Reasons Why I Never Want To Own A House Again

[Mindful]

1. As investments go, it’s not always a great deal. While it’s true that some homes do appreciate, so do many other assets. If you bought a house for, say, $200,000 thirty years ago, it would be worth $468,375.09 today. While that gain feels impressive, that appreciation is based solely on inflation – which means that, in theory, the same appreciation would have happened with any asset. While we did “make” money on the sale of our house, I suspect we would have had a similar increase had we invested that money in the market or in our business.
2. The mortgage interest deduction doesn’t make up for the fact that you’re still paying a lot of interest. While I understand that it’s possible to buy a house without a mortgage, the large percentage of homeowners (more than 70%) take out a loan. With average mortgage rates at 4.3% (as of this morning), you’ll actually pay $356,307.44 for a $200,000 home: $156,307.44 in interest alone. Averaged over 30 years, that works out to a little over $5,000 per year (even though in practice you pay the most interest at the beginning). Assuming you’re in a 25% bracket – and you itemize – that works out to a tax savings of just over $1,300 per year. But the word “savings” is somewhat of a misnomer because you’re still out of pocket more than you get back in tax savings: in our example, you would “save” less than $40,000 while paying out more than $150,000 in interest.

Compared to what? Living in your parents basement?

You have to live somewhere. So if you buy a 2500 square foot house or rent one....you still have to pay
Over the long run, you will have something to show for your home ownership vs renting

How many people, when they are old, find it to be a millstone round their necks? And can't get rid of the damn thing.

I bought a house, because I had an emotional connection to it and wanted to live in it. There was no other way. Broke my heart to leave.

 

[Mindful]

But we don't own it. The bank owns it.

Only if you owe them money.

Even if you have paid for it, do you really own it?

The government could make a compulsory purchase order. Times could change, you could fall on hard times, go bankrupt.

 

[iamwhatiseem]

Times could change, you could fall on hard times, go bankrupt.

Your kidding? Right?
If you have no mortgage and come into hard times...you think you are better off having to pay rent???
Worse case scenario, you could get a 2nd mortgage at almost zero interest for say $20k or so and live on that until your situation improves.
Even if you still have a loan and come into hard times, virtually all banks will allow you to skip a payment or two and then even alloow you to pay interest only for quite awhile.

 

[rightwinger]

A mortgage is typically 20 or 30 years while, at any given time, the current administration has only four (or possibly eight). I can’t stress this enough. The home mortgage interest deduction has been around for what seems like forever. Does that mean it that you can count on it to be around in 10, 20 or 30 years? Don’t be so sure. The deduction has become increasingly vulnerable: it has been a talking point in practically every administration from Bush to Obama,

Yes, a mortgage is typically 20-30 years. And during that time, your mortgage payment will remain stable. Your rent will not

With interest rates below 5% that mortgage interest deduction is not as important as it used to be. But politically, any politician knows that mortgage interest rate deduction is a third rail. It would upset the real estate market and enrage a hundred million voters

 

[Anathema]

There is not enough money on this planet to get me to allow you to GIVE me a home/property. I rent. I always have and I always will. Month-to-month lease with the landlord so either of us can get out if we need to. He does all the maintenance; pays all the taxes, fees, water/sewer, etc..... (yes, I understand this stuff comes out of the rent). If I take care of the place, I get my deposit back when I leave. If not, I don't. Simple, easy, and when I eventually die, there's no property to have to worry about getting rid of. It's a Win-Win situation.

 

[Mindful]

Times could change, you could fall on hard times, go bankrupt.

Your kidding? Right?
If you have no mortgage and come into hard times...you think you are better off having to pay rent???
Worse case scenario, you could get a 2nd mortgage at almost zero interest for say $20k or so and live on that until your situation improves.
Even if you still have a loan and come into hard times, virtually all banks will allow you to skip a payment or two and then even alloow you to pay interest only for quite awhile.

I don't look at it as being better off. If you are into hard times, you don't think that way. In some cases, the government has to house you, or you live on the streets.

I was posing the question: does one really own anything?

 

[Mindful]

There is not enough money on this planet to get me to allow you to GIVE me a home/property. I rent. I always have and I always will. Month-to-month lease with the landlord so either of us can get out if we need to. He does all the maintenance; pays all the taxes, fees, water/sewer, etc..... (yes, I understand this stuff comes out of the rent). If I take care of the place, I get my deposit back when I leave. If not, I don't. Simple, easy, and when I eventually die, there's no property to have to worry about getting rid of. It's a Win-Win situation.

It's the maintenance that gets me. A new roof? And don't mention the plumbing.

As the guy who wrote the article said, he's not against buying,
He likes renting more.

 

[Anathema]

It's the maintenance that gets me. A new roof? And don't mention the plumbing.

As the guy who wrote the article said, he's not against buying, He likes renting more.

As I said, there's not enough money out there for me to allow you to GIVE me a piece of property. Too much maintenance, taxes, etc... I'm more than happy to let someone else deal with that crap.

 

[R.D.]

There is not enough money on this planet to get me to allow you to GIVE me a home/property. I rent. I always have and I always will. Month-to-month lease with the landlord so either of us can get out if we need to. He does all the maintenance; pays all the taxes, fees, water/sewer, etc..... (yes, I understand this stuff comes out of the rent). If I take care of the place, I get my deposit back when I leave. If not, I don't. Simple, easy, and when I eventually die, there's no property to have to worry about getting rid of. It's a Win-Win situation.

It's the maintenance that gets me. A new roof? And don't mention the plumbing.

As the guy who wrote the article said, he's not against buying,
He likes renting more.

A woman wrote the article, that's why some of us asked if it was you.

Rental vs buying is just a personal choice. I found the article to be Ill informed and silly. For every rental there is an owner who disagrees

 

[rightwinger]

There is not enough money on this planet to get me to allow you to GIVE me a home/property. I rent. I always have and I always will. Month-to-month lease with the landlord so either of us can get out if we need to. He does all the maintenance; pays all the taxes, fees, water/sewer, etc..... (yes, I understand this stuff comes out of the rent). If I take care of the place, I get my deposit back when I leave. If not, I don't. Simple, easy, and when I eventually die, there's no property to have to worry about getting rid of. It's a Win-Win situation.

It's the maintenance that gets me. A new roof? And don't mention the plumbing.

As the guy who wrote the article said, he's not against buying,
He likes renting more.

Yes, maintenance is part of home ownership.

But you are still paying for maintenance when you rent. New roof? Your rent will be adjusted to pay for that. Taxes, fees, water/sewer....when those go up, so will your rent

 

[Anathema]

Yes, maintenance is part of home ownership.

But you are still paying for maintenance when you rent. New roof? Your rent will be adjusted to pay for that. Taxes, fees, water/sewer....when those go up, so will your rent

Yes, and if it goes up too much I give my 30 days notice and move. It's that simple. There's always someone out there willing to rent a place at what I'm willing to pay. Might not be the Ritz-Carlton but it keeps a roof over our heads.

I've also found that as a soon to be middle-aged couple with no kids, one small dog, and a history of paying on time and not being party animals, most landlords prefer us over a lot of the other options in the area (mostly college kids). That's a big help when it comes to dealing with potential rent increases and other issues like that.

 

[G.T.]

Buying my house was one of the best decisions ive ever made.

 

[mudwhistle]

Paying rent is like putting a match to your money. I'm the only one in my family that owns their own home. The rest have nothing. Buying a home teaches you about finance and taking care of your property. Renting teaches you nothing ... and in some cities renting means ever increasing rent from greedy owners getting rich off of my money.

 

[gipper]

Home ownership is promoted by the banksters and the government so that Americans can be indebted to them. Americans are told BS that the American dream is owning a home...with lots of debt.

It is seldom a good investment. I have owned, managed, and sold many rental properties. Sometimes I made a nice profit when I sold, but after calculating all the costs of ownership, ie...mortgage interest, taxes, insurance, utilities, repairs, legal costs, other fees, and do not forget inflation...and factoring in tax deductions due to ownership, the profit is usually small and many times losses are incurred.

In retrospect, I should have invested in the stock market.

 

[mudwhistle]

Home ownership is promoted by the banksters and the government so that Americans can be indebted to them. Americans are told BS that the American dream is owning a home...with lots of debt.

It is seldom a good investment. I have owned, managed, and sold many rental properties. Sometimes I made a nice profit when I sold, but after calculating all the costs of ownership, ie...mortgage interest, taxes, insurance, utilities, repairs, legal costs, other fees, and do not forget inflation...and factoring in tax deductions due to ownership, the profit is usually small and many times losses are incurred.

In retrospect, I should have invested in the stock market.

Owning rental properties is a mixed bag. It's an expense but also a tax deduction. The best rental property to own is business property. No headaches from renters late on their rent ... trashing the property because they hate rich owners. Just a monthly check especially if the property is paid off. Buying homes is usually a long-term investment. Paying for a property and turning it over only works if you pay cash. Once you reach a certain age buying makes no sense. Buy when you're fairly young.

 

[G.T.]

Home ownership is promoted by the banksters and the government so that Americans can be indebted to them. Americans are told BS that the American dream is owning a home...with lots of debt.

It is seldom a good investment. I have owned, managed, and sold many rental properties. Sometimes I made a nice profit when I sold, but after calculating all the costs of ownership, ie...mortgage interest, taxes, insurance, utilities, repairs, legal costs, other fees, and do not forget inflation...and factoring in tax deductions due to ownership, the profit is usually small and many times losses are incurred.

In retrospect, I should have invested in the stock market.

It sounds like you didnt buy the right place man.

Utilities can be paid by the renter.
Rent based on the mortgage and taxes.

If rent covers those things, even if $0 is left over, the mortgage is being paid down and if you bought a place with good bones and maintained, its like a free savings account. When you sell, the equity as paid by the renters is profit.

The legal costs is just knowing ppl.

 

[007]

(Hypothetically): So you're 60 years old and you've lived on your own since you were 20. Would you rather have absolutely nothing to show for your 40 years of monthly living expenses, as in paying rent, or would you rather have a home bought and paid for?

Hey, it's up to the person for sure. But buying a home is about the best investment anyone can make, on average.

I bought my third home just a couple years ago. I put a third down and already have it over half paid off. I have made upgrades to the property and know it adds up to at least another $7500 in equity. I know of no other way to invest money and get that kind of a return.

Renting is akin to simply flushing your money down the toilet. Thousands and thousands of dollars, just vanished. I can't see how anyone can argue that flushing money down the toilet is somehow a better idea than investing it, and a home is an investment.

 

[iamwhatiseem]

To buy or to rent is one debate that will go on forever.
It all depends on your lifestyle/work history and how you spend your excess income.
As an investment, there is very little other investment types where you can dramatically increase your wealth at a very fast pace. Flipping houses, for those intelligent enough and skilled enough, is an outstanding way to make a helluva lot of cash. In my 30's I flipped 9 houses. That was 15-20 years ago and I am still reaping the benefits of doing so. I paid cash for re-roofing/rewiring/new siding and windows for my own house. Built a 6 ft. vinyl fence that cost $8000, a $35k kitchen reno as well as renovating both bathrooms. All paid for by investment returns. As well as about a third of the money I have in investment/retirement accounts to this day is from that money.
Just like anything else, buying something at a lower cost and selling it for a higher cost - always - always makes sense.