Is home ownership a huge responsibility with stuff breaking all the time and endless taxes?

[Joes Place]

Not really, unless you are renting a single family home. If you are renting in a multi-tenant building, a lot of those costs get spread over many renters.

How'd that work out for the condo owners in FL, who couldn't afford fixes on their "pool" and parking garage.
So, they didn't fix any of it, until the whole building crashed into the ground?

Doesn't matter if it is single family, or multi-unit. There are upkeep costs; bigger the building is, the higher those costs will be.

 

[Hawgk]

Good points.

I also like the stock market.

I just crunched some numbers and had I invested the down payment and the difference in my rent vs house payment (monthly) beginning at the time I bought my house in 2018, my total return would fall in the middle of the range of total return I’d expect if I were to sell my house today.

But my house is nicer and roomier than the apartment I was renting, which was actually a pretty nice apartment. Definitely could’ve found cheaper.

 

[jamesvanderwulf]

My landlord is very good. He takes care of everything like the leaking roof, hot water heater that broke, lawn care, broke toilet etc., etc. All the furniture is his except my TV. I have a monthly cleaning service he pays for.

Most landlords are salt of the earth types. If you take care of your unit, don't try to smuggle a woodwork chewing dog, or carpet pissing cat, don't drag the cops to the unit on a monthly basis, your landlord will treat you like his favorite son, never raise your rent and invite you over for tea and crumpets at Christmas time...

 

[auntie_fah]

Ive owned, now rent post divorce.
If i was able to go back in my esrly 20s and do it all over again, id go for simplicity.

Id go for a container home or convert a bus or something and downsize my possessions.

Something to maybe consider when i am no longer tied down in Iowa in a couple years.

 

[Tenacious E]

How'd that work out for the condo owners in FL, who couldn't afford fixes on their "pool" and parking garage.
So, they didn't fix any of it, until the whole building crashed into the ground?

Doesn't matter if it is single family, or multi-unit. There are upkeep costs; bigger the building is, the higher those costs will be.

The point is that the math isn’t clean, and the more ways to split it the less it costs per capita. New roof? Assuming there is mor than one story it is cheaper. Instead of a 20x40 (800 sf) pool in your backyard, it is 40 x 100 (4,000 sf). If there are 40 tenants in a building that is only 100 sf per family rather than 800. It goes on and on.

 

[jamesvanderwulf]

Id go for a container home or convert a bus or something and downsize my possessions.

Go for it!

 

[Tenacious E]

Go for it!

Just don’t drive under a bridge!

 

[Joes Place]

The point is that the math isn’t clean, and the more ways to split it the less it costs per capital. New roof? Assuming there is mor than one story it is cheaper. Instead of a 20x40 (800 sf) pool in your backyard, it is 40 x 100 (4,000 sf). If there are 40 tenants in a building that is only 100 sf per family rather than 800. It goes on and on.

The point is that multi-unit, multi-story buildings have more infrastructure than a typical house does.
Roof. Exit stairs. Elevator. Etc. (elevator, alone, is probably a $1M or more fix/upgrade)

And for many people, living in a stand-alone house is preferred to a "condo/apartment" sized setup.

 

[Joes Place]

Go for it!

I'd be all-in on that just for the industrial-sized horn to honk at other people....

 

[Tenacious E]

The point is that multi-unit, multi-story buildings have more infrastructure than a typical house does.
Roof. Exit stairs. Elevator. Etc. (elevator, alone, is probably a $1M or more fix/upgrade)

And for many people, living in a stand-alone house is preferred to a "condo/apartment" sized setup.

Again, the point is the math isn’t that clean. It can be cheaper in many cases to rent long term. But, in some cases it is not.

 

[Joes Place]

Again, the point is the math isn’t that clean. It can be cheaper in many cases to rent long term. But, in some cases it is not.

Sure. It "can" be.

But what you rent often isn't as nice as an actual house.
I live in a neighborhood with a central park area; huge draw for folks with kids and dogs. One resident has been running summer Cornhole tournaments here for over a decade among neighbors.

Enjoy your multi-story apartment complex where your car can get broken into or keyed any day of the week. All my stuff is in a 3-bay garage.

 

[BrianNole777]

I have a neighbor drama situation.

Him and his family moved in 2019. They've had several domestic violence issues the past year and are getting a divorce.

He also lit his kitchen on fire by accident in September.

Yikes.

 

[artradley]

Ive owned, now rent post divorce.
If i was able to go back in my esrly 20s and do it all over again, id go for simplicity.

Id go for a container home or convert a bus or something and downsize my possessions.

Something to maybe consider when i am no longer tied down in Iowa in a couple years.

The best economic move you could have made is not get married - or put up with her crap and not got divorced.

 

[seminole97]

Do you have to pay property taxes for life?

You’re paying your landlord’s property taxes on his property.

 

[Hawkeyenuts66]

It's much cheaper and easier overall.

No maintenance.

Much cheaper? What are you renting, a one room efficiency?

 

[BrianNole777]

Much cheaper? What are you renting, a one room efficiency?

It's a 1,200 square foot "garden style" apartment.

 

[BrianNole777]

You’re paying your landlord’s property taxes on his property.

Yeah. It's probably cheaper overall though.

 

[millah_22]

It's a 1,200 square foot "garden style" apartment.

what is a garden style apartment?

 

[Joes Place]

what is a garden style apartment?

"Tent in homeowner's back yard"

 

[BrianNole777]

what is a garden style apartment?

It's a realtor's word for a basement. 😀

 

[millah_22]

It's a realtor's word for a basement. 😀

oh, garden level.

 

[BrianNole777]

oh, garden level.

Whoops.

 

[IsaacHarrison]

The fact that someone else can make money on you paying them rent should tell you if it is worth it. Also, alot depends on where you live. I bought our current house in phoenix in 2017. Its currently worth double what we paid. Was more about a year ago. In contrast, my in laws are in Ohio and their house has gone up about 10% in the last 5 years. That is going to be a big problem for them. Why? Material cost to remodel has doubled in that same time frame. They priced out windows and it was 30% of the value of their home. That aint gonna work if you want to maintain the looks of the homes int he neighborhood.

 

[auntie_fah]

Go for it!

Thinking more

Or

 

[Tenacious E]

Sure. It "can" be.

But what you rent often isn't as nice as an actual house.
I live in a neighborhood with a central park area; huge draw for folks with kids and dogs. One resident has been running summer Cornhole tournaments here for over a decade among neighbors.

Enjoy your multi-story apartment complex where your car can get broken into or keyed any day of the week. All my stuff is in a 3-bay garage.

Well, to be clear, I have lived in my own house for 20 years. While there are junky apartments, there are apartments that are not.

 

[Joes Place]

The fact that someone else can make money on you paying them rent should tell you if it is worth it. Also, alot depends on where you live. I bought our current house in phoenix in 2017. Its currently worth double what we paid. Was more about a year ago. In contrast, my in laws are in Ohio and their house has gone up about 10% in the last 5 years. That is going to be a big problem for them. Why? Material cost to remodel has doubled in that same time frame. They priced out windows and it was 30% of the value of their home. That aint gonna work if you want to maintain the looks of the homes int he neighborhood.

Buying makes sense if you're in an area you want to stay in for the long haul. And more fundamentally if you can get a low interest rate on your loan.

If you work in an industry where you might move around a lot, then renting makes more sense than paying a realtor 5-7% of your home's sale value every time you move. Or, if you just like moving to different parts of the country and have a mobile/transferrable job/career.

But, if you plan to remain in the same area for many years, you'll likely end up ahead purchasing a decent place in a desirable location vs renting. Especially if you lock in a 15 or 30 yr fixed rate mortgage.

 

[funksouljon]

A realtor I know said condos don't go up much in value and the fees increase often.

What do you think?

Im not sure as I have zero interest in condos. Until I am in my 70s, I don't plan on that lifestyle. But a realtor might have a better pulse.

Same with condos?

Historically some of the MOST regulated by HOAs.

 

[Tenacious E]

Thinking more

Or

Cool for a road trip but full time? I’d go crazy.

 

[auntie_fah]

Cool for a road trip but full time? I’d go crazy.

I can see it. Youd definitely have to examine what possessions you can get rid of and if its worth it to live like that. Although i think this country would be better off to re-examine their relationship with consumerism and the “more more more” society. I wish id figured it out 25 yrs ago

If i didnt want to settle down in one place, that would be the way id want to go.

If i wanted to be settled in one location i would go container home

 

[markfromj]

I think the mortgage is the worst. It takes forever of paying just the minimum payment, to make any headway on the equity. On a $1000 payment (example) you will put like $10 towards the equity on the first payment. Banks are really ripping off the people.

Lol. Your principle is high early, so of course most of the payment goes to interest. JFC!

 

[Tenacious E]

I can see it. Youd definitely have to examine what possessions you can get rid of and if its worth it to live like that. Although i think this country would be better off to re-examine their relationship with consumerism and the “more more more” society. I wish id figured it out 25 yrs ago

If i didnt want to settle down in one place, that would be the way id want to go.

If i wanted to be settled in one location i would go container home

I respect minimalists and adventurists. But… I am not one. I like my stuff and space. I like hosting dinners. I like having a pool and hot tub. I like having different rooms suited to different activities. I like watching sports on a massive tv. I would do without that stuff if I had to but I don’t.

 

[auntie_fah]

I respect minimalists and adventurists. But… I am not one. I like my stuff and space. I like hosting dinners. I like having a pool and hot tub. I like having different rooms suited to different activities. I like watching sports on a massive tv. I would do without that stuff if I had to but I don’t.

Understandable.

I like my stuff too (although i just have one tv), but my space has too much of it currently and i spend too much on stuff.

Ive pretty good at giving things up or getting rid of stuff. Im gearing up for a move in a couple years so i think a lot of my things are going to be sold, used until they are worn out or donated.

 

[Tenacious E]

Understandable.

I like my stuff too (although i just have one tv), but my space has too much of it currently and i spend too much on stuff.

Ive pretty good at giving things up or getting rid of stuff. Im gearing up for a move in a couple years so i think a lot of my things are going to be sold, used until they are worn out or donated.

No idea what your circumstances are but it sounds like maybe you are alone. If I was alone I would live a different life. Perhaps one of adventure rather than only an annual vacay with the fam. But, I don’t.

 

[onlyTheObvious]

I can see it. Youd definitely have to examine what possessions you can get rid of and if its worth it to live like that. Although i think this country would be better off to re-examine their relationship with consumerism and the “more more more” society. I wish id figured it out 25 yrs ago

If i didnt want to settle down in one place, that would be the way id want to go.

If i wanted to be settled in one location i would go container home

If I was single and could find a spot that wasn’t a trailer park this would be perfect for me. I have zero desire for material things. It’s just junk that takes up space.

 

[auntie_fah]

No idea what your circumstances are but it sounds like maybe you are alone. If I was alone I would live a different life. Perhaps one of adventure rather than only an annual vacay with the fam. But, I don’t.

Have a kid in HS. When he heads off to college, i will be changing my environment.

 

[SeaPA]

What the hell are you all doing that you have so much stuff breaking all the time?

We have been in our home for over 30 years. We have replaced the AC twice, the water heater once, the roof twice (the most recent was not of necessity, wife just wanted a new look and a new roof cost way less than a divorce attorney).
We've replace the major appliances a couple of times - think it is the 3rd fridge (one of the others is in the garage as my beer fridge), 2nd stove.
Things break down every now and then but if you buy decent quality it lasts a long time.

 

[Tenacious E]

What the hell are you all doing that you have so much stuff breaking all the time?

We have been in our home for over 30 years. We have replaced the AC twice, the water heater once, the roof twice (the most recent was not of necessity, wife just wanted a new look and a new roof cost way less than a divorce attorney).
We've replace the major appliances a couple of times - think it is the 3rd fridge (one of the others is in the garage as my beer fridge), 2nd stove.
Things break down every now and then but if you buy decent quality it lasts a long time.

That’s 16k in ACs, 1k for the water heater, roof at least 30k, all major appliances another 20k to 30k. We’re up to 75k to 85k and didn’t talk about any remodeling, the windows, lawn and snow implements, new flooring, the furnace, a fence, finishing the basement, etc.

 

[wjr1818]

I think the mortgage is the worst. It takes forever of paying just the minimum payment, to make any headway on the equity. On a $1000 payment (example) you will put like $10 towards the equity on the first payment. Banks are really ripping off the people.

But the landlord will take what they would be paying for that monthly mortgage plus taxes and insurance and add on 20%+ to the renter. Unless it is paid off which is not the case 90% of the time. If you can afford the down payment, home equity makes the most sense unless you're planning to move within a year or two.

 

[Hawkeyenuts66]

It's a 1,200 square foot "garden style" apartment.

How much does it cost to live in someone's basement?

 

[Joes Place]

How much does it cost to live in someone's basement?

Important context: With, or without the Gimp Suit discount?