Once again, we're 'on the same page'. My fridge has all the piping needed to equip an ice maker, but I wouldn't have one of the damn things. I do have four ice-cube trays, and even on hot days when my appetite for rye whiskey and 'real-sugar' Pepsi on the rocks is greater than usual, I never run out. Guys like you and me, I suspect that we're happy with what we have, experience a mellow 'contentedness' that most other people only dream of, and, we've got some money 'put away'. I hope that's true for you, and, I do enjoy it myself. One way or another, both of us used our wits, our industry, our dogged determination, and talent to EARN it. Congratulations! Maybe we're like 'Garth' and 'Hub' in that movie, "Secondhand Lions".... . "We're DONE working, so now we sit on our asses and do what we PLEASE...."
Well I did fib a little. I technically own 1 ice tray but it was my grandmothers and is one of those old metal jobbies that freezes your hands to it and rips your skin off if you can bear holding onto it long enough to bust the cubes out so I never use that thing ever. It was designed by someone who really likes to be tortured. I keep it in the shed so as not to be tempted by Satan. But otherwise, yes. I am pragmatic about bells and whistles purchases. I have a closet full of kitchen gizmo gifts used once so the person would stop asking if I ever tried it. To me, crock pot tastes better than sous vide so I didn't really want, need or ask for a machine to boil my meat in its own juices in a vacuum bag and crap like that. My dehydrator is the only real kitchen luxury I have found that is worth it. I don't even use my microwave a lot. A stove works just as well. My attitude is just the byproduct of having a cheapskate dad and a mom who has never liked changing how she does things I guess. IDK.
Good for you... get ready to watch your bank account swell enormously once that mortgage is finished off! In two or three years your plus-balance will be off the chart, and you'll be SO happy....
I rent.. to other people! LOL I have a couple of places on AirBNB, and two other places , tho' I just sold one of them to my stepson (I discounted it $20k) Ireally need to unload some more of our property (well... come to think of it, I have!) I want to move my wife's beauty shop into my building so we can sell her old one and the trailer house on the property too.
I rent and am saving for a home. There is plenty I can afford in my area right now, the problem is that the inventory doesn't stay on the market for more than like 20 days on average and usually sells to New Yorkers willing to pay cash. At this point I can't compete with that.
In your difficult situation, I'd wait anyway. At some point, the Fed will have to stop 'printing' imaginary money, crushing interest rates to zero, and buying 'bonds' based on nothingness. That's when all the people who have been 'kiting' their house-buying activity on the assumption that this enormous fraud-balloon will continue its ascent will go into default, and then you may be able to buy a good house for a LOT less than these are priced at now. So, even though you (and me) are getting CRAP for interest on our savings accounts, go ahead and continue to save anyway. When all the stock market 'casino' hoopla begins to evaporate, cash will be king! And, if these central banks destroy the dollar, well, then we're all screwed anyway....
I'm fine waiting. There are certain advantages to renting. We're in a very high-COL, high-tax state and we don't pay property taxes and utilities besides electricity are included in rent, so our utility bill is very low. Obviously I would like to own eventually but even if we did buy now I have a feeling that, as an investment, we would be bagholding for a long time at these prices and rates.
Repairs and upkeep is never free. But if the roof is leaking and I'm renting its not my responsibility. The land lord will fix or I will move without worrying about my investment rotting.
And who do you think pays for that roof? When you move into another rental who do you think pays for the repairs and upkeep? And I can't imagine moving because my roof leaks.
Repairs are not 'assessed' to one particular renter unless they are they ONLY renter. A landlord may increase rents proportionately across the board to offset the costs of repairs, but quite often they already have, since roof problems are usually known before the become damaging to the property. Funding before the repair is necessary through rent increases is preferred, rather than writing that big ol' check and collecting it slowly after the fact. Liquidity of cash assets....
You are paying them through your rent regardless. Anyway, do whatever works best for you. The average person only stays in their home for something like 7 years so there is always market churn at any price and rates.
I really don't know what your point is or what you think my answer should be. So answer your own questions and inform us all.
You pay for those repairs and upkeep through the rent you pay. So why not pay for them for something you own?
Because, if single I may not want the responsibility of spending my time and money. Coming up with 15K for a roof, 10k for central air or 10k to paint the house if it needs it can be a headache. Not for all people in all situations. If renting I am responsible for paying an amount of rent I can afford month to month and don't have to deal with surprises. If my land lord raises the rent I can decide to stay or move on to a better lease. Does that make sense?
We do but we're not paying 7-10K a year in property taxes that we would if we owned a house in this state. It differs where you live but to me it makes no sense to buy in my area right now when prices are this high and we would be competing against New Yorkers who can pay all cash. Best to wait for rates to rise and prices to stabilize a bit rather than FOMO into a much higher monthly payment. Renting is a better option while we save and invest.
Property taxes aren't going down ever so if you plan to stay in that area, you might as well get used to it. If you plan to settle elsewhere, maybe you need to consider biting that bullet as well. Property taxes in my area is a little less than 1% per year (.84% to be exact). I think the California average rate is lower.
We are probably going to stay here (not my choice). If we owned an equivalent location in the same area in terms of size, it would run us another $500-$700 per month compared to what we pay now. I'm not against it in principle but the risk-reward at this point in time is too high for me; the elevated price levels in this area mean even higher property taxes and interest rates have only one direction to go at this point. There will be a better time to buy and I don't want to be caught holding bags.
You never own anything free and clear if you have to pay the government for the privilege of living there.
I pay approximately the same for my mortgage as it would be to rent in the area I am in. Maybe a little more because I refinanced for a 15 year but it will be paid off by the time I retire. So far the property value has doubled and will go higher due to development around here but then Uncle Sam will take his share of my equity and taxes keep going up due to the increase value, 6% more from last year.
So contributing to things like public road upkeep, schools, fire service, garbage service via taxes on your real estate is 'paying for the privilege of living there'?
