Anyone retire without ever owning a Home?

[ER Man]

Did anyone retire without ever owning a Home? Is this a good idea?

What do you think of millionaires who never owned a home?

Let's say you don't have any kids and don't plan to have any.

[mystang52]

M'gosh I'm sure there are multi-millions who had a nice retirement without ever owning a home. My father, for one - never made a lot of money, never owned a home, and had a very happy retirement.

[ER Man]

Quote:

Originally Posted by mystang52 M'gosh I'm sure there are multi-millions who had a nice retirement without ever owning a home. My father, for one - never made a lot of money, never owned a home, and had a very happy retirement.

Right. I guess they end up paying cash for a a modest home after retiring and treat it as a disposable item which means it would not matter what the value of the home was as long as they are happy there?

[Lisa99]

a similar question might be 'how many have retired with no equity in their home' since in the past people have used the equity to downsize and feather their nest egg with the house sale proceeds.

We've been home owners for 20 years (4 different houses) and when we retire there will be almost no equity in our house.

[ER Man]

Quote:

Originally Posted by Lisa99 a similar question might be 'how many have retired with no equity in their home' since in the past people have used the equity to downsize and feather their nest egg with the house sale proceeds. We've been home owners for 20 years (4 different houses) and when we retire there will be almost no equity in our house.

This can mean they bought a home and could be 'underwater'?
Do you think you would have been better off without any of those houses?

[Lisa99]

Quote:

Originally Posted by ER Man This can mean they bought a home and could be 'underwater'? Do you think you would have been better off without any of those houses?

Financially, probably.

But I have an aversion to renting. I don't want to have to ask to paint a wall or put a nail in the wall to hang pictures. Also, we have two large dogs so renting would be difficult.

[W2R]

Quote:

Originally Posted by ER Man Did anyone retire without ever owning a Home? Is this a good idea? What do you think of millionaires who never owned a home? Let's say you don't have any kids and don't plan to have any.

How about you?

Do you own a home?

Do you plan to own a home?

Why or why not?

If so, do you plan to downsize at some point, and when?

Do you plan to pay off your mortgage?

What are your thoughts on these matters?

I'd be interested in seeing some contribution to the thread from you, as well. Thanks.

[ER Man]

Never owned a home. I am not sure if it will be worth it to own one for investment purposes?

If I did buy a home, it would be around the $125K ballpark price.
I would like to pay down 50% of that amount and then pay the rest off in 10 years or less.

Downsize for what?




Is is worth it to be like 50% down?

Quote:

Originally Posted by W2R How about you? Do you own a home? Do you plan to own a home? Why or why not? If so, do you plan to downsize at some point, and when? Do you plan to pay off your mortgage? What are your thoughts on these matters? I'd be interested in seeing some contribution to the thread from you, as well. Thanks.

[REWahoo]

Quote:

Originally Posted by ER Man Never owned a home. I am not sure if it will be worth it to own one for investment purposes?

Why not?

Quote:

Originally Posted by ER Man If I did buy a home, it would be around the $125K ballpark price.

Why $125 and not $150?

Quote:

Originally Posted by ER Man I would like to pay down 50% of that amount and then pay the rest off in 10 years or less.

Why 50% and not 40% or 60%?
Why 10 years and not 15?

Quote:

Originally Posted by ER Man Is is worth it to be like 50% down?

Is it worth it to who, the buyer? The seller?

[W2R]

Quote:

Originally Posted by ER Man Never owned a home. I am not sure if it will be worth it to own one for investment purposes? If I did buy a home, it would be around the $125K ballpark price. I would like to pay down 50% of that amount and then pay the rest off in 10 years or less. Downsize for what? Is is worth it to be like 50% down?

Your thoughts on this make sense to me. To me, a home is not an investment so much as a place to live. I bought an inexpensive home too, and paid it off in 4 years, much as you are suggesting. It's nice to have no mortgage payments or rent in retirement, but owning a home makes it much more difficult to move elsewhere if there are problems selling.

[ER Man]

I am Frugal and want to buying a modest home in a modest fairly safe neighborhood.

Any benefits of buying a $150K home?
The quicker you pay the better right?

Keep in mind, I also invest in the stock market.
Whats a good down to put down? Pay all cash?

I would be the buyer.

Quote:

Originally Posted by REWahoo Why not? Why $125 and not $150? Why 50% and not 40% or 60%? Why 10 years and not 15? Is it worth it to who, the buyer? The seller?

[Midpack]

[brewer12345]

It depends. I think own vs. rent is mostly a lifestyle decision. It can also be a simple choice based on which is cheaper. When I bought my condo in '98, it was a lot cheaper than renting. The house in '02 was about break-even. When we bought this year it is again cheaper than renting.

If you buy, put down the min to get the most favorable rate (20 or 25%). /you will still have the extra cash, so you can de-lever at any time and at current mortgage rates it is a cheap option.

[ER Man]

What if I can pull a long term renter and also live in my home?

Well, you will still have 'other' expenses even after the mortgage is paid off.

Quote:

Originally Posted by W2R Your thoughts on this make sense to me. To me, a home is not an investment so much as a place to live. I bought an inexpensive home too, and paid it off in 4 years, much as you are suggesting. It's nice to have no mortgage payments or rent in retirement, but owning a home makes it much more difficult to move elsewhere if there are problems selling.

[ER Man]

You have to consider other costs also not just the price of home. 20% down is minimum? 20-25% interest rate?

Quote:

Originally Posted by brewer12345 It depends. I think own vs. rent is mostly a lifestyle decision. It can also be a simple choice based on which is cheaper. When I bought my condo in '98, it was a lot cheaper than renting. The house in '02 was about break-even. When we bought this year it is again cheaper than renting. If you buy, put down the min to get the most favorable rate (20 or 25%). /you will still have the extra cash, so you can de-lever at any time and at current mortgage rates it is a cheap option.

[brewer12345]

Quote:

Originally Posted by ER Man You have to consider other costs also not just the price of home. 20% down is minimum? 20-25% interest rate?

I did consider all the costs at each juncture. 20 to 25% down is what you need to qualify for the best rates. 30 year fixed mortages are going for a bit over 4% at the moment,

[ER Man]

Quote:

Originally Posted by brewer12345 I did consider all the costs at each juncture. 20 to 25% down is what you need to qualify for the best rates. 30 year fixed mortages are going for a bit over 4% at the moment,

Anyway to get like 5 years no interest? I heard people are getting 2.99%.

[pb4uski]

Suggest that you think of as home as a place to live and not as an investment, particularly in these times. I don't see 2.99% in our area, but a 30 year fixed at 4% is doable. Some of the decision depends on your time horizon as well and the degree of flexibility you need. It is a lot easier to move somewhere else if you rent than to sell.

Compare your costs of principal and interest, property taxes, insurance, maintenance and the lost earnings on your downpayment to what you would pay for rent in making the decision, but don't forget that mortgage interest and property taxes are tax deductible (for now). Best of luck.

[brewer12345]

Quote:

Originally Posted by ER Man Anyway to get like 5 years no interest? I heard people are getting 2.99%.

I would suggest spending some quality reading time at the mortgage professor's site: The Mortgage Professor

[ER Man]

Both could be bad decision but you still need a place to live.

The goal for me is to throw away less money in choosing the two overall.
If I continue to rent then the rent will be a lot cheaper and I can continue to use the saved money into my retirements accounts and after-tax brokerage accounts.

I thought the interest rates are based on individual credit not location?

Quote:

Originally Posted by pb4uski Suggest that you think of as home as a place to live and not as an investment, particularly in these times. I don't see 2.99% in our area, but a 30 year fixed at 4% is doable. Some of the decision depends on your time horizon as well and the degree of flexibility you need. It is a lot easier to move somewhere else if you rent than to sell. Compare your costs of principal and interest, property taxes, insurance, maintenance and the lost earnings on your downpayment to what you would pay for rent in making the decision, but don't forget that mortgage interest and property taxes are tax deductible (for now). Best of luck.