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A lot of the costs people associate with owning are discretionary. Your house needs a roof every 30 years or so, it needs running water, it needs the electrical working, every 30-45 years it needs siding. It's not that expensive if you stick with it, like any investment. Problems with plumbing are often because tenants themselves mess it up.
When I was house-shopping, at my price point I looked at a lot of low-end rent houses that were up for sale. Landlords are not spending much on fixing them, I can tell you that much. The difference in most people's experience when they own is that they feel it necessary to upgrade a lot of finishings.
In what markets are rents lower than mortgages? I would assume that in most markets, market value is reflected by the rental rates.
Just a note - rent rates aren't based on what mortgages are. Rent is based on supply and demand, mortgages aren't. Mortgages are determined not only by the price of the home, but also by how much of a down payment is made.
For instance, say that a house rents for about $2000 a month in a particular neighborhood. It doesn't matter whether the owner of the rental property has paid it off, has a mortgage of $1000 a month, or a mortgage of $2500 a month. The rent cost isn't based on what the mortgage payment is. It's based on what homes typically rent for in a particular area.
So work on your situation till you can buy a house, like nearly everyone who has ever bought a house had to do.
By the way, we bought a stove last year. $2500. Get ready for all that fun!
I just took a new job in the area and don't feel comfortable buying now. By this time next year, my goal is either to have bought a residence or move back South.
Spending $2500 is completely up to your taste. This stove is under $700 and would meet my needs just fine.
I just took a new job in the area and don't feel comfortable buying now. By this time next year, my goal is either to have bought a residence or move back South.
Well, it sounds like you're doing exactly what I recommended.
And I know - I could have bought a $700 stove. I wanted a dual oven gas stove with six burners. So I bought one.
I used to live in California. When I 'retired' early because of health, I took an inheritance early and moved to a small town in a much cheaper state. There my house, in fact the whole neighborhood, would be torn down. Most of the town might be. But its stood strongly for eightyfive years and still stands well. It's a good size and the costs of living are low. And I have wanted to get out of fast paced, smoggy socal for years.
My house cost 13k. It had a little work needed to finish up a refirb which wasn't finished. It's still an ongoing hobby making it just right. I'm perfectly happy out of socal and love that my house DOES have character.
I watch the shows on H&G channel, and keep wondering why these two people families need giant houses, and when they are going to figure out that upkeep is going to be based on size, not how many bodies there are. But while its a bit too small, I really love the tiny house shows since I can use some of their space saving ideas. Honestly, if I didn't have the one large room which gets stuffed with things, I could do fine.
I see the future for a lot of people is going to be places they hadn't considered because they are places they can afford, and with more gathered, a new reverse migration for retirement and if the job base is good enough, young people who don't have a lot of options.
My millenial son and his wife moved to a less populated town where there were jobs, in a less full state, and got an apartment of comfortable size for a small portion of the cost it would be in California. And they like it so much I think they'll stay. Both are working and attending school now and they are looking at a good future. Once, when people couldn't afford the place they were living, they'd pull up stakes and leave. I think when the current mess crashes, a lot more people will consider that option.
I completely agree. I know someone who is a nurse in NYC, lives in Manhattan, makes over $100k, and pays nearly $4k per month in rent. She could find plenty of employment opportunities elsewhere, but yet chooses to stay in NYC, no matter how much the cost of living burdens her. It's not for me, but if that's what people want to do, fine - just don't constantly complain about it.
I've been to NYC, Boston, DC, and Chicago (none of the major west coast cities though), all but Chicago are outrageously expensive, and none of them are easy to get around in with a typical American lifestyle. I was in the Boston suburbs for a month a couple years ago, and took the T from Alewife into the city. Driving is a nightmare there, and I'm basically limited to taking back what I can carry. I go to Costco about every week and buy at least some things. If I lived in one of these major cities, I probably couldn't do that, may not even have a car, and would have to shop at small stores, buying fewer items, paying more for that, etc. That's just one of the inconveniences for me. I have another cousin who is a lifelong resident of NYC and my lifestyle of driving 100 or 200 miles for hiking or just to unwind is completely foreign to her.
I don't know why people are flocking like lemmings to some of these cities. You couldn't pay me enough to live in Boston. The congestion and cost of living would drive me insane. There are so many cheaper alternatives throughout the country, from Phoenix to Detroit to Tampa, that could fit almost any budget or interest.
My home was built in 1958 and everything is 1958... Formica, Linoleum, stove, oven, toilets...
Home was built by a retired Navy couple and they lived here until they moved to a retirement community... even with ancient original furnishings... everything is in excellent condition.
New is not always better.... sometimes it is only new.
My parents' home was built in 1973 and has an olive green toilet in the basement's half bath. The other toilets have been replaced twice since they moved in 1998. That olive green toilet is still the most reliable of them. No, new isn't always better, but things break down, wear out, and have to be replaced.
Which has nothing to do with those homeowners you hate/envy. Which has nothing to do with the government officials in charge of zoning that you hate. Which has nothing to do with the evil landlords you hate/envy.
Which has everything to do with the fact that you make little income, and have bad credit. Period. In your fantasy, you would have been able to buy your dream home if it had only been available to you. The reality is that if you can barely afford to rent a room in a house with lots of other people, you never would have been able to afford to buy that house. No matter how you've convinced yourself otherwise, it never would have happened.
Entitled is wanting the same thing that others have, but not wanting to pay the price for it. When you feel you're owed something that others have, but you haven't earned. You don't even work a full 40 hours a week - how do you get that you're "owed" owning a home?
I view my biggest current obstacle the insufficient supply of 400-sf units I can afford to rent. Once I had such a unit I could ditch my storage unit and work from home and thereby earn more money.
So you truly believe that if that unit was available to you (which it is, in the form of condos or mobile homes, but they're not "good" enough, apparently) do you honestly believe that you would find a bank willing to give you a mortgage? You have low income, below full-time employment, no down payment, and horrible credit. The bank doesn't lend on "wishes". They aren't going to give you money for what you're "going" to do, but what you ARE doing.
The fact that you believe that supply is your biggest obstacle tells me you have zero self-awareness.
I'm a housing Keynesian, I think property taxes should be very low when the rental market is slack and high when the rent is too damn high.
Interesting idea. My guess is it would not work out in your favor.
A property tax, just as all taxes on business, partly is paid by the owner and partly by the customer. How much of each is based on the price elasticity of demand for housing (and in the long run, also by the price elasticity of supply -- and, as you've pointed out many times, local governmental entities artificially restrict supply through zoning and adverse regulation).
When the rental market is slack, property owners end up paying most of the property tax as it is difficult for them to raise rents because renters have lots of options to move.
When the rental market is extremely tight, the renters end up paying most of the property tax, as landlords can raise the rent to cover the added expense.
My parents' home was built in 1973 and has an olive green toilet in the basement's half bath. The other toilets have been replaced twice since they moved in 1998. That olive green toilet is still the most reliable of them. No, new isn't always better, but things break down, wear out, and have to be replaced.
Here, here. We bought a house built in 1950 a few years ago. The kitchen had new floor and countertops, but the cupboards were original. We debated for 4 years on what to do to update the kitchen, because the cupboards are SO well built but very dated. We were hesitant to tear them out, because anything we replaced them with would be lesser quality. So we decided to refinish the bases and replace the doors. The new cupboards we put in our laundry room are sooooo cheap compared to the ones in the kitchen.
Everything else is pretty much original - floors, windows, doors. And all are solid as a rock.
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