4 ms·

Upkeep’s a killer. I kept having people tell me to buy in my 20’s, and I couldn’t fathom their logic. I could rent a 4 bedroom house for less than a mortgaged,

Upkeep’s a killer. I kept having people tell me to buy in my 20’s, and I couldn’t fathom their logic. I could rent a 4 bedroom house for less than a mortgaged, let alone alone a mortgage plus upkeep. I kept doig the math, and I’d have to tie up a huge chunk of capital, and hope the house appreciated faster than upkeep costs, and that I didn’t piss away all gains again in realtor fees when I next needed to move. But really it’s the upkeep everyone kept ignoring in these conversations. $300/mo in my region is pretty standard, and no one would acknowledge how big this cost really was. Rents finally started to skyrocket where I live, so buying finally made sense for us to try to lock in our housing exoense. But even then, the upkeep occassionally makes me wonder if I did the math right. Like can I put off buying a new roof another year? Or will that eat up my maintanence budget for the next couple years?

dawnerd 8y ago
I know it’s a terrible answer but buy a newly constructed house. That’s all I’ve bought and the maintenance on them is close to nothing. Plus the house will be a lot more energy efficient and save even more money. Just stay away from an hoa or condo.
- astura 8y ago
  The premium on new construction is around 20% vs existing structures, so you arent saving any money, just paying up front (and financing it to boot). Plus many people want to live in an already established neighborhood.
  - dawnerd 8y ago
    I’m not so sure about that. My brand new house in the Portland metro was cheaper than comparable older houses. I do get screwed a bit on taxes but they’re still lower than they were at my house in California for the same price. Overall I’m saving money. Going on three years and the only expense I’ve had in upkeep is air filters. Also both new homes I’ve bought were in existing neighborhoods. Not all new homes are in new developments. I’m fact, I would avoid those like the plague. HOA hell + possible mello roos if in California.
    - astura 8y ago
      You can be as "not sure" as you want, data doesn't lie https://www.trulia.com/research/new-home-smell/ https://www.trulia.com/research/new-home-smell/ Portland happens to be among the metros with the smallest new house premium at 14%. Thats still $28,000 premium on a 200,0000 house. Sure "not all new homes" are in new developments, but the vast majority of them are. Most neighborhoods simply don't have empty lots to build on, they don't exist, any new homes are teardowns.
      - dawnerd 8y ago
        I’m guessing trulia is looking as asking price because that’s definitely off based on actual experience shopping around. Because of property tax being much lower, older homes can ask a lot more. Sure new developments here are asking 600k+ for a tiny condo but they’ve all been reducing prices. In my part of town my house was more than 50k lower than an almost identical copy of my house down the street that’s been here for 10 years. Besides, I never said all new homes were cheaper so I’m not sure why you’re even trying to argue it. Shop around and you’ll find a deal.

dawnerd 8y ago

I know it’s a terrible answer but buy a newly constructed house. That’s all I’ve bought and the maintenance on them is close to nothing. Plus the house will be a lot more energy efficient and save even more money. Just stay away from an hoa or condo.

astura 8y ago
The premium on new construction is around 20% vs existing structures, so you arent saving any money, just paying up front (and financing it to boot). Plus many people want to live in an already established neighborhood.
- dawnerd 8y ago
  I’m not so sure about that. My brand new house in the Portland metro was cheaper than comparable older houses. I do get screwed a bit on taxes but they’re still lower than they were at my house in California for the same price. Overall I’m saving money. Going on three years and the only expense I’ve had in upkeep is air filters. Also both new homes I’ve bought were in existing neighborhoods. Not all new homes are in new developments. I’m fact, I would avoid those like the plague. HOA hell + possible mello roos if in California.
  - astura 8y ago
    You can be as "not sure" as you want, data doesn't lie https://www.trulia.com/research/new-home-smell/ https://www.trulia.com/research/new-home-smell/ Portland happens to be among the metros with the smallest new house premium at 14%. Thats still $28,000 premium on a 200,0000 house. Sure "not all new homes" are in new developments, but the vast majority of them are. Most neighborhoods simply don't have empty lots to build on, they don't exist, any new homes are teardowns.
    - dawnerd 8y ago
      I’m guessing trulia is looking as asking price because that’s definitely off based on actual experience shopping around. Because of property tax being much lower, older homes can ask a lot more. Sure new developments here are asking 600k+ for a tiny condo but they’ve all been reducing prices. In my part of town my house was more than 50k lower than an almost identical copy of my house down the street that’s been here for 10 years. Besides, I never said all new homes were cheaper so I’m not sure why you’re even trying to argue it. Shop around and you’ll find a deal.