0
0

Why do you want to own?


 invite response                
2010 Jun 4, 11:30pm   23,963 views  62 comments

by Payoff2011   ➕follow (0)   💰tip   ignore  

Many of you here are renters who want to own. What is your reason?

Are you hoping to lower your monthly housing costs?
Do you expect to eventually own, mortgage free?
Do you want the control over your living space that renting does not offer?
Do you want the predictable housing expense that a fixed rate loan provides?
Are you looking for space or location that you can't get in a rental?

I'm just confused, the theme here is critical of home ownership, so why do you want to buy?

I personally have mixed feelings. We bought our first home many years ago. For many of those years our housing costs were below equivalent rent, as our income went up and our fixed rate loans stayed stable, or even went down with periodic refinancing into lower rates. Our long term goal was to be mortgage free in retirement. We are nearing that payoff date, well ahead of retirement. Now our maintenance costs are increasing at a pace that threatens to wipe out the benefit of being mortgage free. Renting is starting to look appealing.

#housing

Comments 1 - 40 of 62       Last »     Search these comments

1   kt1652   2010 Jun 5, 3:43am  

For me, one powerful reason to own a house is self-determination. Last weekend, I went out and bought a gazebo and drilled and bolted to the deck just the way I like, to add a nice outdoor living space that we can enjoy. No permission, no hassles.
Renters cannot do that.
My home is my castle and retreat. How much money is that worth, use your own formula. For the last 3 years I lived in a HOA community. While having security guards is good for the most part, the good-taste restrictions grated on me. You must have neighbors sign off for adding sunscreens on the windows or the color of the rocks for your front garden must comply with regulation. I had an a-hole neighbor and there is no way I am going to request them to sign off if I can add an awning!
Some people don’t want to get their hands dirty and there is nothing wrong with that. They may prefer to live in a rental where you can call someone to have a dripping faucet fixed.

2   alibeamish   2010 Jun 5, 4:23am  

yes , KT has it. If you live in a rental you can't do what you want. You have to ask permission for every little thing and they tend to say no. I looked at rental houses and they have a lawn I'd have to water and cut (this is Phoenix, lawns are not a given). Carpet in entire house. (I don't like it) I'd have to buy a washer/dryer. And maybe I couldn't stay long enough to justify this expense.
I can have a garden or dog only with their permission. For this I'd pay 1300/mo. So I'm still in apt at 1000/mo.
So, I'd prefer to live in a house , but not as a renter.

3   alibeamish   2010 Jun 5, 4:27am  

One other comment. I rent an apt and pay 1000/ mo. If I had a paid off house in this area the tax/insurance would be 300-400/mo.
Yes maintaining is expensive but 700/mo would be sufficient I think.
Or even 1000/mo.
Houses rent for 1300/mo in this area.

4   vain   2010 Jun 5, 4:51am  

kt says

For me, one powerful reason to own a house is self-determination. Last weekend, I went out and bought a gazebo and drilled and bolted to the deck just the way I like, to add a nice outdoor living space that we can enjoy. No permission, no hassles.

Renters cannot do that.

Apparently home owners cannot do it as well. Did you get a permit from the city? :)

5   kt1652   2010 Jun 5, 5:39am  

Vain says

kt says


For me, one powerful reason to own a house is self-determination. Last weekend, I went out and bought a gazebo and drilled and bolted to the deck just the way I like, to add a nice outdoor living space that we can enjoy. No permission, no hassles.
Renters cannot do that.

Apparently home owners cannot do it as well. Did you get a permit from the city? )

The :) picture is off for me, did I offend Patrick? It's killing me. What is it?

6   gameisrigged   2010 Jun 5, 5:41am  

Landlords are all scum and I do not want to have one anymore. But I'm not going to ruin myself financially to do it.

7   Michinaga   2010 Jun 5, 6:50am  

I wanted to own because I'd rather not have to throw money away paying someone else for a roof over my head.

Now I own, and my maintenance costs and property taxes are of course far less than rent would be. Some day I'll rent it out and make money to pay for my next home, and even if it's worth less when I sell, the loss will be more than made up for by all thse months when I didn't have to pay rent.

8   Fireballsocal   2010 Jun 5, 7:09am  

I want my own garage to change my own oil in. I want to be able to wash my own truck in my own yard next to my own barbeque that no one can tell me I can't have. I want to turn up the stereo or watch a movie without disturbing my neighbors. I want an avacado tree. I want to mow my own lawn (This one scares me. What am I thinking?). My apartment costs $825 a month and my storage unit costs $150. I am in the process of buying a short sale and if it goes through, my mortgage, PMI, and insurance will be just under $1000. I like that I will be putting my money towards my equity instead of someone elses. I even look forward to maintaining and fixing my own house. I like that.

I have enjoyed the benefits of renting for the last 13 years and am now ready to enjoy the benefits of owning. There is no time that its right for everyone to buy or everyone torent. That is an individual choice.

9   Â¥   2010 Jun 5, 7:24am  

This is a good question.

Historically, real estate has been a very decent inflation hedge. My mom has her house paid off now. She paid it off at $400/mo + escrows for 25 years. If she had been renting and saving the difference, she might have $150,000 or so in index funds instead.

But getting the mortgage was risk-free and conservative and worked well enough, especially thanks to Prop 13. Her house is paid off now and worth more than what she'd have if she'd invested most like. It throws off the free rent benefit of $800/mo or so (property tax is $100/mo).

so why do you want to buy?

The 1970s made buyers in the 1960s set.
The 1980s made buyers in the 1970s set.
The (late) 1990s made most buyers in the 80s set.
The 2000s made everyone set (until it all crashed).

My rent is $20K/yr, the house I want to buy is $400K. As long as the house is declining in value by my rent, I'm happy renting.

I think continued deflation is in the cards -- we're going to have to do a lot of radical stuff to see any actual wage inflation or higher rents & property values this decade.

Higher taxes, higher energy costs, reduced government salaries and employment, immense structural unemployment depressing wages in all areas -- something's gotta give, and real estate is the prime candidate.

Real Estate always prices itself at what the market can bear . . . going up, or going down.

10   Done!   2010 Jun 5, 7:29am  

To be my own man...

See how much am I willing to pay.

Either way I'm being my own man. I've waited this long for the REA to fuck it up, and they have about exhausted all of their means to intervene and effect the price.
Thanks to their disastrous effort, I am poised to catch the Over correction.

Housing has pretty much gotten to the fair value(for those sellers being honest with them selves anyway). But thanks to the years of fudge numbers and cooked books, the market is confused and is spiraling out of control.

I'm keen to warm my hands by the fire from the implosion it will make.

11   B.A.C.A.H.   2010 Jun 5, 1:18pm  

I am renting money to pay for my residence.

Are you hoping to lower your monthly housing costs? I was but managed to get a good refi (had to pay down the balance a little bit) in March '09.

Do you expect to eventually own, mortgage free?
Not sure on that one. RIght now renting the money is a better deal.

Do you want the control over your living space that renting does not offer?
Tell that to the termites I found out this morning I'll have to fork over a couple of grand to get rid of.

Do you want the predictable housing expense that a fixed rate loan provides?
It's not as predictable as one may think. Please read my last comment.

Are you looking for space or location that you can’t get in a rental?
I am stuck here. I wanted to sell in in June of '06 and pocket the gain, so that I could rent in a better location with more space. My partner would not agree to it at the time so I am still renting (money).

I’m just confused, the theme here is critical of home ownership, so why do you want to buy?

12   elliemae   2010 Jun 5, 4:09pm  

It's damn hard to find a place that allows me to be an elliemae. I have a bunch of critters.

I also enjoy being able to do what I please - move various people in & out (mostly nieces & nephews attending college these days) - without obtaining permission. I've painted, tiled, installed cabinets, etc as I please. Can't do that in a rental.

But I bought in 2001. I put plenty down, didn't cash out phantom equity, and have lived modestly. I'm lucky enough to have equity now (judging by recent sales in my immediate area) and to keep my job during the recession. I wouldn't buy now if I didn't already own.

13   SFace   2010 Jun 5, 5:57pm  

various reasons:

* stabability for family and for my two kids. I want to make sure they will always have a permanent shelter in a sought after neigborhood as my family base and rock and give them that foundation so they can build off of for themselves. In the end, the properties are all theirs when they are ready to access it.
* Having a mortgage keeps you hungry to make more money and not settle. My mom taught me how to save, but I taught myself that earning money as a form of saving money is a lot better than just cutting spending. Responsibility is positive motivation.
* The 35%-38% interest and property tax subsidy is too good to pass up. Carrying cost net of tax deduction and rent is currently 0 after 10 years and 4.75% rate refinances.
* Having a mortgage over time opens up a new world of access to finance, cheap money, and deductable money. Increased financial flexability allowed me to purchase home #2 and #3 with ease. Home #4 is easily reachable at my discretion. We have a 200K Prime - 1.25% HELOC or 1.75% that is an absolute cash cows for us.
* A home is also a hedge/insurance. It is only part of your savings, retirement and trading assets. Like insurance policies, it doesn't always have to be jusitified in pure #'s, just the right reasons behind the purchase.

14   Bigpopper   2010 Jun 5, 8:50pm  

Keep in mind that HOA's can be highly restrictive, and you often have to have renovations and alterations approved by the HOA and the city/county.

15   Bigpopper   2010 Jun 5, 8:54pm  

I'd love to own property free and clear. Had I been a miser the past 9 years and sustained my miserly trajectory, I'd have 200,000 saved up by now, which would be enough to buy a modest condo with cash. But I was stupid. I doubt I'd be able to save that much in such a short period of time anymore. So I'll rent and save until I can find a place with a mortgage plus other costs that are equal or lower than the prevailing rents.

16   shultzie   2010 Jun 6, 12:38am  

I've never felt "at home" in a rental even when I was in the same place for over seven years. There's so much I want to do and I just don't feel "ownership" enough over a rental to do it - even if the landlord doesn't care what i do.

the problem with someone else being responsible for maintenance is just that - I am on their timetable and at their whim. Right now I have to go out and look for a laundrymat because the washing machine is broken. I knew it was coming because its so old...but my urgency is not the landlord's urgency.

17   Done!   2010 Jun 6, 2:06am  

Bigpopper says

Keep in mind that HOA’s can be highly restrictive, and you often have to have renovations and alterations approved by the HOA and the city/county.

Only a bonafide "DINK" would buy into a HOA community, who is not the type of person to have the liberty of what he does on his own property, dictated to him. That person then surely deserves every bit of Grief that HOA's give him.

As for the 95% of the happy people in living in HOA communities. They are mindless little ass trolls, that can't grasp the concept of living in America "LAND OF THE FREE". So they buy into "Dictator for hire" communities.

18   Bigpopper   2010 Jun 6, 2:37am  

the amount of "free" in freedom is finite and depends on consensus, force, and/or some other factors.

19   xenogear3   2010 Jun 6, 3:03am  

Owning a house or Buying a stock are good in theory, but you don't want overpay it.

If you bought an internet stock in 1999 or a house in 2007, you will be in nothing but pain.

20   Payoff2011   2010 Jun 6, 10:33pm  

SF ace said "* Having a mortgage over time opens up a new world of access to finance, cheap money, and deductable money...."

Excellent comment. I actually forgot about the fact that mortgage debt makes your FICO score go up and makes it easier to qualify for other loans. I suppose my FICO will go down when my mortgage is paid off.

Great comments from everybody.

As to HOA, I've never lived with one. The primary reason I hear people like a HOA community (I'm talking SFH) is the HOA keeps everybody's property values up because of the rules.

21   Payoff2011   2010 Jun 6, 10:39pm  

Oh, and we pay about 2% property tax here. Communities in the next county pay up to 3%. I know plenty of people whose property tax bill is $10K-$11K on a $300-$400K house.

22   a4adam   2010 Jun 7, 2:13am  

Been renting for 27 years. Had enough of dealing with flakey landlords who do little to maintain their property and do not honor their own contracts. We are paying $1600 month for rent (which is not bad for this area) for a 3/2 house—most in the area go for closer to $1800-$2000 a month. Housing in Davis, CA is too expensive to buy (yes a mini-bubble here), so we looked in nearby Vacaville, CA where housing prices have dropped significantly in the past couple of years.

Personally, I've always had mixed feelings about buying. My folks were real estate brokers/agents. I hated the business in general and was leery during the late 90s and early 2000s when housing prices were skyrocketing. I knew it would all come tumbling down.

So now my wife and I are in a really good position to buy. We don't see the point in waiting any longer since we are ready to get out of our current rental and do not want to move into another rental. We are not really buying the house as an investment. We don't expect to be able to turn around and sell it for a profit. If in 7 to 10 years we decide to sell due to a change in employment, then so be it.

So we have spent the past 6 months looking for a place, looking mostly at the low and middle-end market. Last week we made an offer on a 3/2 1800sq/ft on a 9200sq ft lot with a very private backyard and no neighbors looming over us. Nothing fancy, but the house has been completely remodeled so we don't have to sink our life savings into it. My wife and I both work, but now we can afford a $275k house on one salary. No kids and we want to be able to modify our yard and house without having to ask permission, etc. So far so good.

The funny (or scary) thing is, the banks are still approving loans that I consider to be too high. They approved us for a $430k loan. Technically we can afford that but it would be a stretch even on two salaries, so we set our budget to under $350k with the idea of trying to find something under $300k. I guess we're more of the downsizing types than upsizing. Bigger is not better, more maintenance costs, higher heating/cooling costs, etc.

Are you hoping to lower your monthly housing costs? No.
Do you expect to eventually own, mortgage free? Yes.
Do you want the control over your living space that renting does not offer? Yes.
Do you want the predictable housing expense that a fixed rate loan provides? No comment.
Are you looking for space or location that you can’t get in a rental? No comment.

23   TType85   2010 Jun 7, 2:50am  

Are you hoping to lower your monthly housing costs? No.
Do you expect to eventually own, mortgage free? Yes.
Do you want the control over your living space that renting does not offer? Yes.
Do you want the predictable housing expense that a fixed rate loan provides? It's nice, but not a deciding factor.
Are you looking for space or location that you can’t get in a rental? Yes.

Fireballsocal and elliemae summed it up pretty well for me. There are just things you can't do in a rental/apartment/condo that you can in your own home.

I do have to do more work. If something breaks I have to fix it (or have it fixed). To me that is actually a nice feeling. Most landlords will put the cheapest thing in to get by, I can choose what goes in. I hate the stove that is in our place but it works. It is electric (eww). Since this is *my* place I am having a gas line run and putting in a gas stove. Try to do that in a rental :P

24   caplet   2010 Jun 7, 2:15pm  

I'll echo several people here. Self determination, but also an irrational sense of having a stake in a place. I've always rented and have gotten very attached to some homes, one in particular. But I'm glad that I never bought when everyone was telling me to, because now I'd be in a big hole. Also, I have no intention of buying any time soon. I may be sentimental, but the rent to own ratio is just too high.

25   liatris   2010 Jun 7, 4:50pm  

for the same reasons others have stated:

i want to customize it
i want to have more freedoms than those imposed by LLs
i like to fix things and upgrade things
i want to be able to paint a wall any color i wish without being told i have to repaint it beige before i move
if i want nice carpet i can have it and not be told that my carpet is being depreciated over 7 years and it has only been in use for 5 years

and the list goes on

26   sasebo__9600   2010 Jun 7, 4:51pm  

Renting would be boring.I like to do stuff around the house.It's nice tohave your own property where you can plant a garden ,plant trees and watch them grow through the years.I like to get my hyands dirty and do landscaping.I would turn into a couchy potatoe if iwas renter.

27   dellavez   2010 Jun 7, 5:25pm  

"Why do you want to own?" well I think my stated reasons have changed overtime, but my methods and results have been some what the same for me... even though I did not really plan it that way. I bought a tri-plex for 60k when I was 20 and a 295,000 custom ranch home when I was 38 and both were foreclosed on! Today I want to own for the same reasons, and that is to control an appreciating asset and leverage the hell out of it! so I can pay for all the things people keep tell me I have to have?! ... but I am also looking for a place to squat?!... :-P

28   lb   2010 Jun 7, 6:44pm  

I've been a renter my entire adult life and have, up until 2008, felt that I'd been consistently just behind the most affordable time for me to buy a house. When the median price in my area (SF Bay) was $100,000, I would've been able to afford $60,000; when it was $250,000 I could've afforded $150,000, and so on. I also felt like I was lacking some essential socialization gene: I had no debt, I drove an older vehicle and my idea of a nice vacation was camping. All my friends were working on their third and fourth houses when the bubble burst--and it was like the curtain opened on the Wizard of Oz. Suddenly their new Lexises were being repossessed, they were in danger of losing their house or were actually in foreclosure, their kids had to go to community colleges, they stopped being able to sleep at night. I was amazed and, frankly, shocked that the apparent vision of everyone else's success was just an illusion, and that my chosen way of life was not--at least in my own eyes anymore--unworthy of respect. It's been an incredibly enlightening experience.

In a perfect world, yes, I would like to own a house. But it would have to be something that did not add crushing anxiety to my life, and frankly, looking around me, I don't see that that's true for anyone I know who's younger than about 60, 65. My long-term plan is to buy a couple acres for cash and then live on the land in a temporary shelter while I put up a modest-sized energy-efficient structure. I think I'm within about two years of that.

Renting has made me much more flexible, compelled me to become a more sociable and outgoing person and required me to be more considerate of others than I would be otherwise, I think. These are all good character traits that I value. It also has made me ultra responsible about paying my way and has discouraged me from accumulating unnecessary junk. Plus, I can move whenever the hell I want to. As a result, I've lived all over western Europe and most of the western U.S. No way would I have done any of that moving around if I'd've owned a house.

Thanks for all the great links, Patrick.

29   badkittym   2010 Jun 7, 10:58pm  

I bought because with 20% down (and getting a GREAT price), my mortgage including property tax and insurance is 1/3 what I pay for a comparable rental property. Also, I bought because I want to own; not as a so-called investment or because I expect to see a profit at any point. I have no intention of selling. After searching like it was a full-time job for the past 2 years, I finally located exactly what I wanted, where I wanted and easily within my budget, even if I lost my job. It made sense for me to buy.

30   danix   2010 Jun 8, 12:18am  

I echo many of the reasons listed, namely, that you want to be able to do what you want because it's yours.
I've saved a lot of money over the last 3 years by renting (that's worth its own topic frankly), but one reason I haven't seen mentioned yet is that renting is not a guaranteed state. If your landlord files bankruptcy, or does a short sale, or turns his keys back in, you have potentially a maximum of 90 days to find a new place to live.

We're currently renting month to month after having to vacate our former rental, and while I like the flexibility, I know I'm overspending for a place I don't enjoy. At the same time, the money I've had in the bank for the last 4 years waiting for me to buy a house at any possible moment, is not earning enough interest.

So, I'm still looking. When I go to open houses the realtors ask how long I've been looking and I answer with a smile "over 2 years now."

31   commonsense   2010 Jun 8, 12:22am  

The soapy ideas about owning a house make me want to vomit. Since 1975 owning a house has been more often that naught a fool's game, unless one bought and held tight but that was not the case it was buy and sell for most and it led to nothing, because very few bought then sold at profit and if they did they 99.9% of the time kept dumbing the profit into a higher priced place. The other thing that makes my blood boil is this word 'value' the song "My property VALUE ..." the damn property was never really worth what they thought (or got suckered into) in the first place. It is all sick and warped and this crash that has been long overdue has proven it. We have not seen the bottom ...and aren't going to in this economic climate for some time to come. I rode out this mess by renting, and will continue to do so until I see that property has real value to the dollar ...not value in Wizard of Oz terms.

32   ska   2010 Jun 8, 12:27am  

First, we're certain we want to stay where we are. Second, we want to buy as protection against the next bout of serious inflation, i.e. we don't want to be holding cash and would prefer a bit of debt.

With regard to some of the comments, it is possible to fix a rental (harder to get a long-term lease to guarantee you'll enjoy all the benefits of those fixes). My landlady has given us free rein to do whatever and even pays for all materials. In the many years we've been renting, we've found that renting from the owners is quite pleasant and renting from agents is a pain in the ass. We'll never rent a place through an agency again. They're mostly f'd up real estate agents doing rentals on the side anyway.

33   zenophite   2010 Jun 8, 12:46am  

Owning means the only master you have is the one we can't get rid of: government.

Besides, provided you have been smart about your finances, you will have an asset that can be sold to recoup at least a portion of your overall investment in the property whereas if you pay rent all you have been doing is helping to pay someone else's mortgage.

I'm not disputing that renting makes financial sense in some cases and times but let's not throw the baby out with the bathwater in response to the housing crash. The problem is that government policy and general stupidity allowed people to take on up to greater than 100% debt when buying a home.

Most Americans are financially stupid. They aren't capable of analyzing their own situation and realizing what signing on the dotted line will mean to their future.

34   Andrew   2010 Jun 8, 1:16am  

I had a condo. After a long, arduous, expensive slog to a bachelors degree, I discovered I couldn't find an apartment with the weight of Sallie Mae. I found a slum of a condo for less than a house share (for the first year, anyway) and doubled down.

I watched my taxes move up 10 to 20% each year.

I joined the condo board. I raised the condo fee several times, including 25% in one year alone to finance the renovation of severely dilapidated parking structure.

I realized the tragedy of the commons. Before the bubble no one cared, during the bubble most cared less and after the bubble, well, something for nothing was requested by the body politic every day.

After the bubble, the building lost its FHA status and I hit the eject button. I found a VA, got his 8K and moved out.

Now I rent in a luxury building for about 150% of what I was spending before. I am happy. I took the money off the roulette wheel. I live in a very well managed apartment. I am right on the train. Private security included. I have a much larger space with modern accouterments. I mounted my TV on the wall. I painted it. I have laundry. I can leave any time.

With my winnings I paid Sallie Mae off. I owe vehicle lender 3K at 0.9 %. I still hold 20% for the next roll.

I look back at that ship of fools, and I realize that housing decisions can not be taken lightly.

One must focus very closely on need versus want, on value versus emotion. Could one get married someday? Divorced? Children? a new job? just tired?

In my own small way I won. I won't rule out debt peonage but I'll have to reflect very hard and very long if I ever do that again.

Many of the housing boosters strike me as might an ardent sports fan who, having bought a too large of a season ticket package, need to convince others of the great deal. Sure it might work out, or you might be going to a lot of inconvenient games by yourself.

35   lb   2010 Jun 8, 1:18am  

I've been a renter my entire adult life and have, up until 2008, felt that I'd been consistently just behind the most affordable time for me to buy a house. When the median price in my area (SF Bay) was $100,000, I would've been able to afford $60,000; when it was $250,000 I could've afforded $175,000. I also felt like I was lacking some essential socialization gene: I had no debt, I drove an older vehicle and my idea of a nice vacation was camping. All my friends were working on their third and fourth houses when the bubble burst--and it was like the curtain opened on the Wizard of Oz. Suddenly their new Lexises were being repossessed, they were in danger of losing their house or were actually in foreclosure, their kids had to go to community colleges, they stopped being able to sleep at night. I was amazed and, frankly, shocked that the apparent vision of everyone else's success was just an illusion, and that my chosen way of life was not--at least in my own eyes anymore--unworthy of respect. It's been an incredibly enlightening experience.

In a perfect world, yes, I would like to own a house. But it would have to be something that did not add crushing anxiety to my life, and frankly, looking around me, I don't see that that's true for anyone I know who's younger than about 60, 65. My long-term plan is to buy a couple acres for cash and then live on the land in a temporary shelter while I put up a modest-sized energy efficient structure. I think I'm within about two years of that.

Renting has made me much more flexible, compelled me to become a more sociable and outgoing person and required me to be more considerate of others than I would be otherwise, I think. These are all good character traits that I value. It also has made me ultra responsible about paying my way and has discouraged me from accumulating unnecessary junk. Plus, I can move whenever the hell I want to. As a result, I've lived all over western Europe and most of the western U.S. No way would I have done any of that moving around if I'd've owned a house.

Thanks for all the great links, Patrick.

36   m1ckey6   2010 Jun 8, 1:42am  

I don't think the theme is critical of home ownership - the aim of the site is simply to pay a reasonable price for property.

SF Ace the fact that you actively want to get into more debt because you feel that is a reason to go to work explains a lot of your bizarre comments over the years. I make a lot of money off people like you though so I shouldn't complain.

37   SFace   2010 Jun 8, 2:07am  

Mickey,

If you read my comments carefully, I get into debt mostly to increase cash flow which at this point my rent equalvalent is 0. The rest is used in 7-9% bonds, preferred shares at 2% borrowing cost. The low fixed rate of living frees up capital on other things.

If you make money off people that is fine, as I do pay for service. We work/proprietor in the service industry so I don't have the perspective that everything is overpriced except yourself.

Starbucks went from 1 stores to 30K stores or so because of borrowing/equity. If they relied on cash flow from operations alone, they still might be working on store #200 or so and not an international brand recognize today.

If your fixed cost is low and comfortable, there is no motivation to improve yourself and people tend to settle. Of course that is really a life philsopophy so to each their own. If that is bizarre, I guess it is. We are in early 30's so at this point, we like to push myself a little harder than the normal Joe Smith.

38   Spokaneman   2010 Jun 8, 2:29am  

There is more to owning a home that just a simple financial transaction. For many, owning thier home provides not only shelter, but sense of well being. But for a home to be that, the homeowner must buy and live within his means. I am sure that being over-extended on a mortgage would be a ground hog day nightmare.

Many people derive a great deal of satisfaction in maintaining and improving thier home. Drive down any street in suburbia, and you can spot those homes, not just in the upscale neighborhood, but in modest neighborhoods as well.

A home can also be a good financial hedge. Buy a home, pay it off in 10 or 15 years (yes that is possible), and a home can provide a substantial amount of financial stability in your later years. I've had my house paid for for about 10 years now. And as I approach retirement, I figure I would need to have an additional $500K in retirement investments to service a rent payment at todays interest rates.

Frankly, I cannot imagine being a renter.

39   Wanderer   2010 Jun 8, 3:11am  

I almost bought in Oct 2007 because I wanted to feel accomplished, I wanted to say I'd bought a house. It seemed like what everybody was doing and I thought prices were sure to rebound in, like, 5 seconds. We backed out one day before closing when I found this site. So we're still renters and quite happy in the house we have. If we were to jump back in the market, it would only be if it made immediate economical sense. I know some people whose mortgage is way less than rents and I'd like to be one of those people someday.

Also, we'd like to build a home sound studio and that's a fat waste of money in a rental.

40   westladog   2010 Jun 8, 3:38am  

First time home owner. A home on 20 acres in the heart of Sacramento. Now, I can build my motocross track, plant some trees. It can't get any better than this.....for $365k 15 years loan.....This is my American Dream. Wife and I work. We're not financially extended. We do not live beyond our means. Credit cards are all paid off. Putting money in 401k every paycheck and participate in employee purchase plan. For us, it was the best time to buy.
We just bought a quad-plex as a rental property. Half the tenants pay the mortgage.

Good time to buy? I think so....
All of my "friends" told me that I was stupid not to get into the housing market between 2003-2008....."...it will never go down"....yeah right......

Go Bruins! Go Lakers!

Comments 1 - 40 of 62       Last »     Search these comments

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions