I think a lot of people who have never owned a home don’t realize how much of a hassle it is.
You don’t even really get much equity out of it. If your houses value increases because of the market, so does all the other housing. All the money you have to spend on maintaining it just keeps from dropping in value.
I know at least a half dozen people who have sold their house and gone back to renting.
That’s what I try to get across to my friends. It’s like we’re all getting older. If you can’t get down and fix your sink drainage, don’t get a house. It’s one thing after another. I’m lucky I can do a lot of stuff myself.
You don’t even really get much equity out of it. If your houses value increases because of the market, so does all the other housing.
Wrong, so very wrong. First you get to keep 30-60% of your payment as principle, as opposed to rent where you keep 0. Second, the mortgage payment stays the same while rent goes up. Even during modest times this makes a noticeable impact but over the last 15 years the effect has been insane. Even just looking at equity your logic is wrong. Assume I buy a house worth $100k (to keep math easy) and pay $0 down. Now assume it doubles in value, the house is worth $200k and the mortgage is worth $100k. You just made $100k or in real growth close to $50k.
If you plan on staying in one spot for 4+ years, buying is essentially always the correct move. Renting gives you the ability to move as you desire but you’re paying in unseen ways.
But then you own a home with a new roof or Hvac.
Not disputing these are very expensive (and that wages have been left in the dust by inflation for decades), but my parents didn’t get HVAC until 3 years ago.
And when you rent you only get a place to live, no equity.
I think a lot of people who have never owned a home don’t realize how much of a hassle it is.
You don’t even really get much equity out of it. If your houses value increases because of the market, so does all the other housing. All the money you have to spend on maintaining it just keeps from dropping in value.
I know at least a half dozen people who have sold their house and gone back to renting.
That’s what I try to get across to my friends. It’s like we’re all getting older. If you can’t get down and fix your sink drainage, don’t get a house. It’s one thing after another. I’m lucky I can do a lot of stuff myself.
Wrong, so very wrong. First you get to keep 30-60% of your payment as principle, as opposed to rent where you keep 0. Second, the mortgage payment stays the same while rent goes up. Even during modest times this makes a noticeable impact but over the last 15 years the effect has been insane. Even just looking at equity your logic is wrong. Assume I buy a house worth $100k (to keep math easy) and pay $0 down. Now assume it doubles in value, the house is worth $200k and the mortgage is worth $100k. You just made $100k or in real growth close to $50k.
If you plan on staying in one spot for 4+ years, buying is essentially always the correct move. Renting gives you the ability to move as you desire but you’re paying in unseen ways.
You do get more than if you rent, and pay someone else’s mortgage.
Except if you rent you don’t have the same financial risk. A new roof or HVAC can easily be over $20k.
But then you own a home with a new roof or Hvac. Not disputing these are very expensive (and that wages have been left in the dust by inflation for decades), but my parents didn’t get HVAC until 3 years ago. And when you rent you only get a place to live, no equity.