Welcome To House Ownership

Yes, the cost can be outrageous,it's what keeps me self employed. As for me paying for that, no more, over the years I have owned dozens of residential properties, now I own none and pay rent. A phone call and every thing that needs to, gets fixed and I don't have to pay for anything, often I get payed to fix it. :-)

Btw Lisa, I wanted a bus like to make an art gallery out od it.

Lisa,

A few years ago a friend of mine from way back moved into my condo association. His wife had died only a year earlier. He sold and bought near me. Not on purpose to be near me.

I over heard him at the club house bar four months ago discussing his costs of condo v. home ownership. Hands down cheaper in the condo. Even after the assessment we just voted on for $100 per month extra for the next four years.

Dave

Lisa, it is for that reason I rent a duplex. I have a good deal here, rent even lower than most decent two-bedroom apartments and I don't have to take care of the yard except to keep the flower beds reasonably weed free. When people say they can buy for less than rent I believe in most cases they only looking at the mortgage and are not taking into account the total cost of home ownership. The only thing lacking here is a garage but for the money I'm saving I'll live without one.

I'm reminded of the Tom Hanks movie The Money Pit, Lol!

Lisa - One of the happiest days of my adult life was selling my townhouse. I felt free for the first time in years. Don't like the new neighbors? Leave! Something breaks down call someone else who has to worry over it.

At the moment, though, with my Mom who was recently widowed and now that my Dad is gone, I feel the creeping despair of pseudo-home-ownership again. Agggh! It really is always something.

Mark

PS. In the end, it really comes down to your temperament. It's not for me. My mom likes having a place she knows is hers. But miss a few tax bills and see if it's really yours or not.

On second thought, real estate can be a great investement, I made a lot of money over the years because of buying the right properties. If I would have held on to them instead of flipping them to pay for my fast life style I would be earning over 30K per month and that was with just 15 condos which represented only a fraction of what went through my hands. To be young and unwise can be very costly, well, that and divorce 2x.

Lisa,
Nothing makes me feel more grounded and stable than knowing the house in which I live is MY home...to take care of, hopefully continue investing in and have a nice profit when I no longer care to live on my own. It was a great investment and the upkeep/improvements are proof of my commitment to maximizing this investment for my future. The value has steadily increased as my mortgage balance dwindles.
The interest is a write off, so Uncle Sam helps me as well.

I had my fill of rentals and landlords and neighbors in multi unit buildings.
No thanks.

We never really own anything. It's kind of an illusion. The bank has ownership rights "in a way". One can argue and say you pass it on when you die, the truth is more and more people fight over estates and you can't do a thing about it, you certainly can't take it with you.

If I can ever unload this wonderful little house, 2,200sq ft - I will never own a house again - unless I win the lottery. It constantly eats up more than the mortgage.

Nope. I own my house and have no mortgage. But it was a long, hard road to get there! In some cases, renting can work for people, but it terrifies me. I'll take the maintenance issues any day over being at the mercy of a landlord. But yeah, the upkeep is a pain. There are other single women homeowners in my neighborhood, and we exchange worker information. Finding a good handyman is not easy! I have stories, lol.

Mario, no offense but I know lots of people who paid off their mortgages and own their own homes.

Marlene, I do hope to own a house...after I retire and move to the country and hopefully I'll be able to pay cash for it. The houses in this valley are way too expensive, at least anything I'd want to own, even with 20% down the mortgage alone would be considerably more than what I pay for rent. The difference between what it costs me to rent and what it would cost me to own goes instead into my retirement accounts. Home ownership is not a blessing let alone and investment for everybody. I know someone that owes almost three times as much as the original mortgage 30 years later, lots of bad financial decisions and bad luck have added up to where she is now a slave to that house, retired now she has to rent out the basement just to be able to pay the mortgage.

"I'll take the maintenance issues any day over being at the mercy of a landlord. "

There are definitely some nightmare landlords out there, another reason I feel lucky. The place I live in is owned by a family trust and so far they've been great, I have no complaints. That could change at any time of course, if does I'll just find somewhere else to live.


BTW, stop paying your property taxes and you'll find out how little you really own.

I'm tired of suburbia, but I have absolutely no regrets about home ownership.
Although, sometimes I'm convinced that all I really need is a backpack...

Marelen, you still pay property taxes every year,insurance which can be very expensive depending on where you live and maintenance and you still can't take it with you and really don't know who will benefit from it once your gone. You could call it ownership but it's really more a stewardship.

I did own a home...A very unassuming house



But it ain't no more...Thanks to Super Storm Sandy...And my neighbor Bob.

Bob wanted my property so much, he did EVERYTHING to get me to sell


By the way,

He not only tore down my house, he tore down his own house (house on the left )

And is building this




While I now live here on my own....A house I rent



The house does go back a bit


So it goes....so it goes


Edit:

I have deer at my new place TOO

We have two houses, one is a rental. That keeps us busy but we like our renters, they have been friends for years.

My husband's about to put our new roof on this week.

One of the shelves in the fridge keeps falling off. New fridge needed.

We have to finish the bathroom reno.

I'd just as soon chuck it all and live in an apartment again or even a camper, just to see how I like it. I think I'm over the home ownership thing.

Mario, you make a lot of assumptions.

I have no intention of taking it with me. It is part of my estate and the profit from it's sales, IF I still own it at the time of my death, goes to my heirs. If I sell it before, it is money I have to use and spend as I need and want...most of which I made from the increase in value.

Of course I pay insurance and taxes. I own the property. I insure my investment, just like I insure other things of value I own. I wouldn't, actually couldn't drive without insurance....can you?
And if you are renting and think the landlord's insurance covers your belongings, you'll be in for a big surprise if you have a claim.

All awesome responses.

I like Roger Swezey's cute place.

I would prefer to rent a home from a real good handyman or woman. I can do all yard and upkeep, but I hate ownership. I can't walk away. I don't like car ownership either.

Ronald, you are lucky. I just sold my second home partly because I found being a landlady very stressful. And I had property managers! They mistakenly gave my last renter a year lease when I had always stipulated month-to-month. I didn't find this out until I asked them to give the tenant notice because I was selling. Then I found out the tenant was 5 mo pregnant with twins and I felt horrible. It worked out, but never again!

Roger, what an ordeal.

Lisa, it's great news that you are able to fix this problem before your gallery is finished. After would have caused much stress.

I'm heading out today to look at small motorhomes. Gonna travel for one to two years in search of the best small art town, preferably by an ocean somewhere.

I've owned my home for 25 years. Over the past two years I've extensively remodeled. It is constant work, but rewarding when things get finished. I'm working on the exterior landscaping now. I didn't maintain it well for a few years. Today I'm planting new fruit trees.

Just went downstairs and heard strange noises coming from the wall over a fireplace. Something is in there. I'm guessing a cat. Oh boy.

Fine Art Nature Photography

Maintenance is overwhelming, particularly if you have no skills or money, but at this stage of my life I can't bear the thought of being at the mercy of a landlord or even sharing a common condo wall. I've had recurring nightmares for years about being forced to move into an apartment building. I'm banking on the hope that my house won't fall down while I'm still inside.

As far as my estate, if anyone contests the terms of my trust it will cost them big time. I won't be around to care.

Same here,,no skills, so I have to hire a handy man,,thank god he is handy,,

"It seems like home ownership, whether someone loves it or not is about repair, maintenance and upgrade. Cleaning, mowing, trimming, painting, plumbing, safety and not wanting to spend twelve hours a day doing all this is the problem. "

That's why, to me, owning a townhouse in a professional hoa is optimal.. they handle all of the landscaping and repairs to the outside of the house. They also handle plowing snow. But, you still have an investment.

Trust me I have zero desire to mow a lawn or maintain a garden.

"That's why, to me, owning a townhouse in a professional hoa is optimal.. "

I have two big problems with townhouses. #1, you are still paying a monthly fee that goes up every year, some townhouses around here pay nearly half of what I pay for rent for HOA fees. # 2. You are stuck in a box packed in with a whole bunch of other boxes. At least around here townhouse developments are packed as tightly as apartment complexes if not worse, my car won't even fit in the itty bitty garages they put under those things, I'd have to park out in the street and sometimes the curb is a half a block or more from your front door.

We bought our townhouse in 2008 right before the market crashed. Prices have almost recovered but not quite. That being said- I love where we live. A quick walk to the beach and lots of hiking trails and parks nearby. Our mortgage should be paid off next year (due to many many extra payments) and our strata fees are low. We haven't had too many maintenance issues but the big one that we did have was covered by the strata. I have no desire for a big house- just more time spent cleaning. Barely any rentals available in our area (and the rent is crazy high). But I could definitely see myself in a tiny home.

Someone has to own the houses otherwise renters would have nowhere to live.

I have rented, owned and also been a landlord for years until recently. Each option has advantages and disadvantages. One thing for sure - they all beat living on the street, which I know some have been forced to do...

Dave- I think it can vary a lot. Townhouses, just like regular houses, can vary greatly.

Our garage is more than big enough to fit a car plus we have two private spots directly out front. I only bother using the garage during snowstorms to get out of the way of the snow plow and to keep the car clean.

It has a nice open floor plan with high ceilings - it's not crunched at all. It is much more open than the standalone houses we looked at. 1800s New England homes are charming but many of them are cramped and not built for tall people - so many doorways I had to duck under when looking at houses lol. The openness of it was actually a big selling point of it for me.

And, even with HOA fees, it's quite a bit less expensive than renting at this point as far as monthly payments are concerned. I suspect in five to ten years that will even more true assuming we don't have another major crash.

Hoping and praying to settle into my own tiny humble abode. After traveling and investing this this great USA I need to settle in now.

" think it can vary a lot. Townhouses, just like regular houses, can vary greatly. "

I haven't seen any townhouses like you describe around here, you apparently have more variety in your location. There's a large townhouse development just a block from were I work which is a mostly industrial area, so not the nicest area, though there is a park across the street from it. Anyway, this development takes a full two city blocks, the streets are full of cars owned by the residents. The only parking inside the development is too small garages and four communal parking spots per 6 or 8 townhouses. They are going for around $250k! That really baffles me since I can get a house with a garage for that much or even less in better areas. So not only are they paying that crazy mortgage they are paying HOA fees on top of that. This kind of development has become the norm, they are popping up all over the place, have been for more than ten years., anywhere there's enough open ground and the city approves it. I personally think it's insane, but with people paying those prices for that kind of living arrangement a developer would be stupid to bother making anything better.

David, there is low inventory everywhere [clarification: On the west coast -- I have no idea how the east coast is doing]. People who want to get into home ownership will start with a townhouse or condo. You are right, they are cropping up everywhere. I've been looking in the Reno area, and there is so much new development, it's mind-boggling. There are only so many older homes to go around. To me, 250k is cheap, but then I'm from California, so ...

The crazy thing though Patricia is I can buy a decent home with a yard and garage in a fairly nice area for less than I can buy a townhouse in a cramped development in a marginal area in though the market for single family homes is real hot here right now. We can't leave anything containing metal outside overnight or it will get stolen for scrap, cars are being broken into all the time, one time someone even stole the power feed wires into one of our buildings, risking life and limb (not to mention incarceration) for a few bucks worth of copper, but I can buy a townhouse here for a cool quarter mil. Maybe it's just the hip thing to do.

Oh, speaking of not really owning anything, there's a huge housing development in the southwest quadrant of our valley, it's on land owned by Rio Tinto, (the big international mining company). From what I understand the "owners" of those houses only lease the land from Rio Tinto, they literally don't own the land their houses are built on yet they still cost as much as similar housing elsewhere. More insanity.

If there weren't demand, there wouldn't be a need for supply. Once you start looking in earnest, you'll most likely find that there are not that many decent older homes available. Could there be a tech sector springing up in your area? The jobs those provide are what is driving new developments in some areas.

But it's a moot point, since you are happy renting. I personally don't care for new developments, being that my needs now as a retired person are modest, and I don't want to pay for "new." But I don't want fixer-uppers, either. I had a mid-century home in San Jose, CA, and I could not afford the upkeep ultimately. I suppose I could have taken a second job, however, and worked until I dropped. But quality of life is important.

Patricia, my Mom's house is in a good neighborhood, 1100 sq. ft. with a finished basement, only 1/0 acre but that's the norm in the area, it has a real full two car garage, her house is valued at about $220k (talking actual appraisal, not valuation for property taxes). I have actually looked into it and there are decent houses available for less than $200k, though not with garages or shops as large as I'd want or areas as nice as I'd like to live in but not dive neighborhoods either. Yes, there is excessive demand for those expensive cramped townhouses, I just can't figure out why.

Ownership is a moot point for me if I wanted it anyway, I can't afford to buy a house that would give me better living conditions than what I already have. I recognize, the tables may turn on me some day, (owners sell the duplex to someone who immediately jacks the rent up through the roof for example), I should be doing a better job of saving money for that day.

For someone with a multiple-pet household, like me, renting just isn't an option. But that's okay. If I were a renter, I wouldn't have accumulated my animals, anyway, lol. Everybody has to do what they are comfortable with, though. One thing I know for sure: when my kitties and dog are gone, that's it for me in terms of having pets. Okay, maybe a cat -- but no more dogs.

David, perhaps you will inherit your mom's house one day, and it sounds like a nice place.

I'm in the process of moving into my fifth house I've owned in my adult life. I'm hoping this is going to be the last big move. Every move has been a good opportunity to purge unwanted stuff, at least in theory, but there never seems to be enough time.

The plan at the moment is just to get the stuff here and then purge when the kid is away at college.

The rule of thumb is if you are renting for more than three years, then buying makes since. But it differs from market to market. Zillow put out a book that talks about the issue, but they tend to have the most stats on metro areas. I've also seen studies that show on average that home ownership is a terrible investment compared to other investments you can make unless you time it right. But it is where you live, so you control how long your commute is, what type of neighborhood you live in, the schools etc.

I've lived in hot markets that my house sold within a few days at double what we paid to cool markets that took months and were lucky to just break even.

Maintenance is a pain although some times its enjoyable. I enjoy yard work most of the time. I don't mind small projects. I'd hate to be in a rental where I couldn't do any improvements.

There are definitely some home improvement project you'd rather not have to spend money on like a roof or new furnace. No fun there.

Also, houses as an investment aren't very liquid. It's a royal pain trying to sell one. The process is long, there are all kind of issues that can come up. It's unpredictable. Stocks would be preferred - you can liquidate in minutes. But you get tax write offs with property that you wouldn't get with other investments. Besides you can live in it.

Definitely the trend of the new generations is towards downsized dwelling and living for "experiences" rather than things. The old notion of pride of ownership and enjoying the pursuit of the perfect lawn is dwindling. Millennials would rather live in a small apartment and travel. Don't know what that means for the future when they go to retire and don't have a nest egg.

Patricia, unfortunately inheriting my Mom's house means inheriting her mortgage, she has little equity, my guess is she'll have to sell the house before she dies anyway. If she lives as long as her mother did she's got about 15 years to go, I hope to be retired and living in the country somewhere before then.

I'll admit that's one thing I dislike about renting, I can't have a dog.

Good point DK -

If you have a nice landlord they will grandfather you into whatever rate you're paying and won't demand market value. I have a friend who lives steps from Venice Beach in a tiny studio in Southern California and hasn't had his rent raised in over ten years. If the other shoe drops and the rent comes up to market value he's basically going to have to leave that region of the country completely. He probably won't be able to live within over 100 miles of where he is now due to the rents being so high there, plus a good percentage of the rentals are going airbnb out there..

Toby, I think my landlord (actually landlords, it's a family trust) keeps the rent lower than market value so they can be choosy about who they rent to, because of that they probably make more money in the long run. They have six units and I've noticed they have a much lower turnover rate than the units across the street.

California is a really tough market for buyers and renters, you won't see me ever moving there.

I've owned 3 homes, since 1980...only moving because cities changed. Each was very different from the next. The one thing they had in common was all had a HOA.
The last home tripled in selling price in 13 years....location, location, location!
I love watching the House Hunter programs on t.v....there's a lot to learn about updating, maintaining, buying and selling.

I agree on Househunters, Marlene. I usually have that on for background noise when I'm doing other stuff. I'm obsessed with real estate, slightly. One beef about that show is that they almost never mention the neighborhood, only the house. We know the neighborhood is most important, because you can be stuck if it's not a good one. It's easier to fix up an older home in a good neighborhood than change your neighbors in a bad one!

I shouldn't jinx myself here, but I'm rather spooked today because I had strange noises coming from my plumbing. My house was built in the 1940s, so issues come with the territory, I know. Again, neighborhood reigns, though -- excellent neighborhood if you want to put up with old house issues. I'm fine with calling a plumber, and I have a good one, but why do these things always happen on a weekend? Usually a Sunday, no less. A few years ago, I needed to call a plumber on a Sunday (not my current wonderful plumber), and even though I was prepared to pay extra, they refused to come out because they were watching football. At least they were honest about it. Honestly!

Patricia, not long ago my husband decided to replace some parts on my bath tub to make it beautiful. Well, his project went south and we had to hire a plumber for 400.00 per hour. He was a nice man, he wasn't able to fix it though, I had to live with our entire house water off for two days...well not really, my husband was able to rig it in a temporary way, but what an expensive mess.

Pat,
what kind of sound? When Honey is out back watering with a hose that has a shut off sprayer, the pressure backs up and it squeals.
My daughter's last rental had that noise in the house all the time and I warned her ...I recognized that backed up sound immediately and it wasn't a good sign!!

Marlene, I think it's like air in the pipes or something. Hard to describe. A deep growl, I suppose. It may be in conjunction with a weak response by the toilet. I've had plumber out for this issue before, and they never seem to think it's anything. This time, I will ask them to please fix this once and for all, because plumbing bugs me to no end. I can take anything else, but not plumbing issues. Having an old house, it's kind of to be expected. No more old houses for me!

Lisa, I could definitely beautify my tub, and it needs it, but I know how one thing can spiral out of control, and I'd end up having to re-plumb the whole house. Actually, I should, lol. Glad you got yours done, but it does come at a price.

My house is only sixteen years old, but has many problems. My bathroom was possessed by a weird gaseous stench and a floor that was warping around the toilet.

My husband changed the toilet out and it continued. So I hired the same plumber, had to miss a day of work, but he found the problem. It was this red thing that was just under the toilet and he said these things were dysfunctional. I don't even know what the part was and he didn't charge me much over fifty dollars to fix the problem, but there are fifty more problems in the future that I'm sure will haunt me.

A growl? You got a demon. LOL, just kidding.

House. We own way too much house for two peeps, but we have a lot of art stuff and that takes space. I would give up anything to get away from the neverending maintenance except for not being able to see neighbors. So, yeah... a house. This one is good because even though I can't see my exceedingly conservative neighbors, they are still close enough to disturb when I wanna have some fun. Best of both worlds.

:::cranking up a little Ramones:::

WHAT? SORRY, I CAN'T HEAR YOU.

___________
Susan Maxwell Schmidt
So-so Board Moderator and
Artist Extraordinaire

I've had two houses. Neither were homes as the worry about upkeep was too much. I chose the wrong homes.

I also bought a houseboat.....well it's got house in it

Paid cash to an estate agent selling it on behalf of her cousin

Took all the cleaning equipment down to find no water or electricity ...had been told they were on board and working.

Took a good look around her. Lovely houseboat only needing a little cosmetic work up top. Was exceptionally happy.

Went off to the marine office to have everything turned on. When I got there he didn't understand what I was asking for and I had to explain several times. He told me I couldn't have bought the houseboat as it was in receivership. Meaning it belonged to the bank as the guy was bankrupt.

It was not for sale.

!!!!!!!!!!!!

Susan, I am lucky that my neighbors and I are highly tolerant of all types of people, it's so liberal. I'm sorry you have to suffer a clash in beliefs with your neighbors. I have one neighbor who hates cats.

My neighborhood is a kind, upper middle class neighborhood. My house is like a cheap dump, but there are homes near me that are half a million on up in terms of value. When my husband and I built, he wanted the lowest cost home in the best neighborhood. I think I would rather had the best house in a cheap neighborhood. Live and learn is what's happening for me, but I'm too busy to move.

Abbie, the story you just told is extremely painful. What will happen with all this? Will you get your money back, is it a total loss? I'm panicked for you.

This was a few years ago now. No I didn't get my money back. Another reason I refuse to buy a new house. I did get a new boat recently though instead lol

Okay, well that's good to know Abbie.


Everyone, thank you.