6 ms·

Well, why are you buying a house just to sell it a few years later? Your post mentioned at least four different cities where you lived in an apartment. How w

Well, why are you buying a house just to sell it a few years later? Your post mentioned at least four different cities where you lived in an apartment. How would owning a house have changed your mobility? What would it have done to your overall cost of housing if you needed to sell one house and buy another?

pstack 16y ago
I agree that owning a home limits your mobility and that is one reason why I put it off. In retrospect, I should have bought a home earlier, anyway. In fact, when I first moved to Denver, I started looking at homes and decided against it. After all, I didn't plan to live here forever. Only awhile. Next thing I knew, I had been here for five years and spent that whole time giving money to someone else. The cities I listed as having lived in were actually three (I realize that I was unclear about California, where I worked in SF but actually lived in San Jose). I can break it down to under a year in one place and at least six years in each of the other two places. Even there, I actually could have probably found a way to not move, so it wouldn't even have been an issue. (I've had the same employer for almost fifteen years). So, in my case, it was only a perceived need for mobility and unwillingness to say "I'm here, for a long time" that kept me from owning a home and it was probably not the best financial decision, looking back. I sacrificed a lot of income over the years for something I thought I needed, but never did. It is definitely a bigger concern, now, than ever before. I absolutely concede that point. My grandfather built his home and lived there for more than fifty years. I will be happy if I keep my home for ten or fifteen. Our lives and careers change too often, now. Buying a home now requires the added consideration of whether you'll still be here in five or ten years and how many times (especially in technology) has taking a new job also required moving? (By the way, I think they say it tends to require about five years of ownership to compensate for the costs of buying and selling a house - and that was back when houses were increasing in prices, instead of decreasing). Of course, if home prices reached a naturally lower point instead of being artificially kept up, then the affordability may trump all the other concerns. Hell, if I could own a nice home for $100k, I'd buy one in all three of my favorite cities and never have to worry about uncertainties of live and mobility again!
- mattmanser 16y ago
  I never get the mentality of renting being 'giving money to someone else'. What do you think a mortgage is? The majority of your payments in the first 5 years go to interest, which is just giving money to a different person. And on top of that you're paying more in hidden costs, stuff like estate agent fees, tax on any future house sale, home insurance, structural problems, boilers, plumbing, etc. which is giving money to more different people just not at a convenient monthly time.
  - nhangen 16y ago
    Yes, but when you pay off the home, it's yours. Sure, you still have to pay maintenance, taxes, and insurance, but a home warranty can solve many of the problems associated with the first, and you have to pay insurance anyway (renters). I moved to FL and we're renting out our NC home while paying rent in Florida, and I loathe being a renter again.
    - illumin8 16y ago
      You should realize that it's not really yours. The government can and will take it for many various reasons. You merely have a "right to use" it.
      - CamperBob 16y ago
        Would be curious to hear why you were modded down. The fact is, cash-strapped states and municipalities are going to see property owners as sheep primed for the shearing over the next several years. As a homeowner you may be able to avoid paying rent, and you may even be able to avoid paying interest, but good luck avoiding the property-tax increases that are probably coming your way.
        salemh 16y ago
        You need sources, as does the down-voted comment. Cash-strapped states does not equal "eminent domain" on random suburbs. Some tax-levels on property taxes are going down or neutral (Utah) while others remain the same (California, both () examples are personal experience) and can't be used as a broad paint-brush stroke. Interest is a tax write off, many states are suing for home-owner protection, the very large fraud lawsuits against mortgage lenders, etc. http://www.google.com/#sclient=psy&hl=en&source=hp&q=attorney+general+mortgage+lender+lawsuit&aq=f&aqi=&aql=&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=668845393480168f http://www.google.com/#sclient=psy&hl=en&source=hp&#...
bane 16y ago
I'd probably just rent my house out. Over the years I've purchased enough of the principle (by overpaying on the mortgage, the difference buys down the principle) that my monthly payment is about the same as the rental rate for a home this size in my area. Even if I lose a little bit every month, I'm just buying more of my own place with somebody else's money. Something the parent mismentioned is not that he'll be paying $1000/mo 5 years from now while rental rates will simply go up, but you can actually reduce that rate now and free up more of your income for later. It's actually the sole reason I've been able to fund my co-founder to work on our startup full-time while I work a regular boring old day job, I've paid down so much of the principle the past few years that, along with pay raises from my day job, I have enough cash on hand to float another person for the foreseeable future.
- pstack 16y ago
  In the year that I've owned my home, I've toyed with the idea of renting out a room or two. I have three bedrooms and I don't use any of them. I live in my basement. I know, I know. That sounds stupid. I have a basement that is the size of all but the largest apartment I've rented and it is where my sweet home theater is as well as my home office (I telecommute). Since it's where I spend so much time, I threw a sofa and a futon and an enormous bean bag down there (and a fridge and microwave). Now, I never even go to the top floor where the bedrooms are. I could rent out all the bedrooms, including the master bedroom (with its own bathroom). I don't even know what the right price would be and I've heard plenty of horror stories about renting to people, but if I renteded even two of the rooms at only $350/mo, I'd have two thirds of my housing costs covered! And, if I ever need to move, I could buy a house somewhere else and keep this one to rent it out. Again, I hear being a landlord sucks - but I have a handyman nearby who could do on-site work for me and once the house is paid off, the renters would basically be paying the mortgage on my second home. Also, I plan to pay down the principal, too. I'm not making any extra payments just yet, but I am putting money in a savings account. If I have an emergency, I have access to that money today. If I don't have an emergency, then once I have enough saved up, I can pay off a hell of a lot of my house at once. Owning a home can be a hassle. God damn, I sure as hell learned that right out of the gate. (I did a lot of remodeling to fit my lifestyle and my electrical needs, among other things). One thing it gives you, however, is more options. More choices, even if not mobility.

pstack 16y ago

I agree that owning a home limits your mobility and that is one reason why I put it off. In retrospect, I should have bought a home earlier, anyway. In fact, when I first moved to Denver, I started looking at homes and decided against it. After all, I didn't plan to live here forever. Only awhile. Next thing I knew, I had been here for five years and spent that whole time giving money to someone else. The cities I listed as having lived in were actually three (I realize that I was unclear about California, where I worked in SF but actually lived in San Jose). I can break it down to under a year in one place and at least six years in each of the other two places. Even there, I actually could have probably found a way to not move, so it wouldn't even have been an issue. (I've had the same employer for almost fifteen years). So, in my case, it was only a perceived need for mobility and unwillingness to say "I'm here, for a long time" that kept me from owning a home and it was probably not the best financial decision, looking back. I sacrificed a lot of income over the years for something I thought I needed, but never did. It is definitely a bigger concern, now, than ever before. I absolutely concede that point. My grandfather built his home and lived there for more than fifty years. I will be happy if I keep my home for ten or fifteen. Our lives and careers change too often, now. Buying a home now requires the added consideration of whether you'll still be here in five or ten years and how many times (especially in technology) has taking a new job also required moving? (By the way, I think they say it tends to require about five years of ownership to compensate for the costs of buying and selling a house - and that was back when houses were increasing in prices, instead of decreasing). Of course, if home prices reached a naturally lower point instead of being artificially kept up, then the affordability may trump all the other concerns. Hell, if I could own a nice home for $100k, I'd buy one in all three of my favorite cities and never have to worry about uncertainties of live and mobility again!

mattmanser 16y ago
I never get the mentality of renting being 'giving money to someone else'. What do you think a mortgage is? The majority of your payments in the first 5 years go to interest, which is just giving money to a different person. And on top of that you're paying more in hidden costs, stuff like estate agent fees, tax on any future house sale, home insurance, structural problems, boilers, plumbing, etc. which is giving money to more different people just not at a convenient monthly time.
- nhangen 16y ago
  Yes, but when you pay off the home, it's yours. Sure, you still have to pay maintenance, taxes, and insurance, but a home warranty can solve many of the problems associated with the first, and you have to pay insurance anyway (renters). I moved to FL and we're renting out our NC home while paying rent in Florida, and I loathe being a renter again.
  - illumin8 16y ago
    You should realize that it's not really yours. The government can and will take it for many various reasons. You merely have a "right to use" it.
    - CamperBob 16y ago
      Would be curious to hear why you were modded down. The fact is, cash-strapped states and municipalities are going to see property owners as sheep primed for the shearing over the next several years. As a homeowner you may be able to avoid paying rent, and you may even be able to avoid paying interest, but good luck avoiding the property-tax increases that are probably coming your way.
      - salemh 16y ago
        You need sources, as does the down-voted comment. Cash-strapped states does not equal "eminent domain" on random suburbs. Some tax-levels on property taxes are going down or neutral (Utah) while others remain the same (California, both () examples are personal experience) and can't be used as a broad paint-brush stroke. Interest is a tax write off, many states are suing for home-owner protection, the very large fraud lawsuits against mortgage lenders, etc. http://www.google.com/#sclient=psy&hl=en&source=hp&q=attorney+general+mortgage+lender+lawsuit&aq=f&aqi=&aql=&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=668845393480168f http://www.google.com/#sclient=psy&hl=en&source=hp&#...

bane 16y ago

I'd probably just rent my house out. Over the years I've purchased enough of the principle (by overpaying on the mortgage, the difference buys down the principle) that my monthly payment is about the same as the rental rate for a home this size in my area. Even if I lose a little bit every month, I'm just buying more of my own place with somebody else's money. Something the parent mismentioned is not that he'll be paying $1000/mo 5 years from now while rental rates will simply go up, but you can actually reduce that rate now and free up more of your income for later. It's actually the sole reason I've been able to fund my co-founder to work on our startup full-time while I work a regular boring old day job, I've paid down so much of the principle the past few years that, along with pay raises from my day job, I have enough cash on hand to float another person for the foreseeable future.

pstack 16y ago
In the year that I've owned my home, I've toyed with the idea of renting out a room or two. I have three bedrooms and I don't use any of them. I live in my basement. I know, I know. That sounds stupid. I have a basement that is the size of all but the largest apartment I've rented and it is where my sweet home theater is as well as my home office (I telecommute). Since it's where I spend so much time, I threw a sofa and a futon and an enormous bean bag down there (and a fridge and microwave). Now, I never even go to the top floor where the bedrooms are. I could rent out all the bedrooms, including the master bedroom (with its own bathroom). I don't even know what the right price would be and I've heard plenty of horror stories about renting to people, but if I renteded even two of the rooms at only $350/mo, I'd have two thirds of my housing costs covered! And, if I ever need to move, I could buy a house somewhere else and keep this one to rent it out. Again, I hear being a landlord sucks - but I have a handyman nearby who could do on-site work for me and once the house is paid off, the renters would basically be paying the mortgage on my second home. Also, I plan to pay down the principal, too. I'm not making any extra payments just yet, but I am putting money in a savings account. If I have an emergency, I have access to that money today. If I don't have an emergency, then once I have enough saved up, I can pay off a hell of a lot of my house at once. Owning a home can be a hassle. God damn, I sure as hell learned that right out of the gate. (I did a lot of remodeling to fit my lifestyle and my electrical needs, among other things). One thing it gives you, however, is more options. More choices, even if not mobility.