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I think starting in the late 50s many of us are done with the home maintenance and yard work, and there's nothing wrong with taking a break. Life is more than a $ balance sheet.
We took a forced break, couldn't find a house. Renting has been the PITS!
Water was shut off TWICE due to old tenant not paying the bill ($500), we paid about $200 the first time, the water lady didn't tell me there was still a balance, so it got shut off a 2nd time. That time the landlord sent us a nasty text saying we didn't pay our bill, to which I found out it was the tenant again. We're going to take him to small claims court because we gave him a years rent up front. Landlord has ignore our requesting to be reimbursed.
The toilet on 1st floor backed up twice due to roots in the discharge line. The first day it went all over a few times, we didn't know what was going on. Second time was Monday, my daughter happened to be here so I stopped my laundry. Plumber got here late in the day. Can't use water when it happens.
Had a leak in one shower when we first moved in, the water fell into a light in the dining room. Good thing we were home before it started shorting out. The globe would have held a gallon or so of water.
Give me my own house any day. I'm so over renting, living out of boxes. We only unpacked what was really needed for a year. I miss my music CD's.
... One positive is having learned how little space i need to be comfortable.
My housing situation much resembles yours, though the personal lesson was the opposite: it took a contraction in square-footage, to realize how much I miss the formerly expansive (relatively speaking) square-footage. There's a smattering of discomfort in having to step/crawl/climb over piles/stacks/towers of books.
Even so, we're buoyed by a sense of living in transitional times, where the heady sellers' market definitely looks to be abating. Being today a renter potentially looking to buy, gives much more confidence, than it did a year ago. There's ample reason to feel even more such confidence and optimism, in the months ahead!
We took a forced break, couldn't find a house. Renting has been the PITS!
Water was shut off TWICE due to old tenant not paying the bill ($500), we paid about $200 the first time, the water lady didn't tell me there was still a balance, so it got shut off a 2nd time. That time the landlord sent us a nasty text saying we didn't pay our bill, to which I found out it was the tenant again. We're going to take him to small claims court because we gave him a years rent up front. Landlord has ignore our requesting to be reimbursed.
The toilet on 1st floor backed up twice due to roots in the discharge line. The first day it went all over a few times, we didn't know what was going on. Second time was Monday, my daughter happened to be here so I stopped my laundry. Plumber got here late in the day. Can't use water when it happens.
Had a leak in one shower when we first moved in, the water fell into a light in the dining room. Good thing we were home before it started shorting out. The globe would have held a gallon or so of water.
Give me my own house any day. I'm so over renting, living out of boxes. We only unpacked what was really needed for a year. I miss my music CD's.
(These words are NOT for you, Roselvr.)
Here goes:
Yikes, the thing I hear most regarding those whom prefer to rent: "If anything breaks, I just call the mgmt, and they take care of it."
Except "mgmt" will fix a problem using the cheapest/low quality methods available, that are legal.
A home owner, on the other hand, will likely spend a few extra $, on getting exactly what they wanted.
So, it makes sense to strive to become an owner, instead of a renter.
Roselvr~ Can you get a "boombox" to play your CD's? Maybe a pawn shop?
Yikes, the thing I hear most regarding those whom prefer to rent: "If anything breaks, I just call the mgmt, and they take care of it."
Except "mgmt" will fix a problem using the cheapest/low quality methods available, that are legal.
A home owner, on the other hand, will likely spend a few extra $, on getting exactly what they wanted.
So, it makes sense to strive to become an owner, instead of a renter. ...
You're presuming that the resident actually cares, or has some emotional investment in the quality of furnishings, plumbing, finishes, or whatever else. As a tenant, I absolutely don't care if the roof fails in a ferocious storm, resulting in water penetration, mold or whatever else. If the landlord/owner doesn't fix the problem, it's his loss - not mine. Whenever I hear water dripping from the sides of the roof, instead of going down the gutters and downspouts, inwardly I rejoice - remembering what a travesty and headache such a thing had caused me, as a former owner!
You're presuming that the resident actually cares, or has some emotional investment in the quality of furnishings, plumbing, finishes, or whatever else. As a tenant, I absolutely don't care if the roof fails in a ferocious storm, resulting in water penetration, mold or whatever else. If the landlord/owner doesn't fix the problem, it's his loss - not mine. Whenever I hear water dripping from the sides of the roof, instead of going down the gutters and downspouts, inwardly I rejoice - remembering what a travesty and headache such a thing had caused me, as a former owner!
So...do folks here feel that renting for two to even three years is still a wash (or possibly a better return) vs buying? Let me give some background to my situation and prices, etc.
I'm 58, two college age 'kids'.
I'm not enamored with my job nor my location and would love to move out of state. Soon-ish.
2 Bedroom Houses/Townhouses here are ~$390K (plus needed improvements) while rents for similar spaces are ~$2k per month (very nice apartments, pet friendly too!).
I do not own any other real estate.
My heart says take a break from renovating, shoveling, mowing and rent the nice place for $2k for maybe two years and see what happens. My financial side says Never Rent, and I can't be out of the real estate market this long, and prices will not come down.
Most math says the breakeven point is about 3 years.
What's your advice please?
Thanks!!!
In two years, you'll spend $48k on rent. Can you live with that? In 2005, I rented for two years after a cross-country move while waiting to learn if it was going to be a permanent relocation. I invested the profits from the sale of a previous house, which paid the rent and then some. I don't regret the decision because it allowed time for our family to determine our next step, and I knew exactly why it was necessary. Would I do it again in the hopes that housing prices will fall? No. Absolutely not.
If you plan on moving in less than 5 years you should rent.
1)housing in a typical appreciating environment does not add as much equity as people think early on. Your payments hardly touch principal at the beginning and any equity you do gain from appreciation is offset by selling costs and realtor fees. Don't forget the closing costs you'll have to pay when you buy that you'll need to offset to make the purchase worth it as well.
2)You'll likely have to replace something in that time frame that you wont be able to get the $ back on or get full use from (HVAC, refrigerator, washer dryer, hotwater heater, etc.)
3)If you buy and the market does correct and you find yourself in an upside down mortgage you'll be stuck there, and you've already expressed your desire to leave.
So I say rent, especially with all the recession talks and super high home prices and interest rates right now
Those are good reasonings and yes the typical break even is under 3 years given today's incredibly high rents which are basically equal to a mortgage payment given my low price point of ~ $400K.
Also, investing the cash that would've been used for the Mortgage Deposit is not looking very safe or promising.
I'm literally in analysis paralysis with this still to this day but really appreciate and enjoy all of these responses.
Today's NY Times has an article with what I think is a fairly sophisticated rent vs buy calculator.
This gift link will get you past the paywall and into the NY Times to read the article and use the new tool. This link will work for 30 days and I can renew it if I get a DM requesting renewal. If you go to the article, be sure to look at the Reader Comments, select "Reader Picks" for the best comments, all of which are moderated by the NY Times before posting IOT weed out the trolls.
Excerpts:
Quote:
It is the biggest financial decision for many younger adults: Should I rent a home or buy one? The decision is especially difficult these days, with both interest rates and rents having risen in the past few years.
To help people understand the trade-offs, The Times has just relaunched its popular rent-versus-buy calculator. Even if you already own your home — or are a committed renter — you may enjoy playing with the calculator and learning a few things about the real estate market. I did.
The calculator, which The Times’s Upshot section built, has been updated in several important ways, including to take into account the 2017 tax law that affected the mortgage-interest deduction.
Ultimately, the calculator can’t tell you whether you should rent or buy. That decision depends on the future paths of home prices and rents, which are unknowable. It also depends on your life stage — a factor that too many people fail to consider when making this decision. If you know you will move again a few years from now, for instance, buying is almost certainly a mistake.
Key topics in the article:
Quote:
1. It’s OK to rent
2. An overrated deduction
3. The break-even rate
4. When to buy
In my case, the calculator says I'd save $1.8M over 18 years if I rent instead of own a home. Hmmm.... I'm not so sure about that....
Do we have CFPs reading this who might hazard an opinion for us?
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Last edited by Mike from back east; Today at 12:56 PM..
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but really appreciate and enjoy all of these responses. 
