The “Water Cooler” is a feature on Claycord.com where we ask you a question or provide a topic, and you talk about it!
The “Water Cooler” will be up Monday-Friday at noon!
Today’s question:
QUESTION: Would you rather rent/lease or own a house? Tell us why you answered the way you did.
Talk about it….
Own, until our sky-high property taxes are due on our two homes. At that moment I’d rather rent or pitch a tent in the park of choice, whichever comes first.
We own and is it paid off. But does need some up-grades, which we can afford even within retirement soon.
With the price of rent or house payments now days, I don’t know how people can afford any place.
Property Taxes, Home Insurance, maintenance, .. etc.
Think we’ll stay put here, .. even with having 1 bathroom. Thank goodness it works, LOL!! 🙂
I own, it’s all paid off, don’t want to rent again if at all within the realm of possibility.
Own… who wants rent to keep skyrocketing?
Own. Successfully pursue that happiness. I personally view renting as paying off someone else’s mortgage, or building someone else’s wealth. Owning means every mortgage payment is building equity, until mortgage is paid off, then no more rent. That is the high level view I have. I understand how difficult it is to be able to buy a home these days; not sure it will get any better anytime soon.
Hard to say. After years of renting where I looked at my rising apartment rent and thought “I could pay for a mortgage payment on that” so did. I got a pretty good place in a good location for a good place all by timing. There were definite advantages to buying and the place hasn’t been to hard to keep up. But now I want to downsize before the guvmint demands I can’t live in this small 4 bedroom by myself and must take in some others (pardon the politics). I might move to a rental or buy another place but probably not in Taxifornia.
Own … will be paid off in ~10 years, almost 5 years earlier than ‘scheduled’.
We own rentals as well, as others have said, the tenants are paying off our mortgage, taxes and insurance, while building equity for us.
Own. By owning you lock in your housing costs, assuming you get a fixed interest loan. Housing is the most expensive part of the cost of living. Yes, property taxes can go up 2% a year. And you’re responsible for upkeep and repairs. Most repairs can be done by yourself with a little sweat and YouTube. Those costs don’t come close to the increases in rent or property values over the long term. And you can be mortgage free in around 30 years. Instead of paying off your landlords mortgage. Rent costs have more than quadrupled in the time I have owned my home. Housing values have gone up 700% in that time. And now I am mortgage free and can spend that money how I feel. I put solar on the house for the cost of 2 years of mortgage payments. And now I own the panels and battery. When I first bought it was a difficult stretch of my finances. But I persevered and things got better over time. Owning is definitely better than renting.
Thinking of selling and going back to renting. Having so many problems with the house, from the chimney separating from the house and ripping a wall off, broken pipes under house, every wall having huge cracks in them, doors not shutting properly, garage door doesnt wanna work anymore. There is never anything to not worry about and so much work i have do no time and money to do anything anymore, all money goes into house and i have no money to buy me food let alone a baby. Getting sick of it and cant afford to live, may have to move out of state finally.
Hi FKLYFE, forgive me if I’m over-reaching, but I saw your post and my heart really felt the difficulties you described. Given that homes can be expensive, time consuming and often a “money pit”, maybe it’s not “owning a home” but for you “owning THAT home” is what’s proving difficult for you.
Our first home was a fixer upper and it took money we didn’t have to repair and replace nearly everything. So when we moved to NorCal, we bought a newer home with all things working well, and had a handyman come in to fix all those little things you described, to make our new place truly a quality, peaceful, liveable home.
I’m glad we did because 24 years later, those babies are now grown and gone, and the place is still in good shape, I’ve learned how to be “handy” (thanks to YouTube) and we’ve even updated a few parts of the house over time.
So, sorry for the long story, but if your current home doesn’t suit you, and you can’t see it ever suiting you in the future, then perhaps selling it and buying a condo (less upkeep) or a smaller home with a good HOA that really does their job, is more suitable? Here’s hoping everything works out well for you and that precious baby.
WDG
Sort of an unfair question because things have changed so much from when many of us were younger. I don’t know how I would survive in today’s world. Keep the faith and keep plugging away.
Yeah, when I bought it was easy to throw some money at anything I couldn’t fix or keep up myself. Over the years my funds on hand eroded while the cost of fixing things or hiring it fixed rose quite unnaturally.
Unless you bought before prop 13, owning a house in California is crazy. My landlord hasn’t raised my rent in 12 years. I will retire soon and move to free America. Never set foot in California again. I would never buy real estate here.
Honestly, your landlord sounds like a fool for not raising rent in more than a decade
He’s a FF and so am I. Maybe your mortgage company will raise your race 4%? How about them apples?
We have not raised our rents in our 4 years of being a landlord either. Currently we rent below market to a nice young family, though the rate was fair when they moved in.
Not a fool, quite the opposite. The tenants always pay on time. They take care of the property and even fix minor issues themselves. The rent covers our mortgage, insurance and taxes on the property.
Sure, we could raise it and maybe the tenants would leave because they cannot afford it … but then again we would need to find new tenants and maybe we don’t get such good ones next time.
I bought after Prop 13. The law is still in effect. Your property tax can’t rise more than 2% a year.
I guess your landlord is rich and doesn’t need money.
Own, no mortgage, still have taxes and insurance. Might give up the insurance next time it is up for renewal since it was raised in June.
Dorothy, With all due respect, why would you go without homeowners insurance? There are so many things that could happen to your home, that would not be rebuilt or paid out, should something untoward happen. Fire, major theft, water damage or a host of other perils.
A number of retirees in Paradise, CA were of a faith that did not accept homeowners insurance, and look at what they’ve been left with.
Please, reconsider your rather drastic view on your homes value and the fact that you might become “unhoused” should something happen God Forbid.
Do check with all the other real estate insurance companies, such as Lemonade and Liberty, CSAA and others. You may find lower rates with them. Best Wishes!
WDG
Own, have no mortgage nor car payments. Planning on getting out of California ASAP to have a much better life.
Own
But never again in a Democratically run state.
We own.
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All four homes are free and clear. Renters paid all of the mortgages and remodel/repair fund accounts were built up over time. Two homes’ tax base were inherited from my and the wife’s parents.
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We retired early because of having no mortgages. Over the years our household budget and spending was crafted as if we did and all that money was apportioned 80 percent stocks and 20 percent bonds/money market accounts.
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@EXIT 12A ~ You have done well.
Color me green (with envy), good on ya!
Bay Area housing … ??? … suck it Spade … I moved to Southeast Asia and live a ballers lifestyle for a fraction of the cost of living in stupid Khaliphorniya … but you all keep putting up with the BS … I’ve got a tee time for golf at my local par 3 executive course … which cost $40 usd for unlimited play all day on weekdays … cha ching!!!
@JoJo THE CIRCUS CLOWN ~ Sounds very Nice!
Question, … Health Plans? Hospitals? Easy to get care you need?
Just got MRI + 1-hour with doc … office time … $200 usd … no wait … no muss-no fuss … way better medical care here than in the west … insurance not needed ’cause everthing is reasonable … unlike USA where rouge insurance mafia is killing families …
Oh … forgot to mention … I walked to my MRI clinic … 5 minutes from my dad-pad …
I had same thoughts as Roz, regarding healthcare, more the availability of the day to day, but not dismissive of the needs of the more elder, or more infirm patient. I have read your descriptions in the past, and it does sound intriguing (I would not do it, since my family is here, and the flight would be too far/long for the visits), as well as nice. I will continue to (briefly) experience SE Asia living vicariously through your words.
Own, paid off, bought Parents house and filed single page form to retain their Prop 13 tax bill.
Kids consider buying Parents house, will save you money !!!
When it’s time will offer our kids same thing.
Own.
I would worry toooo much about landlord asking me to leave so their adult children could take over the place. And then I would have to find another place. I have never met a landlord who upgrades anything in long term rentals.
Also, I budget at least 1% a year of my homes value for repairs and upkeep. Crossing fingers, I now have a pretty good nest egg for a major repair.
Planning works.
Own. But be ready for unending maintenance/other costs that a landlord would otherwise pay….roofs, appliances, plumbing emergencies, property taxes, insurance, landscaping, repairs, etc. etc.
Property taxes & upkeep, repairs & improvements still beats the hell out of renting.
What I told Son, buy just enough house, put six months gross salary in the bank and don’t touch it unless it’s an emergency. So if you get laid off or something needs fixing you don’t have to stress. Contribute max towards retirement each year. Key on retirement savings is when you start, earlier means a more comfortable retirement due to effect of compounding. With extra money after savings and retirement, pay extra on principal of house loan. Total number of payments over life of loan drops, equity builds and you save yourself a ton of money. Using that setup, worked a bunch of overtime in 2000s and paid off 30 year loan 14 years early.
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Now oldest tool illiterate Grandson and his young family live in that first house rent free and together we do repairs and improvements. That way when I’m gone in a few years he will be able to do repairs himself and maybe come over the hill and fix things for his Grandma. Told them also we will sell the house they’re in for half price and to think about it.
Lets try last sentence again,
Told them we will sell them the house, they’re in, for half price and to think about it.
Own a 2 bed condo, 1.5 bath in corcord..not paid for, but it is still very cheap compared to renting. We got that 2.5% interest on a refinance few years ago. Planing to stay here in Concord until something better comes along, most likely if we sell we would invest in El Salvador. 25 years ago sold a Condo here as well and was not able to really invest the gains here once sold, so I invested all in my country. I own there 2 homes and 2 house lots, only 1 home still own by the bank but loan is being paid by renters. Dolar goes along way in other countries, just get an immigrant friend, you will be amazed on how beneficial it can be sometimes.
Very lucky, own 2 homes, both paid for. Will be leaving them for my Grandchildren. I don’t know how anyone can pay these rental rates. I bought my first home when I was 17 years old. Can’t see anyone doing that now.