• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

If you don't own a home, do you plan on getting one in the next 15 years?

J

jinduy

Diamond Member
i live in cali, close to pasadena. so the average price for a decent home, in a decent area (half decent school district, <20 miles to work) would run me about 500k (2 bed, 2 bath, 1400sqft)

a few of my friends n coworkers just bought homes to capitalize on the "sinking" housing prices (like 20% in my area) and now i see them stressing like crazy because the unemployment rate is steadily rising and layoffs are happening.

anyway, i'm starting to really question if i should alter my goals of getting a house in so-cal. i'd really rather not settle for living somewhere 30-40 miles away from LA because it's cheaper (and tend to be more ghetto).

I'm curious to see how many of you are still set on buying a home, especially the californians.
 
Originally posted by: jinduy
i live in cali, close to pasadena. so the average price for a decent home, in a decent area (half decent school district, <20 miles to work) would run me about 500k (2 bed, 2 bath, 1400sqft)

a few of my friends n coworkers just bought homes to capitalize on the "sinking" housing prices (like 20% in my area) and now i see them stressing like crazy because the unemployment rate is steadily rising and layoffs are happening.

anyway, i'm starting to really question if i should alter my goals of getting a house in so-cal. i'd really rather not settle for living somewhere 30-40 miles away from LA because it's cheaper (and tend to be more ghetto).

I'm curious to see how many of you are still set on buying a home, especially the californians.
Click to expand...

Austin or Dallas. Let CA fall into the ocean. (me = Los Angeleno)
 
Ive been telling my wife for the last 5 years we were waiting for the housing market to crash. My family and friends all looked at me like I was insane. I figure we'll start looking at foreclosures next year.
 
Possibly. On one hand, it's awfully nice if something really bad goes wrong, like someone ramming the front of the building with their car, or a tree falling on the building - it's not really my thing to get taken care of, my landlord does that.
But I also have an awesome landlord. 🙂

I figure I'll be buying a place within the next 15 years, possibly 5. Assuming I can land a decent job, of course. I've got another semester before graduating.

 
I do plan on getting one within 15 years, but it will probably be around at least 8. I'm still in school.
 
Well, owning costs more than renting, even though you own it. So far Ive owned and sold, and am renting again, as I would rather stuff money into liquid investments/retirement/savings and be flush with cash. I would rather get to retirement and be rich in cash (which I will be) and not own a home than to have less cash and own a home. I will say I *could* do both as I make great money; however if NOT owning a home means I retire 5 years earlier, so be it. I plan on moving out of country anyway when I retire so owning a home doesnt make sense for me.

YMMV of course.
 
Originally posted by: blackangst1
Well, owning costs more than renting, even though you own it.

YMMV of course.
Click to expand...
Yes, this is a time where your mileage will vary. No one can make a blanket statement like you did and be accurate. Owning MAY cost more than renting. Renting MAY cost more than owning.

Most of the time and in most locations, it costs less monthly to own than it does to rent (assuming equivalent homes). Why? Because with renting you are paying for the building, the maintenance (built into the rent), and the profit for the real owner. When you own, you don't pay that profit. Of course, if you live in a wacky market (such as the areas with a recent massive bubble) then even this paragraph won't be true. In wacky markets, people become desperate and the rules-of-thumb change.

But, even if renting is temporarilly less for the equivalent home, it won't be for long in most cases. Suppose you can rent a home/apartment for $1000 a month now and you can own the same thing for $1500 a month. It may sound like renting will be cheaper. But that house will be $1500 a month for 30 years then drop to near nothing a month for the rest of your life. Renting will keep increasing. In 20 years, that same place will rent for over $2000 a month when buying is still $1500 a month. In 30 years, that same place will rent for over $3000 a month, when if you bought it you'd own it free and clear.

The key to making owning a house be the better economic choice is to live there for a long enough time. Otherwise rent.
 
I hope to buy a home by the time i'm 35 (26 now). But the area I live is very expensive so we'll see. I'll have to start doing very well with my investments if it is ever going to happen.
 
Originally posted by: dullard
Originally posted by: blackangst1
Well, owning costs more than renting, even though you own it.

YMMV of course.
Click to expand...
Yes, this is a time where your mileage will vary. No one can make a blanket statement like you did and be accurate. Owning MAY cost more than renting. Renting MAY cost more than owning.

Most of the time and in most locations, it costs less monthly to own than it does to rent (assuming equivalent homes). Why? Because with renting you are paying for the building, the maintenance (built into the rent), and the profit for the real owner. When you own, you don't pay that profit. Of course, if you live in a wacky market (such as the areas with a recent massive bubble) then even this paragraph won't be true. In wacky markets, people become desperate and the rules-of-thumb change.

But, even if renting is temporarilly less for the equivalent home, it won't be for long in most cases. Suppose you can rent a home/apartment for $1000 a month now and you can own the same thing for $1500 a month. It may sound like renting will be cheaper. But that house will be $1500 a month for 30 years then drop to near nothing a month for the rest of your life. Renting will keep increasing. In 20 years, that same place will rent for over $2000 a month when buying is still $1500 a month. In 30 years, that same place will rent for over $3000 a month, when if you bought it you'd own it free and clear.

The key to making owning a house be the better economic choice is to live there for a long enough time. Otherwise rent.
Click to expand...

Well there are other factors also. In your scenario, yes, rent will increase in time. But the question is will it increase faster than what that money invested will grow to? Im not convinced it will. Sure in the short term $1000 is less than $1500, but what will that $500/mo invested properly grow to in 20 years? Compound interest is a powerful thing. Also, your retirement plans have to called into consideration. Not everyone will settle when they retire. Many people spend more time away from home than in it, so it wouldnt make sense (IMHO) to own. Sure, you could sell at that point, I understand that.
 
Houses are extremely fucking expensive, and a shitload of work. I never want to own one.

Edit: I will, however, probably end up with my parents house in 30 years or so.
 
I'm waiting until I'm farily certain I won't be relocating for the next 5+ years. Otherwise, it's probably cheaper and much more convenient to rent.
 
We originally wanted to buy a house in Howard County in Maryland. But houses were expensive here, and given the current ecomonic situation and all of the contingencies that come with it, we bought a new house 30 minutes away for significantly less. Now we're in a position to make all payments (including mortgage) and all living expenses if one of us were to lose our job. We're also in a position to save a hefty penny for a rainy day.

Our dream house/community to live in would be in Howard County Maryland, but we're still young. When we make more money, we'll move back to Howard County.

My advice to you would be to purchase now, but purchase only what you can afford. Being able to afford something does not mean being able to make the payments. Affordability to me if making payments while maintaining a cushion/leverage against any setbacks/misfortunes/contingnecies. When you make more money, move and purchase in the area you originally wanted.

A lot of people who have recently had their homes foreclosed would not have lost their homes if they made decisions with this logic in mind.
 
Originally posted by: Turin39789
The country will be greatly improved when CA falls into the ocean and we give TX back to Mexico.
Click to expand...
The Southern States should break away and form their own nation. Oh wait...
 
just like i will never lease a car, i will never rent a home.
there's just something to be said for having ownership (even if it's the banks for now), that you can do whatever you want to your home inside your walls.
 
Originally posted by: BlahBlahYouToo
just like i will never lease a car, i will never rent a home.
there's just something to be said for having ownership (even if it's the banks for now), that you can do whatever you want to your home inside your walls.
Click to expand...
Not true if you live under a HOA, e.g. window shades have to be a certain color/style.
 
Originally posted by: BlahBlahYouToo
just like i will never lease a car, i will never rent a home.
there's just something to be said for having ownership (even if it's the banks for now), that you can do whatever you want to your home inside your walls.
Click to expand...

Never say never.
 
I'd like to say yes considering I'll be 25 come March. But I too live in So. Cal, work in LA live in a suburb with my parents. We have been in the same house for over 20 years so owning made sense for them. They have dumped a huge amount of money fixing the thing up though.

My job status is shakey right now (just a temp gig). I participated in a huge rent vs. own thread on another forum and actually came out thinking that renting might not be such a horrible thing.

My parents are building a new house and should be moving within a year or two. At that point I better have a steady job or I'm SOL. It's likely I will be renting for the first time as I don't think I'll be ready for a house that quickly.
 
Originally posted by: dullard
Originally posted by: blackangst1
Well, owning costs more than renting, even though you own it.

YMMV of course.
Click to expand...
Yes, this is a time where your mileage will vary. No one can make a blanket statement like you did and be accurate. Owning MAY cost more than renting. Renting MAY cost more than owning.

Most of the time and in most locations, it costs less monthly to own than it does to rent (assuming equivalent homes). Why? Because with renting you are paying for the building, the maintenance (built into the rent), and the profit for the real owner. When you own, you don't pay that profit. Of course, if you live in a wacky market (such as the areas with a recent massive bubble) then even this paragraph won't be true. In wacky markets, people become desperate and the rules-of-thumb change.

But, even if renting is temporarilly less for the equivalent home, it won't be for long in most cases. Suppose you can rent a home/apartment for $1000 a month now and you can own the same thing for $1500 a month. It may sound like renting will be cheaper. But that house will be $1500 a month for 30 years then drop to near nothing a month for the rest of your life. Renting will keep increasing. In 20 years, that same place will rent for over $2000 a month when buying is still $1500 a month. In 30 years, that same place will rent for over $3000 a month, when if you bought it you'd own it free and clear.

The key to making owning a house be the better economic choice is to live there for a long enough time. Otherwise rent.
Click to expand...

Someone wrote up this analysis on the web somewhere, and included a bunch of math about interest and inflation. He basically came to the same conclusion: owning is basically freezing your "living space" payment for 30 years, which usually comes out cheaper in the long run. I wish I could remember the website. 🙁

 
You must log in or register to reply here.

TRENDING THREADS

Back
Top