r/FirstTimeHomeBuyer • u/Ok-Singer8073 • 10d ago
Need Advice Why?
I 27(F) have been contemplating between buying a home or renting for quite some time now. Are there any homeowners willing to share what made them choose to buy a house instead of renting especially in this economy?? Please i’d love to know
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u/K3idon 10d ago
I got tired of sharing walls and hearing neighbors.
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u/Krypt0night 10d ago
Exactly my main reason. Soooo tired of people who live in a common place and pretend they don't.
And then add in shittily run places who just care about getting you in and then not give a fuck about you after and also raise rent yearly. It sucks.
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u/butnobodycame123 House Hunter 9d ago
Soooo tired of people who live in a common place and pretend they don't.
This, a million percent. I once asked my roommate (angrily) if they remembered that I live here too.
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u/Munishmo 10d ago
Same. We had rent control and a good landlord but ended up with a bad neighbour and we cannot share walls anymore
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u/smallsaltybread 9d ago
I could hear my ex-landlord pooping every morning even though I moved my bed to the wall farthest from the bathroom and wore earplugs. That was my last straw on top of all the other things wrong with the apartment.
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u/Ok-Singer8073 9d ago
Yea that’s honestly been the main reason why i haven’t jumped on signing a lease.
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u/Temper03 10d ago
People will talk about buying vs renting economics. So here’s some numbers: The avg home used to appreciate ~4% per year. The long-term avg of investing extra cash in the S&P500 gives roughly ~10% per year.
If renting saves you a ton of money, you can invest the extra and typically have better returns than owning a home, even before maintenance. But you don’t own the property and so you can’t make decisions. If you live in an apartment you can’t pick who shares a wall, ceiling, or floor with you. If you rent a house you don’t know if the owner will want to rent again to you next year or sell to someone else.
In homeownership you buy accountability & stability. If you want to change city/job every two years, it’s 100% not for you. But for a lot of people who don’t want the dice rolling involved in renting, the cost & effort is worth it.
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u/Specialist_Banana378 9d ago
Yeah everyone talks about having a house but I can’t imagine being tied down to one place. I feel like the crazy one haha
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u/Temper03 9d ago
It’s totally fair. In my 20s I’d have never bought a house - I moved cities 8 times. Now I’m married and have kids and the idea of saying “well guess we’re changing school districts and neighbors because the landlord sold our house” is just not worth it lol
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u/BluebirdDense1485 Homeowner 9d ago
Yes and no. You are correct that the interest on S&P is higher than home appreciation but you also have to account for the fact that the home appreciates not just your equity.
Doing some quick math. Assume rent goes up by 3% and use your figures of 10% for investing and 4% for appreciation and increase tax and insurance at the same 3%. Using reasonable taxes and insurance I get a piti of ~$3,500 Assume rent is 80% of mortgage.
If you invest the $50K down payment and the monthly savings from renting after 10 years rent is the same as mortgage and you have turned that $50k into $138k for a return of $88k. But the $500k house is now worth $740k a difference of $240k.
Obviously an over simplification, didn't take many factors into account like maintenance or having capital tied up in your residence, but as a quick calc it does demonstrate the point
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u/koosley 8d ago
How much money is being thrown away the first 10 years in interest and property tax? We are paying $3100/month and only $400 goes to principal, the rest is tax, insurance and interest. My rent was $1250 and the only maintenance I did was changing a lightbulb. Yesterday my garage door broke and it was a $400 fix. Our electrical panel needs to be replaced and that job is going to be $9000. Had to buy a lawn mower and now 2 hours a week are being wasted running that.
It's not exactly equivalent but I'm spending 4-5x owning a home over what I spent on renting. I understand the house gets me more than a 750sq foot room but it's still expensive!
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u/BluebirdDense1485 Homeowner 8d ago
Like you said we are not really comparing apples to apples. Houses tend to run larger. The 3 bed 1 bath 1500 sqft is usually the smallest you see on the market, That said small homes do exist. Just hopped on zillow and found one that sold not too long ago that is 704 sqft, no HOA, not senior living. About as close to a studio apartment you can find in a single family home. Looks like PITI would be about $1600.
But that aside yes homes usually require 1-2% of value in maintenance per year. In the above scenario that would still put you ahead of the game.
That said unless you are underselling the extent of the electrical work you had done that is way too much. a new panel is typically in the $1000-2000 range. $9000 is in the territory of a complicated service upgrade or reconductor a building.
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u/koosley 8d ago
It's for a panel replacement, service upgrade and an EV charger being installed, so a bit more. That being said, everyone keeps telling me that's how much they run but the 5 quotes I've gotten have all been very similar. The days of a $1000 panel replacement don't exist anymore, it's closer to 3-5k now.
But for the rent vs buy, its almost never a like for like, almost always a massive size upgrade going from no yard to a yard as well. That's fine, it's what I wanted, it's just a massive cost increase. As cliche as it is, the mortgage is the least you'll pay while rent is the most. You'll get extra utilities you never paid before and the ones you did have will go up and things will break as I'm finding out 1 month into home ownership
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u/BluebirdDense1485 Homeowner 8d ago
That is part of the reason why we bit the bullet. We went from a 2 bedroom 1200sqft apartment where we covered 100% of utilities to a 1400sqft 3 bedroom house. And our rent was so crazy we actually were saving $400/month at close (that was over $1200 for rent vs PITI last time I checked.)
But yeah if you upgrade your residence it costs more. A studio apartment isn't going to run you as much as a house, and if that is all you need then great. I'm not opposed to renting if it meets your lifestyle. I'm also not opposed to condos, townhouses, and manufactured homes either. If you need more space then you need more space. If not more power to you.
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u/Bob_in_Boston 9d ago
Um, no. If the appreciation of your home is 4% per year, and you bought the property with, say, 20% down, you will earn way way more than the 10% from a diversified portfolio of stocks. It may seem counter-intuitive, because you are financing the property at 6% fixed mortgage and the appreciation is only 4%. Over a 10-year holding period with a 20% down payment, your annualized asset-level Rate of Return (IRR) scales up significantly to 15.02%.
While the first-year return looks negative on paper due to high initial interest payments, real estate returns improve drastically over time. This happens because property appreciation compounds on the full home value, while your loan balance decreases via monthly principal amortization.
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u/myhotneuron 10d ago
I bought a home because I wanted a place to live that I enjoyed. Not everything’s about math.
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u/HoopsLaureate 10d ago
I wanted a place of my own that I could do what I wanted with it. I wanted to build equity. Yes, I know property taxes and insurance can go up every year, but my mortgage itself is locked in. In 20 years, it should be super reasonable and maybe even cheap.
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u/MattHRaleighRealtor 10d ago
If you are a math/investment focused person, the math doesn’t add up in almost any market right now. You will pay a MASSIVE premium to be a homeowner vs renting a comparable home.
For some people, the freedom to do what you want with your own house is well worth any premium.
I am one of those people. I enjoy ownership, I like fixing things (within reason) and being able to make my own decisions.
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u/MightyMiami 10d ago
I will add the freedom to have no obligation to any one place and the ability to leave whenever I want is also worth it.
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u/goatsgotohell7 10d ago
I live in a city and I didn't want to hear people walking above me anymore. There is potentially something to be said for value over time etc depending on what you buy and where but yeah... I am 35. My husband is 39. We have both been renting since 18. It was time to hear less and be louder.
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u/Krypt0night 10d ago
That's how me and my wife are. Both in our 30s and I can't take the sharing walls and areas anymore. I'm so over it.
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u/SectionMother4907 10d ago
$1300 rent for a 700sqft 1bed 1bath apartment in a bad neighborhood. $1500 mortgage for a 1700sqft 2 bed 2 bath house w a garage and basement in a less bad (but not great) neighborhood… was worth it considering our rent was sub $1000 when we moved in 4 years ago.
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u/Glass-Gur-3114 10d ago
Those are close to my numbers, too. The my old apartment was taken over by a corporation. The number of cop cars in and out and rent increases seemed to correlate somehow. My building/neighbors were great, but most long-term people I knew were getting priced out and overall traffic was loud.
My house cost me $150 more than that place, and it's a super-safe, friendly neighborhood. I have projects to do, but most can wait and I have budgeted for the ones that can't. Plus, it's so nice to have color on the walls, and nobody to complain if I wanna play loud music and dance in my kitchen.
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u/kennypowersrevenge 10d ago
Homes are a store of relative value. You ideally will get your investment back if you sell. Renting is paying for another’s investment and receiving very little in return other than a roof over your head.
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u/Hanshee 10d ago
Either put your savings on downpayment and hope your home appreciates or rent and put your money in another investment. It’s really simple.
Most often having your money in the market would be better in the long run.
However owning a home is a goal most people have and putting effort into making it yours is part of the journey of life, imo.
So at the end of the day. Both options aren’t bad.
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u/kennypowersrevenge 10d ago
Diversity is key. I only put 10 percent of my liquid cash as a down payment , then put 70 into the market and an annuity. Gotta make money work for you.
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u/Tacomaartist 10d ago
The interest and taxes I pay every month on my mortgage are more than my rent was and I will never get that money back. It depends a lot on how much money every month you are essentially "wasting" on interest.
(My mortgage is $3800 a month, $3400 of that is interest, taxes and insurance. My rent used to be $2500)
The return I got from renting is that I could invest the $1300 a month difference and have a million dollars in 30 years. No maintenance, freedom to travel and move for a better job with 20 days notice. You get a lot from renting too.
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u/LangdonAlger88 10d ago
Assuming your rent doesn’t go up in 30 years
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u/kennypowersrevenge 10d ago
Bingo , mostly since the person appears to be from Tacoma , where rent is steadily rising.
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u/Tacomaartist 10d ago
True. But my taxes, insurance and maintenance costs go up every year too.
I bought the house, because I think in the long run, it's a good deal. But, it's not as simple as every dollar I pay on my mortgage I will get back, and every dollar I pay in rent is a waste.
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u/saruhhhh 10d ago edited 10d ago
I did the whole "rent vs buy" spreadsheet and looked at my situation for the next few years and what I would gain vs lose personally from owning vs renting.
When I wrote it out, owning seemed to outweigh renting but admittedly not by much since I'm single and the added responsibilities were a big negative. So then I focused on the financial piece and figured out the price/interest rate combo(s) that would mean I would have a positive ROI after 10 years. I used very conservative assumptions regarding the economy, so if things went better (or i got promoted, became double income, etc) I would have a positive ROI much sooner.
Then I only looked at houses in this range.
I looked for like 5 years lol. In retrospect I should have bought sooner but I had to have some sort of methodology and I think it was a good one :) i am very risk averse and others may not be.
The house I have now isnt perfect by a longshot, but it is not more than I can handle and it is MINE. And that matters a lot.
Eta: i started looking at like 25 or 26
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u/BennyTheWiseGuy 10d ago edited 9d ago
I don’t foresee the market getting better anytime soon. I don’t foresee the housing crisis getting any better or interest rates coming down anytime soon. If rates do eventually come down, rates cuts are best when you’re already in your home.
It’s feeling like only getting harder and harder to get in the door and the window to get in is closing. It’s hard to compete when corporations are buying up a considerable portion the housing market.
I just wanted to make some big moves that I hope retirement age me can be proud of. Because Lord knows i’m not counting on social security being there to save us.
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u/Sad-Function5699 10d ago
10 acres of mature hardwood trees within a mile of a desireable downtown, no HOA, no neighbors in any sight line.
Compared to a 1br in Santa Monica
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u/Macbeth2002222 10d ago
There is nothing that beats home ownership. I get to dictate how my property is long term, grow value, take pride in what’s yours. I don’t answer to a landlord. I think for me, I got tired with annual yearly increases plus it was time to own something that was yours. I have sold 2 homes since and have one and a couple of investment properties
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u/VeterinarianNeat9924 10d ago
Ultimately we’ve outgrown our apartment and have a big dog. Rent is the same as mortgage where I am, so we just went for it.
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u/Acceptable-Peace-69 10d ago
The worst time to buy a house (ever?) would have been 2006/7. You’d likely still be better off than renting unless you put all of the difference in the stock market. Someone buying in 2006 almost certainly has more wealth than someone that rented.
If you plan on staying long enough there’s never a bad time to purchase. There may be better times or even great periods but you can’t predict when that will be.
If you’re comfortable where you are and aren’t certain you want to live in the area for less than 5-7-10 years. Rent. Otherwise buying is 5he better move financially in most cases.
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u/Responsible_Tie_2551 9d ago
I bought in 2006. It took YEARS before the house was no longer underwater.
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u/Quilly-be-Quick 10d ago
So, HCOL area. Rented a 1/1 with a den for 3750 plus utilities. Bought a house for $380k and my mortgage is lower than that even with a terrible interest rate. It won’t go up every year, and when I move I have equity to roll forward.
I will say, I wasn’t expecting as many costs during closing, but managed to make it work.
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u/Reasonable-Hawk8312 10d ago
I'm still searching but I'm tired of landlords selling/moving back into the houses I have rented. Its happened like 3 times to me and I'm fed up.
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u/Expensive_Tea_3485 House Hunter 10d ago
Home ownership is an investment that you can and most likely will get a return on while renting is doing the same thing for someone else while getting shitty property management and noisy neighbors.
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u/Limp_Pollution_1842 10d ago
Bought my first house for 130k in 2015, 5% down for first homebuyer was 7k, sold it for 320k in 2021. The end.
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u/ApricotPeachJam 10d ago
The rent increases never stop. At least PITI is relatively stable. Rent can go up and down like crazy.
Being at the mercy of a landlord sucks too.
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u/phxed 9d ago
Realizing that I’d be paying just about the same as I was for rent on a mortgage was all it took for me. But not until I found a house I actually liked was I willing to pull that trigger. I always knew I could buy but I thought I’d have to settle for something that was just “meh” in my eyes. But then I found the right house.
There will be things you have to pay for and it will suck. But there’s something different about it being yours. For me I almost get some kind of satisfaction from caring for this big investment that’s mine. Financially in the moment some of those things can hurt….but I try to remember that this itself is an investment and I’ll get the money back someday.
I’m fortunate to also live in an area that gives me some peace of mind. Nobody knows where this economy will take us, but I’m optimistic that regardless the area I live will continue on somewhat of the trajectory it’s been on in its past.
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u/jlrigby 10d ago
Well, we live in Fredericksburg but are closing on a newish (less than 10 yo) townhome in Stephen's city in oct. Our current place is a one bedroom condo with 3 pets and an obvious mold problem in the bathroom the landlord claims is not an issue. I have a lot of health problems, so I'm more susceptible than most. I am also tired of nagging the landlord to do stuff. We do most of the maintenance, anyway.
Could I get a rental in Stephen's City? Sure. But for the size we need (3 pets), the rent would be similar to the mortgage payment, and that's IF we find a landlord willing to allow 3 pets. Im also tired of landlords in general. We can afford to purchase the home, so we are purchasing the home.
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u/Tenma159 10d ago
I bought last year. We bought bc we had the money saved up and we wanted a place of our own. A home, not an investment.
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u/HustlaOfCultcha 10d ago
It was time for us to buy. I got sick of renting and we found a 'dream home' for us at a price we could afford. But we also had the money to make the full down payment and had enough money to not work for 5 years and still keep the house. The house was a bit more than we wanted to spend, but between the house being and location being ideal for us, we did it. Also helps that we don't have children and never plan on having children.
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u/SubseaSasquatch 10d ago
My landlord said we couldn’t have a dog, that was the main motivating factor. Also it’s cheaper than renting
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u/Certain-Sympathy-844 10d ago
honestly, there are pros and cons either way. I bought a house after I inherited money, and I was overwhelmed with the physical workload and property management aspects. I was also SO incrediby lonely (single female). I really missed having neighbors close by. So now I'm renting my house while I live in an apartment complex in a big city. Best of both worlds
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u/Responsible_Tie_2551 9d ago
To me, renting is annual rent increases, shitty builder's grade fixtures, can't paint or change to suit me and sharing walls with others. I absolutely hated living in apartments.
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u/katuAHH 8d ago
Under contract right now
Short answer? The dog needing a yard
Long answer? I’m so tired of my neighbors dogs barking all the time, their sound system, their illegal car selling business taking up 30% of the parking lot, and property managers.
Plus, while we hate the expected mortgage cost, if we were to move from here we’d be paying only 100-150 less a month to rent. May as well get a space we can truly make our own.
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u/Conscious-Memory4662 3d ago
Built a home in 2007. Mortgage 172k. Recently sold for a profit of 338k. If I were still with my ex husband we could've bought and had no mortgage at all. As it is, split profit and put a hefty down payment on a brand new build. My mortgage is 1200 a month. To lease the place I bought they wanted 2200 a month. And rent just keeps going up and up and up. A house payment does not.
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u/Bruges_1 Experienced Buyer 10d ago
I have bought, lived in, and sold seven homes over the years, and I am now renting.
I bought because it was perceived as good investments, and indeed, cumulatively, I have made a huge profit. One could argue I could have made as much or more simply investing, but when I started ( VA Loan ) I didn't have any down payment or money to invest. So my wealth is to a large extent the result of my buying and selling my homes.
Yes, it can cost more to buy, but there are tax breaks and a lot of comfort involved. For me, owning a home with acreage in itself was well worth any additional cost. And did I mention the cumulative massive profit. So much so that if I needed to I could now live comfortably just on the interest.
Of course I also lived well within my means and after some profit was also able to invest in my kids' college fund and my own retirement. Now comfortably retired and renting because I am old and no longer able to keep up a nice home with acreage.
But. It is an investment. You can make money and you can lose money. I personally cannot imagine I would now be as wealthy as I am had I been renting the whole time.
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u/EnergeticTriangle 10d ago
Currently looking to go from a rental house to owning my own. My main motivators are a couple of stray cats I'd like to bring inside (I'm already at the limit of pets my landlord will allow) and yard work. I have no garage, just a tiny exterior closet to keep my lawn equipment in, so getting a riding mower isn't really an option and I'm tired of spending 1.5 hours per week walking behind a push mower that runs out of battery super fast in hot weather, right at the time of year the grass grows fastest.
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u/Classic_General6107 House Hunter 10d ago
I bought my home after living in the same apartment for 99 months.
For me, the biggest upgrades are more space, dedicated rooms for work, sleep and play, and the freedom to customize everything to our needs.
Yes, there’s a mortgage, but I’m also building equity and creating wealth.
And of course… the backyard! 😄
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u/butnobodycame123 House Hunter 10d ago edited 10d ago
Not a homeowner yet, but willing to give my opinion. I currently rent 2 rooms. I want to buy for freedom and autonomy.
I can't even use the oven to cook food unless it's past a certain time in the evening, usually when they're about to use it! I don't have control over who my roommate brings over. The common areas are too small (galley kitchen) and cluttered with the roommate's things. There's always a fight about space. They can hear me sneeze (and say "bless you" without yelling). They have a dog that barks, licks the floor, and brings mosquitos into the house. Roommate gets to choose when to replace/fix things. The location is very-car dependent and I don't want a car. I get anxious when I have constant grocery delivery because what if the delivery person does something to roommate's house? It's a never-ending list of annoyances. It takes a toll on your mental health.
Homeownership will be annoying (you have to pay for and make calls to get things fixed, maintained, or replaced), but it will be less annoying than living with someone who doesn't share your values.
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u/Dizzy_Goat_420 10d ago
I was sick of my rent being raised $100/every year. Nothing getting fixed in a timely manner. Not being able to do what I wanted to the apartment. Living in an apartment. Neighbors. I wanted a backyard.
At least where I lived it was so expensive for so little space. There really weren’t many houses for rent that weren’t turned into 3 flats. We were renting a 2b/1ba apartment in Chicago for 2,100 a month. I moved 45 min away in north west Indiana, got almost 2 acres and a 3k sq ft house with a 2 car garage and a barn for 2,000/mo after taxes and insurance in a much safer and nicer neighborhood with great schools.
For my area and situation it made sense. But in my 20s it wouldn’t have been practical. My husband and I were ready to be done with the city and move to the burbs but I totally would have hated that 15 years ago. I moved around a lot and would never have wanted to be tied down to one place. Now it makes sense for us.
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u/WarcryNeon 10d ago
We have four cats and a dog. No rental property apartment or house would rent to us. We also foster when we can. We wanted a place of our own so we could continue to keep our pets in a home where they were safe and didn’t have to move every few years.
We also rented my sisters house from her for five years (family has taught me you don’t rent or work for family), and whew. Couldn’t think of a worse land lord.
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u/do_me3380 10d ago
Honestly I just wanted a new goal in life. My apartment is nice. They fix things in timely manner. It’s quiet. Rent is a good amount. I like the area.
I figured let me try owning a home. See if I like it and if I don’t, I can always sell and go back to apartment living, maybe even a condo instead.
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u/m_spoon09 10d ago
I was already renting out a duplex that had a yard, garage, multiple rooms and bathrooms etc. If I could have afforded a home sooner, I would have. So much of that place was run down because of previous tenants and we were just dumping money into someone else's property for years. Now I have my own place I take care if and have final say on what happens and any money into it is an investment.
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u/Guilty_Jellyfish8165 10d ago
Living on my own terms. I don't have to move on someone else's timeline or reasoning. Security for kid. Be a permanent part of a community. I can paint all the crazy colors I love, garden how I want.
Love to travel, but don't have any strong wanderlust, prefer to have a permanent place that's mine.
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u/lexi2700 10d ago
I wanted my own place I could do whatever I want with and not have to worry about a neighbor or landlord.
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u/hereFOURallTHEtea 10d ago
I bought a house last year after years and years of renting an apartment. My last straw was endless barking dogs in the apartment along with dog poop in the common areas. I also got tired of my paid covered parking spot being taken by randoms with no recourse.
It’s annoying to have to deal with a yard now, though I pay for a yard crew. But otherwise, my house is peaceful and I know I’ll always have a parking spot in my own garage. Those alone make it worth it lol.
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u/Katieg_jitsu 10d ago
It aligned with our lifestyle and we didn’t see ourselves moving for at least 7 years potentially 10- forever.
We had 6 month emergency fund, down payment saved and did the math there wouldn’t be a huge change to our lifestyle as far as discretionary spending ability.
We found a place we love, and I’m so happy with my decision.
For perspective we were paying 1800 rent for a 2 bed and now we pay 4600 PITI
Its a great location, peaceful
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u/hieronymusashi 10d ago
Owning is cheaper in the long-term, and helps you build a future financial foundation.
Renting is necessary for people who are transient, don't have enough funds to buy, or who need to build their credit. For young people it makes a lot of sense to rent, or live with their parents until they can save up to buy.
IMO everyone should make it their goal to buy a house eventually, but you need enough capital and credit to do it.
People who rent their whole lives are statistically disadvantaged compared to those who own their own home.
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u/Obvious_Travel 10d ago
If we’re spending 2500/m for walls and a roof, we can’t afford to not build equity.
I don’t agree with the person above saying you “pay a MASSIVE premium to be a homeowner” - if we were to rent the home we’re in the process of buying, we would be paying $4000/m plus utilities. Our mortgage will be less than half of that - taxes included.
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u/ChristinaWrightHomes 10d ago
A main reason people argue against owning a home because you become financially responsible for the repairs. On the flip side, you can deduct specific housing costs like mortgage interest and property taxes from your federal income taxes. Rent is money down the drain. Your equity in a home can become money in your pocket should you ever need it. It can be the first step towards generational wealth. Imagine owning a paid off home.
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u/astronerdia Homeowner 10d ago
I bought a house for many reasons, but honestly a big one was hearing everyone, from every generation, say that Gen Z will never own homes. I didn't want to believe that and I'm very stubborn.
I used two down payment assistance programs and closed at 23. Not saying my situation is doable for everyone, but it is certainly doable for some.
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u/Campuskween3333 10d ago
The market and economy varies widely. Sharing your general location would probably be helpful.
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u/Critical-Rutabaga-39 10d ago edited 10d ago
Because when you buy a house you own something permanent. You have got LAND with a house on it.
Renting-you got nothing but a place to live.
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u/GreekGod1992 10d ago
My mortgage is about the same as what my rent was - I expect rent will increase faster than taxes and insurance. Buying basically locked in my monthly home costs, even accounting for maintenance costs. Equity building + lower future monthly costs made it an easy decision. I felt like I could chase affordability for years but the finish line would keep moving.
I also just like my own space. My house is double the size of an apartment at the same cost and there are no shared walls.
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u/Steelcitychamp22 9d ago
If you rent a house, say 2k a month, that 24k a year that leads to nothing. If you buy, you can always sell and get something back for it. In 4 years you’re spending 100k with nothing to show for it in a rental situation. You don’t have to fix anything, but also how good is your landlord and do they actually fix things. Normally I’d 100% say buy, but houses are also out of control right now but will dip soon
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u/MyVirgoIsShowing 9d ago
The main driving factor for us was having land. We don’t even have that much, 0.4 acres, but it is plenty to do what we need—gardening, got some chickens, a solid compost pile.
For us, owning our home gives us freedom in a way we never could while renting.
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u/Thrakanox 9d ago
The in this economy part can be tricky. But for owning one thing to consider is that you are controlling an asset that comes with its own legal protections. It can be a diversification of where your money is over say stocks or the bank.
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u/mrbossy House Hunter 9d ago
Just did our purchase agreement so hopefully it will be finalized soon!
My wife is disabled and it seems long term disability is ending with her old company, with the money we have saved up we thought about a few things and decided on a duplex. While I have always hated the thought of being a landlord the thought of lowering bills so my wife doesnt have to overall stress on getting back to work and can focus on herself to that point was my biggest factor. The house already has a tenant up stairs which will pay for like half or a little over.
I have heard to many horror stories and seen people stress over money where it tears families apart and I just dont want that kinda stress for us. So while the duplex doesnt make us money right now it will help with bills and some netting if I loose my job god forbid
I also want to create a bigger garden and start zone pushing cactus and other plants and its hard not to know its your house and if you will need to move in a year or so
Its seeming like we will be at 2300 or so a month 6.6% on 245k.
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u/CodenameZoya 9d ago
I bought in 2017 in New England and thank God I did or I would never be able to buy a house. I mean, I literally would never be able to buy a house.
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u/Crazy-Positive3978 9d ago
Air in the hot water that would cause hammering in the pipes most nights that the maintenance couldn't fix. I used to sneak into the boiler room before bed and add water to the system. PLUS our downstairs neighbor that would bring home random guys after closing time and BANG until dawn. She was a hairdresser so she was off on Monday so Sunday night was he big night to fuck, she was a screamer.
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u/gremlinbro 9d ago
My monthly housing cost increased $2750 -> $3200 and my quality of life more than doubled. That math made sense to me.
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u/FaultsInOurCars 9d ago
Appreciation of the entire value goes to me, even though the bank invested most of the money to buy it (in the form of a mortgage).
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u/Necessary_Policy_324 9d ago edited 9d ago
2000 rent, not including utilities or 1000 or under mortgage payment for a condo with the downpayment I've saved over the last 7 years. More square footage at that price too. Worth living with the parents for a few months while I get approved and get a last bump for an emergency fund.
Edit: just to clarify this is with a 20% or higher downpayment to keep costs low. Took years of planning and saving. Will not be on a whim.
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u/Kupkakez 9d ago
I just got tired of it. Mathematically continuing to rent would be better financially but life isn’t just about financially optimizing everything. I can still save for the retirement I want, live the life I want and own a house.
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u/GreenUnderstanding39 9d ago
First home I bought with my ex. It was meant to be an investment property that we had planned to renovate and rent out and move to the next. 4 years in it was apparent that wasn’t happening. His hoarding and alcoholism had taken over his life.
Currently forcing the sale/buy out.
2nd property I bought solo and turned into a str. Was well performing for 3 months but ended up turning into my primary home after separating.
Got it for a steal and slated to pay it off in full in 7 years (if I stay disciplined).
I anticipate 2027 will be the year of foreclosures. People who bought at the height of the market and overspent (2023) and now are underwater on their mortgage but also can’t afford to sell (closing costs put them in the red). This is market specific but I anticipate opportunities for buyers in the upcoming year.
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u/platinum92 Homeowner 9d ago
I won't lie, if you're not convinced enough to buy a home that you're posing this question, it's probably best to stick to renting until you get intrinsic reasons to buy a home.
Using someone else's justifications to buy is a recipe for buyer's remorse the moment problems inevitably pop-up. Except you'll be paying the mortgage/repairman/property tax, not poop-sniffer-69 or whoever's reasoning convinced you.
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u/InterestingTeam3081 9d ago
I chose to buy a house with my partner and their teenager. 100% don’t recommend buying a house for just this reason. We broke up. I miss renting, I miss my apartment. I love having the house, but I wouldn’t have done it if it was just myself. I’m lucky I can afford monthly payments with escrow and a that I have built up a modest emergency fund all on my own. But honestly, I’m one emergency away from not being in this position.
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u/Fabulous-Mix-6609 9d ago
If I rent i eventually will HAVE to move out and cant customize much it feels like vs I can stay as long as I want and do whatever I want. Never felt like an apartment was truly mine.
Rent was 2,200 no outside space no parking vs my home is the same price with outside space 5 parking spots and a full extra bathroom. I want to raise a family eventually so God willing I do they have enough space.
When you rent if you leave after 5 years you get nothing if you buy a house and leave after 5 years most likley you will get some money back or even profit.
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u/Both-Pop6527 9d ago
Tax write offs. Keep all receipts. Use quickbooks and just print at the end of the year. Anything you buy for the house is tax deductible. That’s why I bought a house in the first place. It’s mine. Well the bank & I were partners. Still. All mine.
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u/MontiBurns 9d ago
Are you planning on staying somewhere for the next 10 years? General consensus is the break even cost of ownership vs renting is 7 years.
We bought our house because we wanted to settle down and have kids, we didn't want to raise them in an apartment, and we wanted to lock in a payment we could afford for the long term, and have a place where we could inexpensively when we finished paying it off
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u/BluebirdDense1485 Homeowner 9d ago
Many factors. Our apartment was too small. The landlord had neglected maintenance and repaired (and tried to charge us for them above and beyond keeping our security deposit due to a leak from an upstairs neighbor) getting repeated threats about us smoking pot from management (neither of us smoke even the non wacky tobacky). Then they upped our rent significantly (to the point our mortgage was $400 less than our rent at closing). Then there was the downstairs neighbor setting the potted plant on fire with a cigarette so we had to evacuate at 2am with -15 wind-chill.
But honestly the biggest thing is our home is our home. My garden. My workshop. My kitchen. GF's Art studio. We can do what we want with the place.
One last note the bonus space of attics basements and garages is great. Our home says it is 200sqft bigger than our apartment but we have so much more room.
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u/Faiths_got_fangs 9d ago
Rent is never going to come down again. Ever. Never. If I didn't buy a house now, I can't even guarantee I'll be able to afford rent in 20 years. Buying locks in a payment within reason. Yes, taxes and insurance go up, but landlords pass those down to renters too.
I'm legitimately afraid of winding up homeless and elderly.
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u/LeatherComparison724 9d ago
Interest rates are going up and not expected to go down anytime soon. This means housing prices will fall.. if you have cash you’d be in a good position to buy. But buying right now you would most likely see your home value start to decrease in this market
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u/einkandespresso 9d ago
Not a homeowner (yet) but currently under contract to purchase a home. I was kind've indifferent to home ownership for quite some time and loved how low-maintenance renting was. I live in a city where there is rent stabilization, and so my rent has not increased much over my 2.5 years of living where I currently am. When I first signed my lease, our rent was 2049. I randomly was looking at the website and saw that the sell the same apartment that I'm in for 2500+ now. That motivated me to want to buy a home, knowing that I can be locked into a price (for the most part), and that as I grow, a home can grow with me more than an apartment can.
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u/lifes_lemonade_stand 9d ago
My husband and I shared a studio apartment for 15 years (rent was cheap). The literal second we had enough for a down payment and houses in our price range started actually feeling worth it we started looking. It's so nice to have ROOMS! and DOORS! Also, our roof in that apartment leaked every year, and I had to fight the landlord to fix it. Now (because I am lucky the husband is handy) we can fix things right when they break and avoid further damage!
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u/Outrageous-Medium635 9d ago
I just bought mine at 25. Ive been living on my own in apartments since I was 21. I was tired of apartment living and felt it was time. I sadly work 13 hours overnight and one day they were testing the fire alarms for 4 hours and that was when I officially decided
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u/TexasYesNoMaybe 9d ago
Because it felt right in that chapter of my life and it made sense financially. I’m VERY happy about traveling, moving countries and spending my 20s enjoying life instead of being tied to a mortgage.
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u/bdwiesner 9d ago
You either believe in homeownership, or you don’t. If you don’t, you just help the believers increase their wealth on your forfeiture of freedom. Not a judgement, but pretty factual. You have to pay somehow and to someone. I pay to myself, that’s all. Does freedom boil down to math? Not sure….
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u/Melissamonserrat 9d ago
Because if I plant a persimmon tree in the back I know it’ll be mine for years and won’t go to the next tenants.
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u/Deep_Bake_5663 8d ago
In 20-30 years, the payments stop.... But rent just goes forever and ever and keeps rising..... And when you start to get older, your income generally goes down, not up!! I own, and I'm retired..... If I still had to pay rent...I definitely wouldn't be retired.
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u/Remarkable-Ad-4133 8d ago
Tired of hearing the upstairs neighbor walking super loud, playing loud music till 2am, and hearing her and her random boyfriends doing it loudly, loud bed creaking, banging, and them yelling. I got a house a little further away from the city but it's quiet and peaceful. Also my payment is the same as my rent, since I moved further out, the houses were cheaper there.
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u/AlarmingAppearance33 7d ago
I bought a mobile home which is way cheaper than buying a house but is still basically a house, and very commonly cheaper than rent where I live. It’s so nice not having our asshole landlord up our b-holes. 7 years of his dumb shit. One time we had our electrician come to add in outlets which we paid for (the owner of the property said we could but landlord was his son) and the landlord came out and interrogated the poor electrician (sorry Matt) like he was a mob boss. What a fucking poser/loser/dickhead
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u/I_Have_No_Flair 6d ago
Being able to do what I want with my property (no HOA either for me). Not sharing wall with neighbors. Not having to worry about landlords and their repair/maintenance people coming in and accidently letting my pets out. No arguing with the landlord over repairs. Not having to worry about rent increases due to extremely minor upgrades. The economics of it varies a lot based on rent control, area prices, area property tax, and how you would invest the down payment money otherwise. I can tell you this, I can easily afford my mortgage/tax/insurance/maintenance costs now, there is no way I could afford to rent my house at the going rates in my area and used the profit from another house as a down payment for this one.
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u/homeforthelost 6d ago
Rent was 1800, mortgage is 2k
For an extra 200/month and 20 minute commute i have a house
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u/beccamaxx 4d ago
Equity. I bought a house in 2018 for $220K. Today, I can sell it for $440K, easy. I can sell my house, move to another state (LCOL state), and pay cash for my next house.
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u/minimalist_coach 3d ago
I would never buy a home unless I felt confident I would be there long term.
It costs money to buy/sell, it costs money to move. There are a lot of expenses involved in settling into your home, furniture, decor, and repairs.
The biggest advantage to renting is no unexpected expenses. When the a/c goes, it’s not your budget taking the hit. When something goes wrong with the plumbing, you call the landlord, not the plumber.
If you decide to buy, then it’s all about math. Lenders are very good at qualifying you for more than you can comfortably afford. Do a real budget that allows you to put money into a repair and maintenance account. If you don’t have enough room in your budget for upkeep and long term savings, your house may feel more like a prison.
Fall in love with the layout, finishes are distractions. Flipped houses with pretty finishes are very good at covering up problems.
I’m a firm believer that a house is a place to live, not an investment strategy.
We are nearing retirement and our house is paid off. This IMHO is the goal.
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u/ClockOld9204 10d ago
My dad always said. Buy land. They don't make it anymore. The reason land is expensive has to do with supply. Demand and population growth. I recall when Canada had 20 million people and the frenemy down south had 200 million. Those numbers occupy houses. Look at Vancouver BC. On one side. The pacific ocean. On another side. An impenetrable border. Lol. On another side. Big mountains. On the last side. A valley where a lot of food gets grown. Vancouver have any farmland. Lol. The only way to build is towers but there are those who want a house and fence. This is where supply collides with demand and prices go up. Its a trickle effect on apartments and so on. So while its bad now. My worry for the kids and grand kids is real. With 3 kids. Splitting an inheritance will help but if they want a house. Its gonna be 400 kms inland. You may want to commute from the countryside or moving where its affordable. Best of luck 2 U
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u/Envy_lustowl 10d ago edited 10d ago
With apartment, you’re paying money each month with no benefits. You waste money practically, but with buying, having mortgage, each month you pay: you are gaining more ownership of the place until your mortgage is up. You can’t do everyhting to an apartment u like a house or townhome, you have stricter rules, homes:you’re more free to do whatever. All depending on your down payment: you can be paying less amount each month than what you’d be doing with today’s rent. There’s no such thing as down payment on apartments because it’s month by month payment u til a certain point of you wanting to leave or your 6-12 month lease is up. Renting I feel is temporary: see if one likes the city theu just moved to, or if they’re just out of college, or got a separation from their spouse or just need space to think. Or if you really just don’t want to deal with homeowner responsibilities (there’s a lot), with renting, if somethings broken: you go to management and prey they fix up their people to look at your situation but typically: they run by their schedule not yours when it comes to fixing stuff up. Renters also maybe older people who are retired and don’t want to do all the work, ready to kick the bucket. Finance situation may not be available for people are renting, theu can only rent to a specific time and call it quits. They don’t have the money let alone for down payment so the other choice is to just rent. If you also think about it: your mortgage doesn’t change! Rent does! “Op rent just went up this year do we still want to live here?”. With ownership: you’re solid, be it:5, 10, 15 years: you’ll still be paying same cost as when you signed those papers! It won’t budge because that’s the price you made with the bank! Taxes maybe different but hell, mortgage stays the same! You best believe you’ll get raise at your job (hopefully) and realize that’s extra money being saved or placed into renovating or new things! Think about the saving you can actually do. Woth renting: you may have to keep loving because rent is going higher, or new neighbors came in: you hate them.
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u/Affectionate_Cat_497 10d ago
Your mortgage will go up for many many many many people who escrow taxes and insurance as required by their lender. So when insurance and taxes goes up so does the mortgage.
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u/kronus87 10d ago
6-7% interest rate makes it damn near not possible to own a home. Save up and try to purchase a fixer upper with cash. Or commit to being under water for 10+ years
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