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Reading the local article how the average family needs to make $100 Thousand a year to purchase a home in our area. With down-payments ranging from $50 thousand or more I am okay with renting.
Any renters love renting??? Be great if more rent to own took off across the US. You live at a place for 5 years then own it I be game.
We are contemplating renting a house next year or year after for almost $2,100 average home mortgage payment in our area. Then looking to buy in 5 more years is the goal.
Anyone enjoy renting? Starting to like not having to own a property have the ability to move around more in the same area to different properties till finding the right one.
Bought my first home in 1968. Have bought and sold seven or eight homes along the way. Loved owning. Aways paid off the mortgage early and then focused on savings. Also made a huge cumulative profit. Was happy. Always thought "renting" would not suit me.
Then six months ago I had an epiphany. Decided I was tired of all the maintenance. Sold out for more than twice what I paid. Rented a nice 3-bedroom apartment for $1900 a month. My monthly expenses are much less. And my interest income from savings improved by $36,000 a year. Now I am even more happy. Don't plan to buy again.
But. It is nice just knowing I can buy a very nice home for cash if I ever wanted to.
Location: Danbury CT covering all of Fairfield County
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One of my clients is paying about $3400/month in rent for 2 bedroom Avalon type complex in a very affulent town in CT. Any property to have them buy will be about $850,000 minimum, and with their 10-15% down payment and taxes, it would likely cost them $5000 + a month. But they only want to be in that town for schools & commute, so they are kind of stuck between a rock & a hard place.
There are pros and cons to both renting and owning. IMO, do what best suits your family and your lifestyle. Keep in mind that you don't need to be on someone else's timeline. If you decide that owning suits best, it can still be done 5 years from now, 10 years from now.
For new homebuyers in particular, it's not the monthly mortgage payment that presents a stumbling block but the amount of cash needed to close the sale (without zeroing out your savings).
There are pros and cons to both renting and owning. IMO, do what best suits your family and your lifestyle. Keep in mind that you don't need to be on someone else's timeline. If you decide that owning suits best, it can still be done 5 years from now, 10 years from now.
For new homebuyers in particular, it's not the monthly mortgage payment that presents a stumbling block but the amount of cash needed to close the sale (without zeroing out your savings).
The last part is the truth!!! Be great if more rent to own options out there.
Be great if more rent to own took off across the US. You live at a place for 5 years then own it I be game.........
Sorry. You are not going to pay off a rental and own it in 5 years and when you rent to own, only a small portion of the rent goes towards the purchase price. Most of the rent goes for rent.
By far, the majority of people who do a rent-to-own, can not carry through and they lose the house within a couple of years, all their down payment money gone.
Anyone who wants to try rent-to-own had best be very clear what the terms are and what the money is doing and how much of what they pay is going towards paying off the house.
Sorry. You are not going to pay off a rental and own it in 5 years and when you rent to own, only a small portion of the rent goes towards the purchase price. Most of the rent goes for rent.
By far, the majority of people who do a rent-to-own, can not carry through and they lose the house within a couple of years, all their down payment money gone.
Anyone who wants to try rent-to-own had best be very clear what the terms are and what the money is doing and how much of what they pay is going towards paying off the house.
Very true.
In some sense, buying a house is rent-to-own, as in the beginning only a small amount of the house payment reduces the principal. But buying also provides some tax benefits as mortgage interest and real estate taxes are usually deductible.
The problem is that it takes most people 30 years to pay off a 30-year mortgage. And much of those payments are just interest. Scary to see just how much of 30-years-worth-of-payments is interest.
On the other hand, if the mortgage payment is not much different than what you would pay for rent, then at least some of your mortgage payment is going toward actually owning the property. Which is great if you plan to stay in the home long enough to make it work. Real estate markets can change a lot in 10 years. I have made huge profits on some homes, and I have also lost money on some homes.
It takes discipline ( and money ) to pay off a mortgage in 10 years. Have done that several times, by making double-payments. The trick is to live well within your means. If you are buying the biggest and best you can afford, then you better hope the market improves by the time you need to sell.
Bought my first home in 1968. Have bought and sold seven or eight homes along the way. Loved owning. Aways paid off the mortgage early and then focused on savings. Also made a huge cumulative profit. Was happy. Always thought "renting" would not suit me.
Then six months ago I had an epiphany. Decided I was tired of all the maintenance. Sold out for more than twice what I paid. Rented a nice 3-bedroom apartment for $1900 a month. My monthly expenses are much less. And my interest income from savings improved by $36,000 a year. Now I am even more happy. Don't plan to buy again.
But. It is nice just knowing I can buy a very nice home for cash if I ever wanted to.
Just moved our parents to an apartment which my dad swore would never happen. He also didn't plan to live to 91. Such is life.
I'm on Oahu, so the average family needs well over $100k in order to afford a standard single family home, which are still north of $1 million.
That said, we do know some people who have bought, both single family homes and condos, over the past few months.
We own our condo here, bought back in 2016. So we have a sub-3% interest rate. We would never buy here today as things are too expensive, even though we could technically comfortably afford to do so; it just wouldn't seem like a good investment at this point for us.
When we bought our place back in 2016, the average mortgage for our place (to include monthly condo fees) compared to renting a comparable unit was within $1k of each other, with buying being the more expensive option. Today, we're talking about double that for folks buying today. And single family homes (buying vs. renting) are even more lopsided on a family's budget.
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