4 ms·

Having been burned badly in the real estate meltdown, there is a lot more freedom in renting than buying. I'm just now getting slightly inclined to consider buy

by jayess 8y ago

Having been burned badly in the real estate meltdown, there is a lot more freedom in renting than buying. I'm just now getting slightly inclined to consider buying again, but it would have to be a whopping deal. I've enjoyed renting since at least 2010. I especially like the ability to call the landlord and tell them that the sink is leaking and they need to get it fixed. Or the water heater stopped working, come out and fix it... Nothing out of pocket for me.

scarface74 8y ago
When it comes to making a trade off for convenience vs. cost, I usually choose cost within reason and I also got burned by the real estate meltdown. I was in no hurry to buy. But the rent where we were staying went from $1300 to $1800 within 3 years for a 3 bedroom, 1650 square foot apartment. We were able to buy a house, a brand new build 3000 square feet 5 bed/3.5 bath for $2000/month with only 3.5% down in a neighborhood zoned to top rated schools. As far as convenience, we pay a lawn service $140/month to cut our grass and now that the home warranty is up (paid for by the builder), we pay about $700/year for a "home warranty" when anything breaks you just call them and pay a deductible. Is The warranty a good deal financially? Probably not, but it is convenient.
- jronsomers 8y ago
  That is awesome and you are able to buy a house like that, especially a brand new build (to your liking). However, I want to mention it seems you are in the right place at the right time. Your case is an outlier in my opinion and I'm happy you are taking advantage of it. Especially considering that it is in a great school zone. I just felt that this isn't normal, even for the Midwest (which is where i can only imagine you are). That is a neat 'home warranty' thing you have though. I've never seen that before. Whenever I own a home, that sounds enticing to have.
  - scarface74 8y ago
    As far as being an outlier, it's not that our case is just an outlier, so is our house. We had to move further out into the suburbs to get that price. It's not a bad commute. I'm not endorsing this particular provider. It's just the first one that comes up when you Google "Home Warranty" https://www.ahs.com/home-warranty/ https://www.ahs.com/home-warranty/ Average price is around $850. https://www.homeadvisor.com/cost/inspectors-and-appraisers/purchase-a-home-warranty/ https://www.homeadvisor.com/cost/inspectors-and-appraisers/p... When I was a landlord and owned three rental properties they were worth every penny. Let me emphasize that buying one is statistically not a good deal and it usually makes more sense just to "self insure" and save for repairs. But it is more of a convenience thing.
- moorhosj 8y ago
  $2000 mortgage $140 lawn care $58 warranty Instead of paying the $1,800/month, you are now paying $2,200/month.
  - scarface74 8y ago
    Yes, but the rent will keep rising with market prices and we were living in the most sought after part of town -- the most affluent city in the state. The mortgage will never increase and is excellent inflation hedge. The property taxes may increase slowly but after 5-7 years, we can get rid of the approximate $300 a month in PMI. We also have 1300 more square feet, a separate house with a yard instead of an apartment, 2 more bedrooms, 1-1/2 more baths, a separate office and we don't pay the mandatory $100 a month for crappy cable and capped internet from Comcast -- as part of the lease, you had to pay for cable. We pay $70 a month for gigabit internet from AT&T. Heck I save $80/month by getting rid of my gym membership and converting one of the spare bedrooms to a gym.
daxorid 8y ago
> there is a lot more freedom in renting than buying There are varying definitions of "freedom" to consider. Sure, there is the freedom of being able to walk away after 12 months to someplace else. But there is also the freedom of being able to plant a garden, or paint your room, or install shelving, or excavate a root cellar, or install a new doorknob, etc, without having to get express written permission from your landlord (which will almost always be no).
- A1phab3t 8y ago
  That is almost the entire reason that I like owning. The kitchen looks like I want it to look, the walls are the color I want them to be, the doorbell is wifi, I have a Nest thermostat, and if I don't like that there's a peach tree in the front yard I have it removed (true story!).

by jayess 8y ago

scarface74 8y ago

When it comes to making a trade off for convenience vs. cost, I usually choose cost within reason and I also got burned by the real estate meltdown. I was in no hurry to buy. But the rent where we were staying went from $1300 to $1800 within 3 years for a 3 bedroom, 1650 square foot apartment. We were able to buy a house, a brand new build 3000 square feet 5 bed/3.5 bath for $2000/month with only 3.5% down in a neighborhood zoned to top rated schools. As far as convenience, we pay a lawn service $140/month to cut our grass and now that the home warranty is up (paid for by the builder), we pay about $700/year for a "home warranty" when anything breaks you just call them and pay a deductible. Is The warranty a good deal financially? Probably not, but it is convenient.

jronsomers 8y ago
That is awesome and you are able to buy a house like that, especially a brand new build (to your liking). However, I want to mention it seems you are in the right place at the right time. Your case is an outlier in my opinion and I'm happy you are taking advantage of it. Especially considering that it is in a great school zone. I just felt that this isn't normal, even for the Midwest (which is where i can only imagine you are). That is a neat 'home warranty' thing you have though. I've never seen that before. Whenever I own a home, that sounds enticing to have.
- scarface74 8y ago
  As far as being an outlier, it's not that our case is just an outlier, so is our house. We had to move further out into the suburbs to get that price. It's not a bad commute. I'm not endorsing this particular provider. It's just the first one that comes up when you Google "Home Warranty" https://www.ahs.com/home-warranty/ https://www.ahs.com/home-warranty/ Average price is around $850. https://www.homeadvisor.com/cost/inspectors-and-appraisers/purchase-a-home-warranty/ https://www.homeadvisor.com/cost/inspectors-and-appraisers/p... When I was a landlord and owned three rental properties they were worth every penny. Let me emphasize that buying one is statistically not a good deal and it usually makes more sense just to "self insure" and save for repairs. But it is more of a convenience thing.
moorhosj 8y ago
$2000 mortgage $140 lawn care $58 warranty Instead of paying the $1,800/month, you are now paying $2,200/month.
- scarface74 8y ago
  Yes, but the rent will keep rising with market prices and we were living in the most sought after part of town -- the most affluent city in the state. The mortgage will never increase and is excellent inflation hedge. The property taxes may increase slowly but after 5-7 years, we can get rid of the approximate $300 a month in PMI. We also have 1300 more square feet, a separate house with a yard instead of an apartment, 2 more bedrooms, 1-1/2 more baths, a separate office and we don't pay the mandatory $100 a month for crappy cable and capped internet from Comcast -- as part of the lease, you had to pay for cable. We pay $70 a month for gigabit internet from AT&T. Heck I save $80/month by getting rid of my gym membership and converting one of the spare bedrooms to a gym.

daxorid 8y ago

> there is a lot more freedom in renting than buying There are varying definitions of "freedom" to consider. Sure, there is the freedom of being able to walk away after 12 months to someplace else. But there is also the freedom of being able to plant a garden, or paint your room, or install shelving, or excavate a root cellar, or install a new doorknob, etc, without having to get express written permission from your landlord (which will almost always be no).

A1phab3t 8y ago
That is almost the entire reason that I like owning. The kitchen looks like I want it to look, the walls are the color I want them to be, the doorbell is wifi, I have a Nest thermostat, and if I don't like that there's a peach tree in the front yard I have it removed (true story!).