Is home ownership overrated?

flyny

flyny

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After peeping some comments in the monthly bills thread, this question came up. So I wonder. Is it?

Thoughts?

Would you rather pay a big lump sum down, and pay $X for 360 months?

Or would you rather pay that same $X monthly forever?
 
Yeah said:
Keep thinking that ownership is overrated.

More rental income for me.

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factoids
 
Depending where you live, it can be overrated.

After the mortgage payments, taxes and maintenance. You end up paying a big amount of money to live somewhere and build equity.

If you would rent at a much lower amount, you can used the extra money to invest in something else (etf, mutual funds, stocks).

And you could end up with the same amount of money in 30 years (investment anount vs the house value paid off in 30 years).

It really depends on the house market (if you're anticipating a nice growth, then house makes alot of sens)

In my opinion, it's all about the lifestyle. Do you want a house because you're tired of being tenant? Do you prefer to rent because every other year you can change city or even country?

I think it's overrated because everybody says it's the only way to go. But when you break it down, in alot of areas, it's not an automatic decision.

On the other hand, buying a rental is a very good move if you have the time and energy to manage it. For tax purposes and having a mortgage paying itself, it's great.
 
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Depends on your priorities. At this point in my life, I don't want to landscape, shovel snow, and do all the other little small things that come with owning a house. I also want the flexibility to move if I want to. Renting a condo with a HOA is the best for me right now because they take care of all those small things that I dislike. Some people want to customize their property, hold huge events, and stay in one location so a house is a good idea for that.
 
I don't think I'd ever want a single family home or townhouse but I do eventually want to buy a condo.
 
my opinion, it's all about the lifestyle. Do you want a house because you're tired of being tenant? Do you prefer to rent because every other year you can change city or even country?

I think it's overrated because everybody says it's the only way to go. But when you break it down, in alot of areas, it's not an automatic decision.
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Well said. For someone that doesn't know where they will be in a year, I could see why they wouldn't be interested in owning anything. They would like to come and go as they please.

Also for anyone that doesn't really see themselves getting married and having kids, I could see the reluctance
 
Nope. I love owning a house.

My mortgage is cheaper than what rent would be for a much smaller apartment or house of the same size. I can paint, change anything I want, when I want.

Renting is throwing money away in most instances. There are occasions when renting makes more sense, but it doesnt make sense for me.
 
Yes.

And Im a homeowner.

It really depends on the individual and their circumstances. For example, my sister is a dentist, and makes around 150k per year. She could easily afford to buy a home, but she's single, no kids, and moves every 2 years. I couldn't imagine the hassle of buying and selling a home every few years.

Me, on the other hand, am married with kids, and am more or less committed to staying in the same general area for at least the next 10 years.
 
Definitely not but like anything else you need to be smart about it and make sure you're getting a good deal. You're gonna have to live someplace and if you own the home at least you have something to show for the last 30 years of money you're spending. Once you own it you can sell it, rent it out or just enjoy not spending money every month on a mortgage. It can be a solid investment if you play your cards rights. If you constantly rent you'll always be paying rent and rent prices tend to go up. Repairs and upgrades do add up and more home owners are forced to learn handy skills like laying floors and stuff like that but its worth it in the end. I don't own a home yet but once I settle someplace I fully intend to buy a house (hopefully more than one)
 
As long as u got some good property Owning is always an asset ...now if u gon be one of those ppl that just buy a house just to buy one n pay the mortgage forever , then you might as well rent ...at least u won't be locked in forever n somebody else taking care of the taxes n maintenance
 
Owning can be extra income. I'm in a position right now that we will be moving in about 4 years. I can either keep this and have a little extra income or flat out sell. I'm in a really good area that's starting to boom. Somebody in my neighborhood sold his house 40k over the value he purchased.
 
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I think viewing home ownership as an investment is overrated. Yeah it's cool to see a jump in home value based on the purchase price. But after you take out the initial cost of purchasing the home (closing costs, inspectors, potential renovations), maintenance over time, and the interest you paid over time did you really gain anything?

Take a look at some online mortgage calculators for the life of a loan. If you take out the entire value of a home, example $300k, after 30 years of ownership you would end up paying back the initial $300k and something like $200k in interest over time. So unless your home value jumped over $500k that wasn't really a profitable investmen
 
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silkboi said:
I think viewing home ownership as an investment is overrated. Yeah it's cool to see a jump in home value based on the purchase price. But after you take out the initial cost of purchasing the home (closing costs, inspectors, potential renovations), maintenance over time, and the interest you paid over time did you really gain anything?

Take a look at some online mortgage calculators for the life of a loan. If you take out the entire value of a home, example $300k, after 30 years of ownership you would end up paying back the initial $300k and something like $200k in interest over time. So unless your home value jumped over $500k that wasn't really a profitable investment.
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This is a very naive way of thinking about home ownership.

Paying $200K over the course of 30 years to own the property is great in comparison to paying $500K in rent and having no equity/property to show for it after 30 years. Not to mention the differences in taxes, the ability to increase equity and value by renovating, etc.
 
Yeah said:
silkboi said:
I think viewing home ownership as an investment is overrated. Yeah it's cool to see a jump in home value based on the purchase price. But after you take out the initial cost of purchasing the home (closing costs, inspectors, potential renovations), maintenance over time, and the interest you paid over time did you really gain anything?

Take a look at some online mortgage calculators for the life of a loan. If you take out the entire value of a home, example $300k, after 30 years of ownership you would end up paying back the initial $300k and something like $200k in interest over time. So unless your home value jumped over $500k that wasn't really a profitable investment.
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This is a very naive way of thinking about home ownership.

Paying $200K over the course of 30 years to own the property is great in comparison to paying $500K in rent and having no equity/property to show for it after 30 years. Not to mention the differences in taxes, the ability to increase equity and value by renovating, etc.
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What does that have to do with what I said? I'm not comparing buying a home versus renting. I'm talking about viewing a home as an investment.

I wouldn't go into a home ownership as "I can make this much after x amount of years". I would go into home ownership as "this is a great house, in a great neighborhood with good schools. Its close to work and I want to raise a family here."

If you end up making money on top, great, but that shouldn't be your main focus. Financially your focus should be on whether or not you can afford it.
 
I was agreeing with you. It is a naive way to think about homeownership because of the reasons I listed.

Some of yall NTers be so thirsty to argue :lol:
 
Yeah said:
I was agreeing with you. It is a naive way to think about homeownership because of the reasons I listed.

Some of yall NTers be so thirsty to argue :lol:
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What you said sounded like caping for home ownership as an investment. But whatever.
 
The thing I love most about having my own home is the privacy and the yard. I have my own yard where I can do whatever the **** I want, have a bonfire, build a miniramp, have a party/bbq whenevrt I want.
 
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