Owning a home or a house

[Questioner]

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.

 

[Ringel05]

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.

I would recommend you do what is best for you. Not knowing your circumstances advising you to buy or not buy would be stupid, taking any advice from people who don't know your circumstances would be idiotic.

 

[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

 

[iamwhatiseem]

A financial adviser who has all of your own particular information available is the only person you should listen to in this regard.
If you are asking a general question about young/unmarried couple buying vs. renting the answer to that would overwhelmingly be rent.
A young person moves from job to job numerous times before settling on one they stick with. Owning a home is more expensive in the short run, only after the first couple years does owning get cheaper.

 

[Dick Foster]

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. Instead it helps to increase someone else's net worth. Then too there's your credit score to think about.
If you're young and have some time, sweat equity can bring many more returns than pissing your time away sitting on your ass or goofing off.

 

[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.

 

[Crepitus]

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.

Pluses and minuses to home ownership.

Long term investment is good because real estate almost always appreciates.

The ability to do what you want with it is nice as well. I recently remodeled my bathroom and an preparing to remove a couple of walls in the living/dining room area.

But upkeep is your responsibility, and can get expensive.

 

[iamwhatiseem]

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.

 

[rightwinger]

A financial adviser who has all of your own particular information available is the only person you should listen to in this regard.
If you are asking a general question about young/unmarried couple buying vs. renting the answer to that would overwhelmingly be rent.
A young person moves from job to job numerous times before settling on one they stick with. Owning a home is more expensive in the short run, only after the first couple years does owning get cheaper.

Personally, I find the advice of internet posters to be more dependable

 

[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

 

[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.

 

[william the wie]

When it comes to Real estate three things are necessary to know:

land appreciates buildings do not.

You must make sure you know the typical annual costs due to weather

The length of time you expect to live in your next house.

 

[HereWeGoAgain]

The wife and I stopped renting when we were 23.
Paid off our first house in 12 years and sold it for 35k more than we paid for it.
That gave us a hefty 160k to put down on our next house and with savings we paid for it in full for 360k.
Haven't had a house payment for over 20 years.

 

[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

 

[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

Again not true.
And BTW, I own and have owned, except for one year since I was 24 years old.

Scenario 1 - Person needs a place to live, but their relationship ends after 2 years.

RENT. $1200/mo for 24 months = $28,800. That money is gone.

PURCHASED HOME
Closing costs - $5000
Monthly taxes and insurance for 2 years - $15,600
Mortgage payment $1200/mo for 2 years - $28,800
Repair costs - $$, Improvements - $$
Selling the home after only 2 years of ownership it is unlikely they will sell much more than what they paid or worse - at a loss. And any money left over is split.

 

[HereWeGoAgain]

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

Again not true.
And BTW, I own and have owned, except for one year since I was 24 years old.

Scenario 1 - Person needs a place to live, but their relationship ends after 2 years.

RENT. $1200/mo for 24 months = $28,800. That money is gone.

PURCHASED HOME
Closing costs - $5000
Monthly taxes and insurance for 2 years - $15,600
Mortgage payment $1200/mo for 2 years - $28,800
Repair costs - $$, Improvements - $$
Selling the home after only 2 years of ownership it is unlikely they will sell much more than what they paid or worse - at a loss. And any money left over is split.

Who makes a decision to buy a house on the chance of divorce?

 

[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.

 

[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

Again not true.
And BTW, I own and have owned, except for one year since I was 24 years old.

Scenario 1 - Person needs a place to live, but their relationship ends after 2 years.

RENT. $1200/mo for 24 months = $28,800. That money is gone.

PURCHASED HOME
Closing costs - $5000
Monthly taxes and insurance for 2 years - $15,600
Mortgage payment $1200/mo for 2 years - $28,800
Repair costs - $$, Improvements - $$
Selling the home after only 2 years of ownership it is unlikely they will sell much more than what they paid or worse - at a loss. And any money left over is split.

Who makes a decision to buy a house on the chance of divorce?

Wasn't suggesting that. I just presented a scenario that shows buying is considerably more expensive than renting in the short run.
Of course buying is exponentially better than renting.... long term.

 

[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

Again not true.
And BTW, I own and have owned, except for one year since I was 24 years old.

Scenario 1 - Person needs a place to live, but their relationship ends after 2 years.

RENT. $1200/mo for 24 months = $28,800. That money is gone.

PURCHASED HOME
Closing costs - $5000
Monthly taxes and insurance for 2 years - $15,600
Mortgage payment $1200/mo for 2 years - $28,800
Repair costs - $$, Improvements - $$
Selling the home after only 2 years of ownership it is unlikely they will sell much more than what they paid or worse - at a loss. And any money left over is split.

Like I said earlier, you need to be economically and geographically stable and stay at least five years

 

[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