Owning a Home is SO NOT WORTH IT!

[mark_wpduet]

Last week, we had a major thunderstorm that knocked down trees all over the city, including the tree I planted in 2004 when I moved here. It had grown so big which completely blocked the neighbor's house. It also fell onto my backyard privacy fence damaging it. My Fridge died only a few months ago and had to replace that. And now, my central AC is out and someone is coming out tomorrow morning at 9 am. I'm so hoping it can be fixed and the whole thing doesn't have to be replaced.

For me, it just seems more trouble than it's worth to own a home. I keep waiting for the next thing to fall apart. I guess it would be worth it if you lived with a handyman who knew how to fix all the stuff that breaks. I've been trying to decide in my mind if there are more pros to owning a home than cons.

 

[helicaldrive]

Sorry you’re discouraged right now

Homeownership definitely involves periods when it’s one thing after another.

But most of the time it’s not that way.

Think about all the joys of home ownership:

Your own garage
Driveway to wash/wax your car
Space to piddle with things in private
Room for all the appliances you want
Your own grill in the back yard and if you like gas you can shoot a line through your basement and skip the inconvenience of LP tanks
Privacy to grill, eat and party in the back yard
Freedom to have people over and not worry about disturbing neighbors
Fewer annoyances from neighbors
Land and space around you that is yours
Freedom to landscape as you please
Freedom to garden if you wish
Freedom to paint and decorate as you please
Freedom to choose the appliances and plumbing fixtures you like
Freedom to crank up the stereo as you please
Freedom to vacuum and do laundry at any hour

No a house is no longer an investment today. But even so, once you’re older and on more solid financial footing it’s a joy to not have to write a rent or mortgage check every month.

Also as you get older the problems that crop up don’t seem to be as stressful. And with experience future problems are more foreseeable so the surprises reduce greatly in number.

I’ll take it!

 

[mieleforever]

I kind of agree with both of the abovementioned posts, as seeing we also bought a home about four years ago, we got it for a song but with that was a lot of repair work to be done and it also feels like we are not making a dent in all that is wrong with the house. I try to repair and fix but is not able too keep up.

But on the other hand it is much better than having to rent forever end live by somebody els's rules and regulations and theur choice of fittings and finishes. We have rented for a few years and there is always that fear of the house being sold and that you will yet again have to move.

And I also agree that it is nice work in ones own garden and chop and chance as you like.

 

[iowabear]

I'm sorry about your tree.  It's a shame to lose a good one, especially one you planted yourself.

 

There are definitely stressful periods in owning a house, particularly if you're single and have to figure it all out on your own.

 

In time (16 years) I have come to love my small and modest home.  I'm not sure I'm going to live in Iowa forever though and I dread the day I have to give it up and move back into an apartment.   I value peace and quiet more than anything so until I'm old enough to get into the 55+ units it's a big risk.

 

I hope you get good news on the AC.  Hang in there!

 

[ea56]

I know that it can be hard at times to be a homeowner Mark. But trust me, you are still young, in 20 years you will be thanking your lucky star that you choose to be a homeowner, if you still are a homeowner, and especially if you have managed to pay off your mortgage.

Yes, there will always be expenses in homeownership. But, think about this. We bought our present townhouse almost 24 years ago for $120,000, were fortunate to have been able to pay it off and now only pay approx. $600.00 per mo. to live here, between the HOA dues and the property tax.

Right now, a unit in our 20 unit complex just rented for $2500.00 per mo.! We would certainly not be able to afford this much rent, it would take the majority of our income. And as I write this, there is another unit, 7 doors down from us that is listed for $420,000.00, and they are going to get this or more for it! Thats quit a handsome return on our investment!

And even though we have stairs, if I could walk up and down them right after each of my two hip replacements, I have no doubt that I and my husband won’t continue to be able to do so. And if worse comes to worse, we’ll just have one of those stair lifts installed, it’ll be a darn sight cheaper and less disruptive than moving. When we moved here in Sept. 94’, I said when I finally left here for good, it would be feet first in a pine box.

Eddie[this post was last edited: 7/26/2018-12:12]

 

[vacerator]

Mark, there are pro's and con's

to everything of course. A single person can feel overwhelmed. It's quite a bit of upkeep. But having the privacy of a nice porch, yard, basement, etc. are worth it.
Your home owners insurance should cover the tree removal, fence repair, and patio. Don't plant such a big fast growing tree. Sounds like a silver maple. Don't plant another if it is. The roots go out all around and ruin patios, walks, foundations, sewer lines. They are prohibited here now. People planted them for quick shade. Red king, queen, or sugar maples are fine. Sugar maples will shed whirly bird seed pods.
Your new fridge should be good for about 20 years.
Save as much in the bank as possible for emergencies. There are free tutorials on youtube, etc. for many home projects. I used to watch this old house.
Maybe you'll meet a potential life mate who is handy even.
You have built equity now as well, in case you two decide to get a new place.
Calculated risk's are life processes.

 

[washman]

hang in there Mark

I know it can seem like the world is crashing in but I agree with Eddie and others.

 

Main thing I like is the modest size at 1047 sq feet, it works perfectly for me.

 

Plus there is equity being built ever year.

And privacy, to an extent, plus the joy of not having to live right next to a noisy tenant.

 

I can do a few things, some of I can't so I ask neighbors for help. We all try to pitch in and help one another.  What I cannot do I pay to have done.

 

So don't give up the ship. Just make sure you find a good contractor for your AC.  Don't let the buffalo  you into thinking your whole system needs replaced.  I too recommend youtube vids, there are a wealth of real time and free information.

 

[rp2813]

Stick With It!

You won't regret being a homeowner in the long run.

 

Ours is an extreme case in an exceptional bubble, but in 1990 we paid $245K for a 1300 sf 3/2 tract home from 1957 that had never been loved.  We were stretched thin financially.  No travel, no big spending.  Money was tight.  The market was flat for a few years, but finally we started to build equity.  We remodeled the kitchen but only updated one bathroom, and did cosmetic work inside and out, along with putting on a new roof.  We sold in 2008 for $729K and had nearly 500K to work with, some of which had to go towards paying off my mom's HELOC and Medi-Cal balance for her skilled nursing expenses. 

 

We were able to buy out my sister's half of my family home which is on a desirable street in a nicer part of town but it needed a ton of work.  Our mortgage balance was only slightly higher than we had at our previous place.   A little over a year later, Dave had his big stroke, so our plans for that house were placed on what turned out to be permanent hold.  Last fall I decided that we needed to bail out and find something smaller and all on one level for Dave.

 

We sold this past April for $1.425M and bought a new place that needs next to no work at all for that same amount.  Our mortgage balance is a little over $300K, and the monthly payment is only about $100/mo more than we were paying before (we were over-paying each month, which added to our equity).  Needless to say, we wouldn't have a seven figure cushion now if we hadn't jumped in feet first back in 1990.

 

Although this extreme example occurred in a crazed-market vacuum, real estate will always be the best investment you can make in pretty much any part of the country.  Don't get discouraged.   In spite of the current expenses you're facing, home ownership will reward you nicely.  And you can take that to the bank!

 

 

 

[vacerator]

Also if the storm damaged your a/c,

claim that as well. Life happens. If they hike your insurance, wait a year then dump them.

 

[lakewebsterkid]

Mark

Sorry to hear about all of your troubles. However, I disagree. Homeowners invest money every month that you will eventually end up getting back. We purchased our home on a short sale for a very low price. We have turned the house around completely. If we sell the house after just 8 years of ownership, we will likely make $60k versus the purchase price. This does not include the money that we will get back for making payments every month. If we were to rent, the monthly payments would never be returned. Thus, for us it is an investment. Since I have lived here my mechanical skill has skyrocketed. I can use the internet and youtube videos to help fix nearly anything. Don't give up on yourself. Take care!

 

[ea56]

“Since I have lived here my mechanical skill has skyrocketed. I can use the internet and youtube videos to help fix nearly anything.”

This has absolutely been my experience too. And You Tube is the best! I can learn to do just about anything around the house by watching a few videos on whatever I need to do. Since we’ve lived here I’ve learned how to do the basic plumbing work and basic electircal work. I know my limitations, but I sure know more about DYI than I ever thought I would. And I’ve really enjoyed doing these repair/projects too.

And its so true, every month that you make a mortgage payment instead of a rent payment, you are paying yourself. If you think of it that way it helps to offset the sting of those emergency replacements for water heaters, furnaces/AC, refrigerators and the like. Even though its some times a hardship when these things come up unexpectedly, but in the end they are yours and add value to your investment by keeping it in proper repair.

When we were still renting we had one landlord who refused to repair the roof/gutters and as a result we eventually had to move, because the lath and plaster walls were growing mold. If it had been our home we would have repaired the problem just as soon as it became apparent. That move was an expense that we didn’t count on either, and we got zip back for the expense, except a bedroom without moldy walls.

Eddie

 

[wayupnorth]

Oh ya, my mechanical skills could write a Popular Science book now after nearly 50 years of keeping up with properties and tenants. Finally, I sold off all my rentals at a nice profit and live right where I love and own free and clear now. And I could sell this view for a real big pretty penny now. Home ownership will pay off in the long run

 

[good-shepherd]

I'm sorry about your tree.

The heck with the tree.

A young woman was just killed here when a tree fell on her car in one recent storm, the passenger was in the hospital for many weeks. Same thing happened to a husband and wife about two years ago, with their kids in the back sea no less, just to name a few. Not to mention the property damage and extended power outages from trees falling on power lines

Way too many old rotten and/or dangerous trees around here.
N.J. really needs a serious tree clearing effort which will never happen because of the costs and the likely outcry from the tree hugger crowd.

 

[helicaldrive]

Hope you feel better soon, Mark

It is stressful at times like now.

But there will be brighter days again.

If you have to get a new air conditioner, you will be pleased with the lower electric bills and how much quieter it will be.

If you do have to buy a new one, check out the brand Payne. It is the same great quality as Carrier but substantially lower in price. Very quiet too.

Several years after I bought my house I had to take down a silver maple that shaded the brick patio in the back, and a beautiful Bradford Pear in front that gave me complete privacy from everything and was like walking through a songbird sanctuary. Alas, any experienced homeowner knows both trees are prone to coming down in storms. I finally decided to have them taken down when it was clear they were going to come down anyway. When they were taken down, it literally made me ill, I was so heartsick. I didn’t even want the house. But in a little time I decided upon another tree to plant and I am very happy again. And now I wouldn’t want to go back to cleaning up all those helicopters and knee deep leaves from the silver maple.

You will find a better type of tree to plant. Take your time choosing. Most trees cause an inconvenience of some sort, like acorns, sweet gum balls, dripping sap, etc. but after you make a choice it will grow faster than you think and you will be happy again.

 

[frigilux]

Mark, all the reasons you mentioned--and several more--are why I decided to sell my house and downsize to an apartment. Like you, I am not a handyman (nor do I have any interest in becoming one), so I enjoy not having to worry about repairs/upkeep, anymore.

The biggest mistake homebuyers make is thinking "Oh, my mortgage is only $1,000 a month!" A person has to put several hundred dollars away in saving every single month to stay ahead of the expenses involved in owning a home. My house was fairly small, but having it reshingled cost over $6,000. Replacing the back yard privacy fence cost $2,800. Unless you are a do-it-yourselfer, you have to sock away thousands of dollars to handle upkeep. The city put in new sewer lines and a concrete street on my block and it raised my mortgage by $115 a month for 10 years. Things like that happen.

Having said that, I am older than you and part of the rationale for downsizing was to prepare for retirement. If you have the money to maintain the house, I agree with the others who encourage you to stick with it--at least until it is paid for (or nearly paid for). You'll get the most out of it when you sell it. In the meantime, best of luck; and here's hoping you have a year of low-cost maintenance ahead of you.

 

[helicaldrive]

Yes that is very true

You do need to set aside a few hundred dollars every month for repairs and maintenance, or else credit card debt can mount fast.

It is a shame that people buying for the first time tend not to be advised well about how to figure out if they can truly afford a home.

 

[good-shepherd]

Home ownership will pay off in the long run

For some.

For others it can be a major money pit.

One either has to be a serous DIY'er and/or in the position to write big checks from time to time.

Even being a good DIY won't help much when you need a new roof or HVAC system, driveway repaved, massive trees removed and so on.

Not arguing against homeownership mind you, simply that it can be very costly these days, building material costs are way up and nobody works cheap.

 

[iowabear]

Wants vs Needs

Home ownership is like anything else, it pays to distinguish between wants and needs.

 

Furnace/AC replacement = Need.

Roof leaking = Need.

Exterior paint = Need.

Window rotting out of frame = Need.

Tiles behind shower leaking = Need.

 

But so many expenses new homeowners take on are cosmetic Wants.

 

One woman told me she didn't save "all that money for a house so she could live in dump" as she was telling me about her improvements (paid for with loans.)  And her house was anything but a dump.  But it didn't look like the ones she watched on HGTV.

 

One of my friends gave me an excellent piece of advice when I bought my home.  He said, "You are buying an older home and it will not be perfect.  But live there a few months before you spend any real money because the things that you think will bother you now may not bother you in time and you may find other things that need attention more."

 

[ea56]

Re: Reply #17

“You are buying an older home and it will not be perfect. But live there a few months before you spend any real money because the things that you think will bother you now may not bother you in time and you may find other things that need attention more."

This is some of the best advice any potential home buyer can get!

When we bought our home almost 24 years ago, all the flooring was OK, but not what we really wanted. However, we were unable to afford the expense of replacing all of it, unless we put it on credit, which we both refused to do. Instead, we waited until the mortgage was paid off, and saved the money to pay for the replacement in cash. So, we had to live with badly worn kitchen floor and carpet in the downstairs that was clean, but way beyond its useful life. And I would do the same thing all over again.

When we watch these House Hunter shows on HGTV, almost without exception, the potential buyers want to completly redo everything, even the stuff that has been recently updated for preparation to sell, because “its not our style”. This is why many people today are house poor, without two nickles to rub together, mortgaged to the hilt.

In our area, even 30 years ago, a single family dwelling was out of the reach for anyone in our income bracket, unless you want to be perpetually in debt. So, our first home was a one bedroom condo, 630 sq. ft. We lived there for 7 years to build the equiity to move to the larger 1260 sq. ft. townhouse we’ve owned for 24 years. Part af the reason that condos are more affordable for people in our strata, is because the exterior maintenance is covered by the HOA dues, so the homeowner doesn’t have to come up with large sums for needed repairs. But condo living isn’t for everyone. Fortunately, our assc. has only 20 units, on parklike grounds with lots of beautiful trees. And everyone gets along.

The downside for me personally, is that I’ve been on the HOA board for 23 of those 24 years, Pres. for about 18 of those years. Its a lot of responsibilty. I’ve overseen the residing of all the buildings, re roofing twice, at least 5 different fencing projects, untold numbers of emergency plumbling repairs,(we only have one water meter for the whole complex) so when there is a domestic water leak, we have to turn off the water for everyone until its fixed, and I go door to door to let everyone know. I’ve overseen the trimming of the 41 trees annually, the list goes on and on. I’m lucky to have a great relationship with our property management company, who we’ve used since 96’, and I’m on a first name basis with everyone there. I’ve taken pride in doing this volunteer job all these years, but I sure wish that someone else would step up to the plate. At least everyone hass been happy with my decisions over the years, and I always get reelected unanimously, a dubious honor, LOL.

Eddie