Poll:Rent vs Own

[clifp]

It is been a while since we've had this poll.
If you have definite plans to change your status in the next year, e.g retire downsize and rent a place, answer the poll with the new status.

 

[turbo89]

I went through this decision when I purchased my first house a few yrs back.

I ultimately made the decision to buy, because of cheap interest rates, houses and because rents were ~ 30% more than my current mortgage/tax bill is, for something approximately the same.

 

[Car-Guy]

Own my own home and land. Haven't paid any rent or house payments in over 20 years now.

 

[Buckeye]

My plan was to rent but DH and my mother out-voted me. I admit it was time to combine households (mom is almost 82 but physically much older since she smoked for 65 years) and the apartment complex was getting greedy with their rent increases. The house we bought is the perfect layout for not killing each other and we caught the mortgage rates at the bottom.

As long as mom is around to pay half, our monthly expenses are a wash compared to living in the apartment. Using my VA loan with no funding fee and a lender referred by Costco, all non-recurring acquisition costs were covered by the lender's rebate (they rebate the broker fee). We had to pay two month's rent to finish our lease but moving costs were only about $600 because we packed our own boxes and drove the UHaul. We hired pro labor to carry stuff down from the 2nd floor and safely load the UHaul.

I'm done moving!

 

[OrcasIslandBound]

I've heard too many horror stories about people being kicked out of their home that they have been renting just, coincidentally, when they are struggling with some sort of health issue. Seems like a bad deal, especially if the plan is to stay put for a long time. On the other hand, if you aren't sure that you wish to live in your selected location, renting is probably a good idea. We're definitely on the prefer to own side,even to the point of buying the future retirement house a few years ahead of when we intend to retire there, and using it as a rental in the meantime.

Sent from my Nexus 4 using Early Retirement Forum mobile app

 

[pb4uski]

I am retired and we own our home in New England but we also rent in Florida for a few months during the winter.

We're considering buying in Florida as well but for a few months a year renting looks fine to me.

 

[bclover]

plan on doing both.
The house I own now is a 4 story townhome, lol eventually the old knees are going to give out and I'll move.


I have no desire to ever buy another house again, so I'll rent my next house. Plus I want to eventually retire to a beach house.
no way am I buying then stressing about hurricanes, flood insurance and extra upkeep?


I have to get a new roof next week on my house. 8K. I am so over home ownership

 

[brett]

Sold our home three years ago after 35 plus years of home ownership.

It is so very liberating to downsize and rent. We planned to buy something a year or so later but the numbers did not make sense. We have done far better investing our sale proceeds in the market than we would have done holding on to the house. Not to mention the operating costs that we saved.

 

[calmloki]

We have north and south homes that we own with PenFed. We have enough money in savings accounts to pay off the mortgages, but that also serves as an oversize emergency fund and allows us to invest all the remaining doss.

 

[hnzw_rui]

Not retired yet and we rent. Real estate is expensive here (LA Metro) so even if I would like the "security" of home ownership, I'm not sure I'd appreciate having a huge mortgage debt hanging around my neck particularly given PITI will reduce savings big time.

 

[Aiming_4_55]

My vote: I am not retired and I rent. We are a few (maybe 4) years away from RE, almost FI if we stay in CA, but FI if we move back to the Midwest.

For a 3 bedroom condo in a beach city, our monthly rent is $2,500. If we purchased with 20% down, monthly mortgage, hoa, taxes would be $2,750. Sure, about $500 would go toward the principal and there are tax benefits, but I think renting is our best choice for now. Break-even is about 6 years per the rent vs. buy calculators. Not confident that real estate prices can continue to climb as fast, but I can be wrong.

If we were back in the Midwest, we would boot our tenant and reside in our mortgage free 4 bedroom home.

 

[bingybear]

my opinion ... no right answer. just a status... own. Don't know what we will do long term

 

[Danmar]

We own. All about control. Costs more but worth it.

 

[Tree-dweller]

We own the same paid-off "starter" home we moved into 30 years ago. We decided we'd stay and just start paying to tend to those tasks that we find we are no longer willing or able to do. Like Pb4uski and others, we may rent in sunnier climes for a month or two, but I look at selling then renting a primary residence at this point a little too much of a roll of the dice for future costs. So we own. For now.

 

[donheff]

DW and I own the home we have lived in since 1982. We plan to age in place here so will remain owners. If we moved elsewhere we would likely rent for at least a while and possibly permanently. The proceeds form the place we live in would fund luxurious rentals for as long as we might live. I would like to be able to hand off all of the maintenance and tax burdens of home ownership. I would view renting (in the appropriate place) as akin to an all-inclusive vacation. No constant nickle and dime decisions about things that need to be done around the house. Just call the super.

 

[Balance]

I agree with many that rent vs. own depends on the location and circumstances and I have done both. Renting was a lot less hassle but never felt settled. We are semi-retired and own our home outright for the last 7 years. Did a full renovation 5 years ago and set it up for 25 years of little maintenance. We live in a very unique area (island) where home appreciation has been averaging around 5% annualized over the last 15 years. There is a couple of homes in the area comparable in size but not updated that rent for $2,500 to 3,000 per month. Our total operating cost including utilities and a theoretical sinking fund for maintenance is 1,000 per month. If I had never bought and renovated but instead put the proceeds in the market I would be a little ahead right now. However, I look at it as part of my asset allocation and I like knowing I don't have to move if I don't want to.

 

[Music Lover]

I've lived in the same house since 1997...retiring March 2016, and have no plans to move.

 

[OrcasIslandBound]

I bought the house we're presently living in back in 1982 when I was 24 years old. Not only has the house appreciated by about 4% per year (bought for 95k,now worth 510k) but my payments have not gone up. They were about 1k a month before it was paid off 4 years ago. This house would rent for 2.5k a month today. So we've had lots of years of low cost housing because of this decision. One might say we're pretty strong voters for ownership.

Sent from my Nexus 4 using Early Retirement Forum mobile app

 

[Buckeye]

DW and I own the home we have lived in since 1982. We plan to age in place here so will remain owners. If we moved elsewhere we would likely rent for at least a while and possibly permanently. The proceeds form the place we live in would fund luxurious rentals for as long as we might live. I would like to be able to hand off all of the maintenance and tax burdens of home ownership. I would view renting (in the appropriate place) as akin to an all-inclusive vacation. No constant nickle and dime decisions about things that need to be done around the house. Just call the super.

Yes, I do miss calling Maintenance to come fix this or that and sending them out the door with cookies instead of a check for $500 which was the cost of our first call to a plumber. Houses are hungry beasts. We are on a first name basis with the folks at our local Home Depot. At least it's just around the corner!

 

[VFK57]

DW and I own our home. Own or rent depend on many circumstances yet in retirement it is better to own in order to secure a major fixed expense. Of course there are unpredictable maintenance but when you rent and have higher than normal maintenance, a landlord would transfer it on you with any other possible, unpredictable expense.

 

[kcowan]

We downsized in 1995 and rented a penthouse that is on First Nations Land. So it has a 99 years lease that cannot be passed on. So we are renting at about 60% of market value ans still cannot justify any change. Our house proceeds were invested and have been doing very well thank you.

In 2007, we purchased our snowbird condo that we inhabit for 6 months and leave empty the rest of the year. We do rent our penthouse for the 6 months we are away. After 7 years, we have it down.

Last year we tried to buy a place in Vancouver but we were reminded why we liked renting. It is true that we lose some tax advantages but we find they do not compensate for the market advantage that we still have.

Why do you ask? It seems that there are so many extenuating circumstances, it is impossible to reach any conclusions.

 

[W2R]

I own my home free and clear, and intend to never move again in my life if I can help it. With any luck I will stay here for the duration. Moving into this home last summer was much harder (physically) than I had remembered moves could be so I'd prefer to never move again. Besides, I love my Dream House and want to stay put.

I get a lot of satisfaction out of owning a nice home that is just exactly what I desire, want, and need, with everything just the way I like it. But more importantly, I love knowing that I can stay here in this lovely and oh-so-convenient home forever if I want to, barring the unforeseen. I am someone who seeks roots, not travel, as you all know, so my desire to own my home should be no surprise to anyone here. I can afford to own my own home free and clear, and for someone like me this is the best use of my money. YMMV and for many does. That's great! But I have to go with what works for me.

I don't do any maintenance at all and haven't since I retired. No excuses; I am sort of old (67), and I have never been any good with manual labor anyway so why not leave it to those who are? My solution is to hire people to do all the same stuff that an apartment manager would hire somebody to do. It's not been a problem and it hasn't been expensive either since nearly everyone in this area seems to want these small jobs. However I do have to actually take the initiative to call someone to get the work done. That is the primary downside of maintenance AFAIK.

Interesting poll results!

 

[Buckeye]

I own my home free and clear, and intend to never move again in my life if I can help it. With any luck I will stay here for the duration. Moving into this home last summer was much harder (physically) than I had remembered moves could be so I'd prefer to never move again. Besides, I love my Dream House and want to stay put.

Like you, I found the physical side of moving harder than the prior move six years ago. It was an extremely hot summer in Central Florida (moved from Tampa Bay to Orlando area, hot to hotter) which I think was a contributing factor. I also found the mental toll greater which I think was related to moving from an apartment (no responsibility for the upkeep) to a house filled with things that break and grounds that must be maintained (including the pool). It added a huge amount of stress which is now dissipating after 5 months as I get comfortable with the house and its needs.

Being in the house during the summer's torrential rain storms was very nerve wracking and brought out my hurricane PTSD from 2004 when we got pounded by 3 hurricanes while living in Lakeland.

 

[CaliforniaMan]

I know situations differ, but I cannot understand retiring without owning your own home. And I mean owning free and clear. I is just a security issue for me, my backstop should all else fail. After owning your home, then travel, rent from time to time, do what you want, but you always have your own home. Not owning a home is just living too close to the edge for me.

 

[DEC-1982]

I own a house. We had planned to move to a smaller house next spring/summer to reduce maintenance costs but now that looks like it is off for a few years.

Renting looks very attractive because I could escape from house maintenance costs and hassles. Maybe "the other side of the fence looks greener" syndrome ...