February 20, 2014 I rented for about 10 years and hated every second of it. Change paint colors, change them back when you move. Want a big dog? Good luck finding someone to rent to you. I have had awful superintendents and even worse landlords. I have never lost money when buying/selling. Then again I never purchased something above my financial means and have always purchased in very good neighborhoods/good schools. My brother rented for nearly 25 years before buing something. I think he was insane. Then again my grandfather rented his whole life, invested in stock market and was a multi-millionaire. Quote Link to comment Share on other sites More sharing options...
Kari C in SC Posted February 20, 2014 Share Posted February 20, 2014 I know a guy that rented the same house for thirty years. After thirty years he still had to pay rent. After thirty years my next door neighbors had their house paid off and bought a log cabin for vacations . This to me is the key. We own 7 rental properties and just today I started to get financing for our 8th property. We are not rich people. We have just figured out how to use one house to buy another. Once I get tenants in there, they pay my mortgage. In the next 10 to 15 years, we will be collecting rent on all of these and will have no mortgages. I believe there is a time for being tenants, but IMHO at so e point you should want to quit buying a house for your landlord. Another thing that is true for many of my tenants is that if they would just buy a house like the one they are renting, their payment would actually be cheaper than the rent payment. I have to charge more because my taxes are 5 times what they would be if the house was owner occupied. As an example, we bought a house last year for roughly 100k. Our mortgage payment is $707. Our taxes, insurance and hoa fees run another $333 a month. We rent it for $1000 a month. We actually don't profit on it now, but our 15 year mortgage is being paid little by little. If the tenant bought this hour with a 30 year mortgage, their entire payment with principle, interest, taxes, insurance and hoa would be about $725 to $750 a month. So... They are paying more to live in a house that they will never own. I do realize some can't buy due to credit and other problems, but I have some tenants with great credit and employment. They just don't want to buy. I hope you find peace with whatever decision you make. Quote Link to comment Share on other sites More sharing options...
Aelwydd Posted February 20, 2014 Share Posted February 20, 2014 What?! Aren't you supposed to be moving to Canada? Do I have to revoke your honorary pretend citizenship? LOL. Canada may be where we end up. We are talking about spending a few years in S. Korea, Russia, New Zealand, other places. Sort of an extended venture, mostly to give ds opportunities to experience different cultures. I work in a tech job that is transportable. DH wants to teach English. We'll see. :) Quote Link to comment Share on other sites More sharing options...
Slache Posted February 20, 2014 Share Posted February 20, 2014 WARRANTY!! You need a warranty. I didn't want to fork out $400 a year for a warranty, but 2 years into home ownership we found out we needed $10,000 in water damage repair and all we had to cover was the $100 co-pay for our warranty. Quote Link to comment Share on other sites More sharing options...
Slartibartfast Posted February 20, 2014 Share Posted February 20, 2014 We are renting. We moved here about two years ago now and weren't familiar enough with the area to really know where we would want to live. We haven't chosen to buy a home because we are still uncertain, our parents are getting older and while we might love how beautiful it is here we are considering moving back. I will certainly miss the mountains but I do want to be closer to my family. Quote Link to comment Share on other sites More sharing options...
Jackie Posted February 20, 2014 Share Posted February 20, 2014 There is a calculator, through i think the New York Times, that lays out renting vs buying costs realistically. Use the advanced version of the calculator, use *realistic* numbers (are you going to remodel - change the numbers!) and it will give you the expectations. For those who consider long-term rental foolish - we "gained" $50k on the last house, but take into consideration interest, PMI, maintenance, renovations, and realtor fees and we lost quite a hit. For our current market-value rent, a house in our neighborhood at a fair price plus renovations would take 30+ years to break even. Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted February 20, 2014 Share Posted February 20, 2014 We bought in 2007. Enough said. That said, the way I see it is that if the loss we took on that boondoggle is the biggest problem in our 14 years together so far, we have nothing to complain about. May all our future problems be so small. Quote Link to comment Share on other sites More sharing options...
Incognito Posted February 20, 2014 Share Posted February 20, 2014 I might regret paying as much as we did for our most recent house, but we don't regret having bought our previous house. For us, the market was good - we got in early enough and there wasn't the same crash here as in the states. We made $150k on our house in 10 years - although we bought again in the same market, so we didn't really "make" any money, we just have a better house. What kind of house you buy is important - we bought one we could fix up and pour work into when we were younger and kidless. We worked on it hard for years, then still worked on it but less hard for more years. It was old and needed a lot of maintenance to keep it going well. We did that work. Now, we bought a newer house that will be much easier to maintain. It costs us more money, but less time. And the skills we gained on the first house make us better at maintaining this one as well. There is a LOT of work that goes into caring for a house - even a very good one. If you don't want that work, then you don't want to own. IMO. Quote Link to comment Share on other sites More sharing options...
DawnM Posted February 20, 2014 Share Posted February 20, 2014 We have always bought, even when we stayed a short time somewhere, but, the markets have been fine for that. These days though, I wouldn't be so quick to buy if I weren't sure we were staying. Our current house is fine. It is too far out for my liking, but DH and the kids love it and don't mind driving all over to get places, we here we stay. We could not get out of this house what we put in to it. Well, we could probably get what we paid, but not all the updates/upgrades/repairs. We have poured about $40,000 in to it after buying......new roof, new heat pumps for upstairs and down, new bathrooms, paint staining the cedar siding, and numerous other things. We need to put another $20K or so into it as some more things need to be done, but we live with them as is for now. Thankfully we do have a 15 year, 2.3% rate on our loan and when I think of the interest we were paying on a 30 year 5.5% loan. It is a HUGE difference in savings. Quote Link to comment Share on other sites More sharing options...
Jerico Posted February 20, 2014 Share Posted February 20, 2014 We bought a house and moved 20 months later. We lost almost all of our down payment. We rent in our new area for a few reasons 1) i do hope we only live here a few years, 2) we do not have any money for a down payment, 3) i like not having the responsibility when something breaks, and 4) property taxes are really high here. We wouldn't save much money every month especially factoring in repairs and maintenance, etc. I would like to buy in the future- something in a low price range and pay it off in 10 years or so to free up money for education as our children get older. Quote Link to comment Share on other sites More sharing options...
Joker Posted February 20, 2014 Share Posted February 20, 2014 We bought in 2007 right before everything exploded, so we're upside down even though we bought a tiny house so we could live comfortably. It sucks but our mortgage payment is still lower than rent and our taxes are less than $1000/year. We haven't had to do any repairs on the house as it was brand new when we moved in, so we're happy with our decision so far. I don't see us ever moving because by the time we could break even the mortgage would be so low that I don't think we could stomach starting over with a larger one. Quote Link to comment Share on other sites More sharing options...
marbel Posted February 20, 2014 Share Posted February 20, 2014 I don't see the point of regrets, because we do things based on what makes sense at the time. Sometimes that doesn't work out. We also bought in 2007 when we moved so my husband could go back to school. We were planning to live here only 4 years, but at that time the conventional wisdom was that it made sense to buy if staying in a house at least 3 years. There were other reasons we bought: lack of decent rental housing, desire for stability for our kids, desire to get a dog. We rented out our old house in which we had a lot of equity. Then the explosion came and both houses decreased in value. We eventually sold the rental and didn't lose money but didn't gain as much as we'd hoped (based on values pre-crash). We ended up not moving after 4 years which is a good thing because our house hasn't regained value, but sort of a bad thing because we don't love this house and now we may be here a long time. We didn't go underwater (or, maybe did but didn't stay under long,not sure) with our current house, so at least there's that. When we bought we had a decent interest rate, but when rates started going down we couldn't refinance for a while because of employment - even though we were having no trouble paying our mortgage, etc. So we missed the lowest of the rates. Eventually we were able to do a refi so that was good. So it would be easy to regret buying but what would be the point? We did what we thought was best at the time; we followed the "rules." Things change, and not always to our advantage. Quote Link to comment Share on other sites More sharing options...
lynn Posted February 20, 2014 Share Posted February 20, 2014 If you want to buy for investment, I am afraid those days are over in some areas. If you plan to live in your area for a long time you may consider buying rather than renting. What concerns me in renting for long periods of time is the rent going up more than the rentals worth, being at the mercy of a lease if you want to or have to move before the lease is up, or the landlord wants to sell the property. However, if you really like your rental and landlord is good, price is right why not stay. Quote Link to comment Share on other sites More sharing options...
Serenade Posted February 20, 2014 Share Posted February 20, 2014 One thing I've seen a lot of on this thread is the concern about repairs, and I think that is a valid concern. If you are handy, or your husband is handy, this risk can be minimized. LOL, and also if one actually has the time to do the repairs. I am lucky in that my husband can do most repairs on our house, but then again, sometimes it takes longer to get something done because he has to find the time to do it. I will say, though, that in the 18 years we've been married, we have paid very little for repairs, the most expensive being the repair and eventual replacement of an air conditioner, and then, after the one house was 20 years old, having the water heater replaced. (My husband had a house before we married, and now we rent it temporarily.) Repairs can also be minimized by keeping things in good shape, but that doesn't work in all cases. Today, I'm not sure I would want to buy a house if my husband wasn't handy with the tools. Even small repairs can be outrageous if you have to call someone in to fix something. Quote Link to comment Share on other sites More sharing options...
Kari C in SC Posted February 20, 2014 Share Posted February 20, 2014 My husband disagrees with me (I want to go back to apartment life after our kids are grown), and this is the argument he tosses at me when I mention apartments. But see, in this scenario, after 30 years, the homeowner may be mortgage-free, but he is still paying many thousands of dollars in various taxes each year, still has to pay for repairs - sometimes on short notice, and still has to carry homeowners insurance (which is way more costly than renters insurance). To me, it's a wash; a person is going to pay to live, whether they call the payments "rent" or "insurance and texes". I guess it depends on where you live. My real estate taxes are much higher for my rental properties, but my taxes on my primary home are only $700 a YEAR. I know that is not the case in many, many places. My insurance for my primary house is $900 a year. So both of these are relatively low. I think we might downsize at some point, but then we would need a smaller house with the huge garage we have because my dh collects way too much stuff. As far as paying taxes and insurance on the rental houses once they are paid for... It is just an expense of doing that business. I don't know what they will be bringing in after 10 years, but a simple example. Say, 7 houses bring in $10,000 total per month. Then you have to take $3000 out of that for taxes, insurance and hoa. We are still netting $7000 a month. All of the expenses and depreciation are tax deductible. Yes, you have to do repairs and maintenance. Again, unless, the repairs are over $7000 in a month, you are still making money. Quote Link to comment Share on other sites More sharing options...
UmmiSays Posted February 20, 2014 Author Share Posted February 20, 2014 I am very grateful to everyone who is contributing to this thread. Thank you so much! I am getting such an education. Quote Link to comment Share on other sites More sharing options...
mommymilkies Posted February 20, 2014 Share Posted February 20, 2014 When we bought this house, it passed our very strict inspection (for our type of loan) with flying colors. Turns out the inspector didn't try very hard. The boiler system was rusted through and duct taped together, the roof shingles flew off within a week of moving in, there was no support under the bathtub, so it cracked (plastic) quickly, one toilet has no ventilation so it won't flush right, and the porch was rotting through and I actually stepped through it. So yes, I regret buying. But now I know what to watch for! I want to own. I hate landlords (no offense). I don't like the idea that someone can just walk into my home whenever and do what they want. I like being able to paint and plant a garden. So we will likely buy again. Quote Link to comment Share on other sites More sharing options...
mamaraby Posted February 20, 2014 Share Posted February 20, 2014 Absolutely. You definitely save a lot of money if you are willing to tackle many of the repairs yourself. We had issues with the overflow valve on our hot water heater. My husband always gets nervous about anything in the plumbing realm. I'm like WE CAN DO THIS!! LOL And it turned out we could. We researched it on-line . Watched youtube videos. The people at Home Depot are often willing to give you pointers. So in the end it cost us the part ($20). If we had to call a plumber, it would have likely been more like $150.Yes, repairing is certainly cheaper, but sometimes age-wise you can't repair and then you're talking replacement which is a heck of a lot more likely when you're buying an older house as many first time home buyers do. There is a point at which you have to shell out several thousand for a new roof, for example. No amount of careful care and maintenance will allow you to skip putting on new shingles. Ditto when a window loses it's seal. Likewise, even the best home inspection will miss things like rotten trim work around windows or cumulative damage by previous homeowners. I hear buying a new house isn't a guarantee for smooth sailing either, but at least in my world of homeownership (~6 yrs) sometimes it feels like your playing the grown-up version of Whack-a-mole. That being said, yes, things like Sears Parts Direct for repairing appliances and a trip to the hardware store can save you quite a bit. Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted February 20, 2014 Share Posted February 20, 2014 We rented for many years because we weren't sure we were staying in the area we were in (And in one case we were right). We sold our condo in WA because we wanted to move and didn't want it weighing us down when it came time to. We rented for 3 years and then moved to Texas. We rented for 4 years in Texas. Then bought a house (about a year before my preference. But I was NOT staying in the mobile home we were renting. It was driving me crazy. And it didn't make sense to move, rent 1 year, then move again.) When renting, you might have to move (on short notice -- 1 month for us) for reasons YOU don't want to move. That happened to us. (And I was pregnant/about to have a baby at the time. She was 1 week old when we moved. So you don't get to choose your time to move even when renting) You are responsible for repairs when renting, but there is also more comfort in making big changes to the house because 1) you don't have to ask permission and 2) you know you won't be having to move away from those changes right away. Finally, another good thing came up this past year when my then-almost-2 year old got a hold of a permanent laundry marker and marked up our kitchen floors, cabinets, walls, dishwasher, oven door (both of which are luckily already black) along with a few incidental kitchen equipment. We did the best we could to clean it up but it is NOT all coming up. So we have "ruth-angelo" artwork in our kitchen until we can afford to redo it (And redoing the kitchen WAS in our plans -- long term plans). In a rental we'd HAVE to get it cleaned up right now. We are free to choose to live with it until we 1) need to move or 2) can plan to redo the kitchen. When we bought the house, it was with the definite understanding this was the house we intend to live in at least until our kids graduate high school (Our oldest started K our first year in this house) Quote Link to comment Share on other sites More sharing options...
UmmiSays Posted February 20, 2014 Author Share Posted February 20, 2014 I have a question for those that are still sharing. If you are a homeowner, don't you get money back in your tax refund because you own? Does this somewhat equal what you spend on maintenance and repairs? Quote Link to comment Share on other sites More sharing options...
marbel Posted February 20, 2014 Share Posted February 20, 2014 I have a question for those that are still sharing. If you are a homeowner, don't you get money back in your tax refund because you own? Does this somewhat equal what you spend on maintenance and repairs? In the US mortgage interest and property taxes are deductible from taxes, but that doesn't necessarily mean a tax refund. There's more that goes into it than that. Maintenance and repair costs vary so widely; I don't think anyone can plan that a tax refund will pay for everything. I was always taught that ideally a person who receives wages that are reported via W-2 should set up their withholding so they end up the year with minimal or no tax liability and minimal or no refund. It's nice to get that money back after filing taxes but it's better to have it available to use or invest all year long. Quote Link to comment Share on other sites More sharing options...
Tess in the Burbs Posted February 20, 2014 Share Posted February 20, 2014 without reading all the other replies.... We have bought three homes. We now rent. When dh wants a better job opportunity we tend to move for them. Having a home was great...we did a lot of projects, but our lifestyle wasn't and still isn't the best for that. The second home...dh got laid off right after we bought it. We were able to sell and break even. Again, we spent a lot of money in the short time we were in that house. Repairs, leaks, issues. Always an issue with a house it seems. Last house had a ton of issues. But we stayed until the job dried up and we moved away. Bank refused our short sale(had 2 buyers ready and willing) and so now, we have to rent. But honestly, we don't want to buy a home again. We want to get some land and dh wants to put up a yurt. Simple and easy enough to maintain than a home we have no idea what is behind the walls/concrete. I honestly like renting. Our heat went out last fall. Took 3 days to get fixed. I can say that we wouldn't have had the $$ ourselves if we owned. And then the water heater had to be replaced.....same thing, I don't think we could have paid for it. I wouldn't buy unless you had a nice little nest egg set aside for repairs and yearly maintenance. Like $5k-10k set aside. And you are sure you won't want to move. Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted February 20, 2014 Share Posted February 20, 2014 I have a question for those that are still sharing. If you are a homeowner, don't you get money back in your tax refund because you own? Does this somewhat equal what you spend on maintenance and repairs? The amount of money you pay in interest can be deducted from your taxes IF you have enough costs to itemize. Everyone gets a standard deduction, whether you own a house or not. It only makes sense to itemize if you have enough costs to be OVER the standard deduction amount. I have not found our itemizations yet to make a significant difference in our taxes. We just don't pay enough in interest to make a dint. Certainly I would never suggest someone buy a house for the tax deduction. Quote Link to comment Share on other sites More sharing options...
mamaraby Posted February 20, 2014 Share Posted February 20, 2014 Speaking of parts. I've found good deals on Amazon believe it or not. The dishwasher needed a new seal. I went to a local part's store. They didn't have it in stock but offered to order it. I decided to just order it myself. They quited me nearly $50 for the part. I got it for $25 on Amazon (shipping included). I haven't had luck with Amazon which bums me out because I have Prime and am really impatient. Sears Parts Direct often has slightly higher prices, but cheaper shipping. I usually start at SPD because I find their parts diagrams easy to navigate/use and then search elsewhere. I found the dishwasher gasket cheaper on Ebay with free shipping. The handle for the oven door was cheaper on SPD, but I had to look at a parts listing on another website to figure out which handle went with my black stove. YouTube also has a treasure trove of how-to videos both on how to fix appliances and how to do other simple home repairs. I use them often because dh really isn't available very often or if he is, his time frame isn't always the same as mine. I also really like the local Ace Hardware. They employ a number of...um...older gentlemen. They tend to take pitty on my slightly confused face and can usually get me pointed in the right direction. I find them more helpful than the big box employees generally speaking. I think in our case we underestimated just how much would need to be done to this house. Looks can be deceiving. We'll do the roof ourself, but it's still quite a chunk of change. We'll probably do the soffits/fascia, but am hiring out the gutters because we want seamless. I don't know that our mortgage is ncessarily cheaper than renting, but refinancing lately certainly helped. Quote Link to comment Share on other sites More sharing options...
Aelwydd Posted February 20, 2014 Share Posted February 20, 2014 You are responsible for repairs when renting Not in my experience. I can see being responsible for any damages, but maintenance and repairs? No. We have rented several properties. We have had everything from roof leaks, to broken pipes and flooding, to central ac units, to subflooring repairs by the landlords. Just 2 weeks ago, I noticed that one side of our apartment was cold and the other side too warm. We called maintenance and they were there within a few hours to fix it. And even minor things like changing out the batteries in the thermostat and smoke detectors, have been done for us. I guess there are variable experiences but IME repairs were never done by us. Landlords generally discouraged self repair because of quality control and liability issues. Quote Link to comment Share on other sites More sharing options...
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