What are the benefit's of home ownership.

[airram479]

I have been renting almost 10 years. Credit is still on the "not so good side" but improving. I need every home owner one this site to share there thought's on owning,these so-called"tax write off's",the whole deal. My ass need's to get motivated.

 

[Killerkanadia]

Castle Law

 

[HereToStudy]

You are not pissing away your money with a house. A house is an asset, and contributes towards your overall financial status. When you are renting you are spending money that could have contributed to this wealth, however it is actually just going to your landlord's.

Im not a "I own a home, renters are idiots type either." I will be renting again in June. I just understand that for those that can afford it, it is the smarter choice.

 

[Flaw]

You are not pissing away your money with a house.

If you have a high mortgage rate that you can't really afford just to have your "dream" house you are. I don't see myself ever buying. Here's why. Anything can happen. Especially in these times. You lose your job, that mortgage is still there. You rent and you pay whatever you have left and you can get into something cheaper or move in with someone else depending on your circumstance. Also who knows what the market brings as far as selling. Will you be guaranteed to get your money back if you had to sell? What if for whatever reason you need to leave your area and you become stuck? To me that's a lot of stress. Stress I don't need. I'd rather rent. Too many of my friends have lost jobs and have extended their mortgages or have had to work extra hours just to get by.

 

[HereToStudy]

If you have a high mortgage rate that you can't really afford just to have your "dream" house you are. I don't see myself ever buying. Here's why. Anything can happen. Especially in these times. You lose your job, that mortgage is still there. You rent and you pay whatever you have left and you can get into something cheaper or move in with someone else depending on your circumstance. Also who knows what the market brings as far as selling. Will you be guaranteed to get your money back if you had to sell? What if for whatever reason you need to leave your area and you become stuck? To me that's a lot of stress. Stress I don't need. I'd rather rent. Too many of my friends have lost jobs and have extended their mortgages or have had to work extra hours just to get by.

This is assuming something goes wrong. I would not recommend buying to anyone who does not have a near-guaranteed income (I say near because there is no guaranteed income) and can fully afford it. In that situation, renting does not make sense. But it comes down to financial needs/wants. Under your argument there is no reason to ever invest in anything, because 98% of investments come with some level of risk.

 

[DAdams91982]

This is assuming something goes wrong. I would not recommend buying to anyone who does not have a near-guaranteed income (I say near because there is no guaranteed income) and can fully afford it. In that situation, renting does not make sense. But it comes down to financial needs/wants. Under your argument there is no reason to ever invest in anything, because 98% of investments come with some level of risk.

BINGO.

Renting has it place... coming from many years moving around in the military. But it you have the means to afford buying a house, there is no better way to set your financial security in motion. A) you will be paying to live somewhere anyway. B) Equity in a home is sure financial security. Not to mention the thrill of knowing something is yours, and the ability to change it to fit yourself.

 

[Dizmal]

You are not pissing away your money with a house. A house is an asset, and contributes towards your overall financial status. When you are renting you are spending money that could have contributed to this wealth, however it is actually just going to your landlord's.

Im not a "I own a home, renters are idiots type either." I will be renting again in June. I just understand that for those that can afford it, it is the smarter choice.

Actually, you ARE pretty much are pissing money away. Especially in this market.

Unless you're staying long term. You won't gain much of anything in appreciation.

If you're planning on selling withing 5 years. Chances are you won't make back what you have paid in on interest.


Sure, by owning a house you *could* use it as an ATM. But chances are, especially with todays economy. You aren't going to make up for all the initial interest you're paying on the loan. Simply because a fraction of what you pay actually goes to the principal untill after you've been paying for quite some time, ie, YEARS.

You're either paying the bank or the rental property. But make no mistake you aren't paying money 100% to yourself every month with a house.



If you aren't planning on living there long term(5+ years, prefereably 10), I'd just keep renting. Much less of a hastle if you need to move because of a job/woman.

 

[DAdams91982]

Oh, and one more thing... a Mortgage is tax deductible and in the end ends up being priced well within renting range. I have never taken more than a 15 year mortgage, and there you have instant equity within a year. If you do not plan to stay more than 4ish years, it may not be for you... but right now home prices are rock bottom and will not get cheaper, and appreciation will eventually hit, especially when inflation takes off again.

 

[Dizmal]

Here's an example of what could happen:

You have a mortgage for $180k @ 6.25% 30 year fixed. Monthly payment is $1400

2 years later you want to sell.

Well, in 2 years you have brought the principle down to $175k.

Say you get lucky and sell for $185k.

Well, subtract $3-5k for closing and you walk away with $5-7k in your pocket.

Wow, you made $5-7k right?! Wrong... You paid in $33,6k in payments that time. The principle went down by $5k.

So you basically just paid $28,6k in interest. $28,6k divided by 2 years divided by 12 months = $1191.

You paid $1191 a month to the bank to "buy" "your" house for those 2 years.


That's with a pretty good situation in these times. Sure, you won't have $5-7k when you move out of an apartment after 2 years. But you're not gauranteed to have that when you sell your house either. Plus you're not tied to it and credit won't be as ****ed if you have to miss rent as apposed to defaulting on a loan. You can move easier if needed for job locations, etc, etc.

*math may not be exact* but based on my own experience

 

[hardknock]

Actually, you ARE pretty much are pissing money away. Especially in this market.

Unless you're staying long term. You won't gain much of anything in appreciation.

If you're planning on selling withing 5 years. Chances are you won't make back what you have paid in on interest.


Sure, by owning a house you *could* use it as an ATM. But chances are, especially with todays economy. You aren't going to make up for all the initial interest you're paying on the loan. Simply because a fraction of what you pay actually goes to the principal untill after you've been paying for quite some time, ie, YEARS.

You're either paying the bank or the rental property. But make no mistake you aren't paying money 100% to yourself every month with a house.



If you aren't planning on living there long term(5+ years, prefereably 10), I'd just keep renting. Much less of a hastle if you need to move because of a job/woman.

So, you would rather rent for 30 years, pay 1100 bucks a month (in a half decent place) and waste nearly half a million bucks than to buy a house worth 150-200,000? Not really seeing the logic behind that unless you are just in the military or you never have the ability to afford it at all.

You have points in that it is easier to leave if you need to but, if you are basically settled, then buy, if not then rent.

Shiat, you aren't paying money to yourself .001%, point, blank, period, renting...

 

[HereToStudy]

Here's an example of what could happen:

You have a mortgage for $180k @ 6.25% 30 year fixed. Monthly payment is $1400

3 years later you want to sell.

Well, in 3 years you have brought the principle down to $175k.

Say you get lucky and sell for $185k.

Well, subtract $3-5k for closing and you walk away with $5-7k in your pocket.

Wow, you made $5-7k right?! Wrong... You paid in $50k in payments that time. The principle went down by $5k.

So you basically just paid $45k in interest. $45k divided by 3 years divided by 12 months = $1250.

You paid $1250 a month to the bank to "buy" "your" house for those 3 years.


That's with a pretty good situation in these times. Sure, you won't have $5-7k when you move out of an apartment after 3 years. But you're not gauranteed to have that when you sell your house either. Plus you're not tied to it and credit won't be as ****ed if you have to miss rent as apposed to defaulting on a loan. You can move if needed for job locations, etc, etc.

Well first off, I have never been in a house for 3 years. My mother is on her second house since my birth, so easily 10+ years on each house. My father has been in 3, and it would have been 2 if it wasnt for the divorce. I didn't recommend someone to buy if they plan to move in 3 years.

Secondly, please point me to a financial expert who recommends renting over owning. I was previously in financial sales and can tell you no one would say this.

The opposition to owning present in this thread:
1. There is risk - I stated that risk is with any investment.
2. You have to pay interest - Its a loan. Any loan will have interest. It is a long term investment and in 10 years of renting you are left with NOTHING. With 10 years in a home you are left with property value, even if you paid alot into interest, you are getting some money back.
3. Bad idea for someone looking to move often - I wouldn't recommend it either.
4. No one mentioned that homes CAN be purchased in full. Many people have done it.

 

[Dizmal]

So, you would rather rent for 30 years, pay 1100 bucks a month (in a half decent place) and waste nearly half a million bucks than to buy a house worth 150-200,000? Not really seeing the logic behind that unless you are just in the military or you never have the ability to afford it at all.

You have points in that it is easier to leave if you need to but, if you are basically settled, then buy, if not then rent.

Shiat, you aren't paying money to yourself .001%, point, blank, period, renting...

Read again... I specifially stated:

Actually, you ARE pretty much are pissing money away. Especially in this market.

Unless you're staying long term. You won't gain much of anything in appreciation.

If you're planning on selling withing 5 years. Chances are you won't make back what you have paid in on interest.


Sure, by owning a house you *could* use it as an ATM. But chances are, especially with todays economy. You aren't going to make up for all the initial interest you're paying on the loan. Simply because a fraction of what you pay actually goes to the principal untill after you've been paying for quite some time, ie, YEARS.

You're either paying the bank or the rental property. But make no mistake you aren't paying money 100% to yourself every month with a house.



If you aren't planning on living there long term(5+ years, prefereably 10), I'd just keep renting. Much less of a hastle if you need to move because of a job/woman.

 

[hardknock]

Read again... I specifially stated:

Yeah, I read what you wrote. I still wanted to type what I typed, no problem correct?

 

[Dizmal]

Well first off, I have never been in a house for 3 years. My mother is on her second house since my birth, so easily 10+ years on each house. My father has been in 3, and it would have been 2 if it wasnt for the divorce. I didn't recommend someone to buy if they plan to move in 3 years.

Secondly, please point me to a financial expert who recommends renting over owning. I was previously in financial sales and can tell you no one would say this.

The opposition to owning present in this thread:
1. There is risk - I stated that risk is with any investment.
2. You have to pay interest - Its a loan. Any loan will have interest. It is a long term investment and in 10 years of renting you are left with NOTHING. With 10 years in a home you are left with property value, even if you paid alot into interest, you are getting some money back.
3. Bad idea for someone looking to move often - I wouldn't recommend it either.
4. No one mentioned that homes CAN be purchased in full. Many people have done it.

Your parents aren't everyone. Not everyone stays in one location for large amounts of time. Not everyone is a nomad either.

Pretty sure financial advisers told people to buy more house than they could when the market was supporting it, no? Yeah, that 3 year ARM, do it! I'm sure by the time the rate adjusts you'll have your raise or can sell the house! Easy $$$... LOL!

#2, we agree. you've made my point for me, which I already stated.

#3, we agree

#4, Do you know anyone who isn't already rich with $150k+ in cash waiting to buy a house outright? I don't. But send them my way, if it's a dude I may switch sides!

 

[HereToStudy]

Your parents aren't everyone. Not everyone stays in one location for large amounts of time. Not everyone is a nomad either.

Pretty sure financial advisers told people to buy more house than they could when the market was supporting it, no? Yeah, that 3 year ARM, do it! I'm sure by the time the rate adjusts you'll have your raise or can sell the house! Easy $$$... LOL!

#2, we agree. you've made my point for me, which I already stated.

#3, we agree

#4, Do you know anyone who isn't already rich with $150k+ in cash waiting to buy a house outright? I don't. But send them my way, if it's a dude I may switch sides!

Yea we do agree on points and I wasn't looking to come out as argumentive at all.

I understand my parents are slightly different, but a home is really for someone looking to settle in IMO.
As per the 150k+ in cash comment, I have had members of the family who have purchased a home, and made smart investments as well. When it came time to move, they were able to purchase the new home for cash.
Towards the financial advisors, it depends on your advisor. Many did push people into homes without thier actual interests involved. Others, and the good ones, would have never recommended a purchase to someone who wasnt completely financially stable. A home does become and investment tool, but this is second to the fact that it is a home. Buying property strictly for portfolio matters is something that should be reserved for the top tax bracket.

 

[Dizmal]

Yea we do agree on points and I wasn't looking to come out as argumentive at all.

I understand my parents are slightly different, but a home is really for someone looking to settle in IMO.
As per the 150k+ in cash comment, I have had members of the family who have purchased a home, and made smart investments as well. When it came time to move, they were able to purchase the new home for cash.
Towards the financial advisors, it depends on your advisor. Many did push people into homes without thier actual interests involved. Others, and the good ones, would have never recommended a purchase to someone who wasnt completely financially stable. A home does become and investment tool, but this is second to the fact that it is a home. Buying property strictly for portfolio matters is something that should be reserved for the top tax bracket.

I think we agree an all points.



My worry is someone who doesn't know better and just thinks owning a home = paying yourself.

It's definitely not like that anymore and in this housing crisis you shouldn't just go out and buy because home owning is the thing to do.

Homes, especially now more than ever do to the market being stagnant is definitely not a quick and easy flip-flop to make money/buy a bigger castle. Right now, it's definitely a long term investment and needs to be thought of as such for most people.


I say this because I was one of those idiots, even though I "thought" I did my homework and got a 30 year fixed...

 

[Flaw]

This is assuming something goes wrong. I would not recommend buying to anyone who does not have a near-guaranteed income (I say near because there is no guaranteed income) and can fully afford it. In that situation, renting does not make sense. But it comes down to financial needs/wants. Under your argument there is no reason to ever invest in anything, because 98% of investments come with some level of risk.

Well the purpose of planning is to avoid potential risks and failures. I think owning in this market holds many risks as I mentioned. The risks of owning out weigh renting IMO unless you have that guaranteed income you mentioned. That would be the only time I would be willing to take that risk is with guaranteed income. Sure it would be nice to say I own a place but hey I can rent a home or homes and have my privacy. I'm content with that. Sure down the road you could of had a home paid off by the time you spent all that money on rent but also you could of had to move a few times by unforeseen circumstances. I don't like being tied down. Not in these times.

 

[youngandfree]

One of the important things to remember is your cost of living, ie. Mortgage or rent shouldn't be more than 25% of your net income. And if you don't overextend yourself in every other area of expenses, if something bad does happen, you aren't over your head.

Right now is definitely a buyers market. You just need to have a high enough credit score to get the loan. I say if you have the credit, and job security, and budget right, keep it under 25%, and if you are plannining on staying in the same city for 5 or more years, buy the house.

BTW, unless finances force you to move, I don't see the point of moving if you are staying in the same city. If your job moves or you switch jobs, I probably wouldn't move unless the commute was an hour or more.

 

[HereToStudy]

I think we agree an all points.

Agreed.



Flaw - I think it comes down to different choices for different people. Like I said, I happily rent. And although I do have money for a down payment being saved, it is no where in the near future. I am content with that. But when I become more financially stable, I will be much happier in a condo (Im a city guy) then an apartment.

 

[pool_shark]

As to the original question, for me some of the benefits of home ownership are:

I always have the best parking space and I don't get dings in my car from careless neighbors.

I don't have to deal with the noise of neighbors through the paper thin walls and floors that are in many apartments.

I have more room to re-arrange my furniture.

I have a back yard.

I don't have to go out in the rain or cold walking from the garage to the house.

I can have as many pets as I want.

Since I pay interest and property taxes, I get more money in my paycheck by changing the number of exemptions on my W4 instead of waiting on a tax refund.

I have a chimney for Santa.

 

[Young Gotti]

it's probably been mentioned....but owning a home...you actually own something that is yours...you can do whatever you want in your own home and can get money back for it if you decide to sell it....renting is paying for something that you will never own or get anything back from that money ur putting into it...depending on the landlord theres also limits on whats allowed, for example pets or some landlords don't want tenants painting walls or putting nails in the walls

kind of like leasing cars....i don't see the point...again putting money into something that you will never get back, you really never get money back in cars anyway but atleast something is better than nothing at all

 

[bulldogz]

imo the only benefit is taxes at the end of the year when you claim your mortgage interest, other than that...it's tons of work and who knows if it will really pay off when it come time to sell or when you "have" to sell....if I were able to get a rent controlled apartment or house for life that would be my first choice hands down, but that's just me

Also, some people buy condos/townhouses and still have to worry about neighbors and parking next to another car...lol...

 

[DAdams91982]

imo the only benefit is taxes at the end of the year when you claim your mortgage interest, other than that...it's tons of work and who knows if it will really pay off when it come time to sell or when you "have" to sell....if I were able to get a rent controlled apartment or house for life that would be my first choice hands down, but that's just me

Also, some people buy condos/townhouses and still have to worry about neighbors and parking next to another car...lol...

I can see your thought, but if you do live some where for years, even if you sell it for what you paid, you now have money for your next house. That is not even taking into consideration he tax benefits.

You get rent controlled for life and you live till 90, you have 70 years of rent there... now if you own, you have 30 years of payments (Assuming a standard 30 year loan).

I think the debate was more aimed at freestanding homes rather than condos.

 

[bulldogz]

I can see your thought, but if you do live some where for years, even if you sell it for what you paid, you now have money for your next house. That is not even taking into consideration he tax benefits.

You get rent controlled for life and you live till 90, you have 70 years of rent there... now if you own, you have 30 years of payments (Assuming a standard 30 year loan).

I think the debate was more aimed at freestanding homes rather than condos.

I def understand the 30 verses 70 or whatever payments and those payments over the 30 mark are a waste per say...just sayin that owning is lots of work and not just sayin, I own something now and I'm good to go...!

Guess I am just tired of the raking leaves, snow shoveling/plowing, mowing and general maintenance outside and inside year around...it's non stop and doesn't seem that it will stop anytime soon...I gotta move to florida or some sheit...lol...

 

[Dizmal]

I can see your thought, but if you do live some where for years, even if you sell it for what you paid, you now have money for your next house. That is not even taking into consideration he tax benefits.

You get rent controlled for life and you live till 90, you have 70 years of rent there... now if you own, you have 30 years of payments (Assuming a standard 30 year loan).

I think the debate was more aimed at freestanding homes rather than condos.

And in 70 years you've redone the roof 4x, Furnace, all major appliances, windows, siding, painting, insulation, carpets, yards, buying mowers, rakes, etc, etc. Hope the sump pump doesn't fail and flood the basement, etc, etc.

A home doesn't stay as is for the duration of it's life. It's like anything else. Things wear out and need replacing and most of these things are big $$$ items. In order to keep value you need to keep your home updated. Again, $$$$.

If you rent, that's not a worry. Just saying that in some ways renting can give you peace of mind owning cannot.

There's pro's and con's to everything. All I know is it will be a while before I stick myself with the burden of a home again. But I also plan on moving around quite a bit. If I knew I would be happy some place for 10+ years, I would probably buy. Probably.

 

[DAdams91982]

And in 70 years you've redone the roof 4x, Furnace, all major appliances, windows, siding, painting, insulation, carpets, yards, buying mowers, rakes, etc, etc. Hope the sump pump doesn't fail and flood the basement, etc, etc.

A home doesn't stay as is for the duration of it's life. It's like anything else. Things wear out and need replacing and most of these things are big $$$ items. In order to keep value you need to keep your home updated. Again, $$$$.

If you rent, that's not a worry. Just saying that in some ways renting can give you peace of mind owning cannot.

There's pro's and con's to everything. All I know is it will be a while before I stick myself with the burden of a home again. But I also plan on moving around quite a bit. If I knew I would be happy some place for 10+ years, I would probably buy. Probably.

So you think you pay more of everything you just listed than 40 years of rent. I assume you have never owned a home.. because what you are listing is not the problems you are perceiving them as. My current house is still running the same furnace that was installed 25 years ago. Roofing shingles have a 30 Year warranty. Everything else is quite cheap, aside from a flooding sump pump... something home owners insurance covers.

There are benefits in both, but read any economies major of the pro's and con's, and unless you are a nomad, the pro's lean heavily on home ownership.

 

[airram479]

Thanks for the feedback guy's. I think i'll stay just fine renting until the time is right for me. It just bug's me that some people when you tell that you rent,and your 31 with a stable job they look at you like there is something wrong with you. "Your just throwing money out the window" "Are you crazy...Obama is giving you 8000 to buy a home" "Your just making your landlord rich" etc.etc.etc... Renting with no plan for the future is not a good idea,but socking away as much money for a future purchase might be.

 

[Dizmal]

So you think you pay more of everything you just listed than 40 years of rent. I assume you have never owned a home.. because what you are listing is not the problems you are perceiving them as. My current house is still running the same furnace that was installed 25 years ago. Roofing shingles have a 30 Year warranty. Everything else is quite cheap, aside from a flooding sump pump... something home owners insurance covers.

There are benefits in both, but read any economies major of the pro's and con's, and unless you are a nomad, the pro's lean heavily on home ownership.

Obviously you should just re-read what I typed because the point of it went over your head.

And when you ASSume you just make an ass out of yourself...

 

[DAdams91982]

Obviously you should just re-read what I typed because the point of it went over your head.

And when you ASSume you just make an ass out of yourself...

Wow... how classy of yourself. In a mannered debate you pull out some name calling. Glad to have you around.

 

[Dizmal]

Wow... how classy of yourself. In a mannered debate you pull out some name calling. Glad to have you around.

How classy of to you to assume what I own(ed)...


Equally happy to have you here, buddy.

 

[DAdams91982]

How classy of to you to assume what I own(ed)...


Equally happy to have you here, buddy.

Wow, I didn't know my comment hurt so much. I will tread softer around you next time.

 

[HereToStudy]

:duel:

In conclusion, owning a home works for some people and not for others.

/thread.

 

[DAdams91982]

:duel:

In conclusion, owning a home works for some people and not for others.

/thread.

:bryce:

 

[Dizmal]

Wow, I didn't know my comment hurt so much. I will tread softer around you next time.

Hahaha listen to you! You're the one all up in arms about being called an "ass" when it's a pretty common saying and I wasn't directly infering you ARE an ass.


Let a few tears out and get over it.