tag:blogger.com,1999:blog-3851322133816062332.post6730969691893319810..comments2023-06-02T02:58:00.488-07:00Comments on i pick up pennies: A house shouldn't be a priorityAbigailhttp://www.blogger.com/profile/12043674506776005070noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-3851322133816062332.post-80533919685884417522009-06-05T11:57:41.637-07:002009-06-05T11:57:41.637-07:00Thank you thank you thank you!
We are raised with...Thank you thank you thank you!<br /><br />We are raised with this stupid American dream - central of which is buying a house.<br /><br />I have no use for a house - at least one I'm not paying cash for. If you have a mortgage you don't own a house - you rent-to-own it from the bank.<br /><br />I think if people really look at the cost of a mortgaged house, including all the maintenance and repairs - they would be surprised to find how 'ahead' they really are.<br /><br />I will only consider buying if I have the cash to buy it outright. Which means in addition to a fully funded retirement.R. Maynoreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-8734769739805830032009-05-20T01:06:19.541-07:002009-05-20T01:06:19.541-07:00Shevy,
Yes, sorry, I was being a tad America-cent...Shevy,<br /><br />Yes, sorry, I was being a tad America-centric. I don't know much about housing in other countries. I hope it is that easy for you folks. Goodness knows, with Tim's and my health, we may have to flee to Canada one day anyway!Abigailhttps://www.blogger.com/profile/12043674506776005070noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-47310295454401256712009-05-19T11:55:00.000-07:002009-05-19T11:55:00.000-07:00FB,
Glad to know that even opposite genders can ...FB, <br /><br />Glad to know that even opposite genders can cohabitate without bloodshed or mental scarring.<br /><br />As for the comments, thanks for bringing them to my attention. I just sort of guessed about things when I set up this blog. Never revisited them. From now on, the moderation is off. If that creates too much spam, I'll reinstate it and turn off word verificationAbigailhttps://www.blogger.com/profile/12043674506776005070noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-62374843100602547152009-05-19T04:19:00.000-07:002009-05-19T04:19:00.000-07:00I'd only buy a home if it had an emotional value f...I'd only buy a home if it had an emotional value for me.<br /><br />Such as having a backyard to BBQ in, a home I could paint or fix up and not say "that's not my problem"... and if the price made sense<br /><br />If not, I'm perfectly comfortable renting for my entire life. I don't have any qualms about that.<br /><br />Kids are resilient. They can live and grow up anywhere. I for one, lived for many years in the same room as my brothers because I was scared to sleep alone.<br /><br />We're SIBLINGS, not alien monsters just because we're different genders...<br /><br /><br />(any reason why you do comment moderation AND word verification? Isn't it usually one or the other?)FB @ FabulouslyBroke.comhttps://www.blogger.com/profile/12966672580040786485noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-24715862011894059492009-05-18T15:28:00.000-07:002009-05-18T15:28:00.000-07:00Interesting. I have a competely opposite outlook ...Interesting. I have a competely opposite outlook on this (for myself at any rate, as I can't say that ownership is necessarily right for everyone). Also, I'm in Canada, so many aspects you mentioned are different here.<br /><br />Our rural home is a major part of our retirement plan. We paid cash for it (under $30K) from the profit I made selling my starter condo. That money wouldn't have done much in our RRSP's (we only have 15 years left to retirement) but it gives us a paid-for place to live for the rest of our lives.<br /><br />We can live nicely in the rural area on $24K per year, whereas we'd need more than twice that to retire in the city. And, we'll have just about $24K from our Canada Pension Plan, Old Age Security and a tiny annuity from a previous employer combined. That doesn't include any income from our RRSP's (probably about $100/mo by the time we retire).<br /><br />So, we wouldn't be living the high life but we'd be okay. I'm not worried about inflation. The pension amounts are mostly indexed and our CPP amounts will be higher than calculated because we'll have earned more money in the intervening 15 years.<br /><br />We don't have to worry about medical costs. I think we can manage the $108/month it costs for a family and at some point that will drop down to the couples rate when Dear Child is an adult. BC also has a great Pharmacare Plan for all seniors. You end up paying about $5 per perscription.<br /><br />What else did I notice that wasn't applicable here? Capital Gains. There is no Capital Gains Tax on the sale of your principal residence in Canada (although there is for secondary homes and investment properties).<br /><br />We'd be in much worse shape in retirement if we had to rent. It always makes sense to run your own numbers and make your decision from there.Shevyhttps://www.blogger.com/profile/12360963999613712921noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-1406552506515859552009-05-18T12:22:00.000-07:002009-05-18T12:22:00.000-07:00Shtinkykat,
Yes, it is a certain symbol of having...Shtinkykat,<br /><br />Yes, it is a certain symbol of having "arrived," I suppose. Though there are some folks who argue it's just not worth their time/energy/headaches. Certainly, if I had my choice, Tim and I would have a nice little place, though. Being a renter can still sting, even when you know you're doing the smart thing.<br /><br /><br />DogAteMyFinances,<br /><br />While I think you're far too young to feel so bad for "still" renting, I do feel ya. There are times I long for a house. I want to be able to make my own decisions about our living space.<br /><br />And don't forget house appreciation is only tax-free up to $250,000 (and only if you've lived there consistently) per owner. That may seem pretty do-able, but my dad's mom lived in what was once a starter-home area in Newton Highlands, MA in the 1950s. She didn't sell until the early 2000s. I'd be willing to bet that appreciated something fierce. (And since she bought the house with her first husband, but later remarried, I don't know if her second husband's death reset the base house value or not.)<br /><br />So there is still the chance of Capital Gains Tax, especially if you end up selling either very far into the future or in the very short-term.<br /><br /><br />Mrs. MT,<br /><br />A house can most certainly be a practicality. And if it's within your budget, terrific!<br /><br />I think the biggest thing to remember is a) a house will beget other expenses, count on it and b) so long as you still have interest-bearing debt, you're essentially adding extra interest rates to your existing debt by taking out a mortgage. You simply need to run the numbers and see if it makes sense: Will you save enough by not renting (and by itemizing) to negate the pitfalls of remaining in debt? Can you get a mortgage with your existing debt levels? etc.Abigailhttps://www.blogger.com/profile/12043674506776005070noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-23488570003187459152009-05-18T11:59:00.000-07:002009-05-18T11:59:00.000-07:00A place to live is a necessity. What form it take...A place to live is a necessity. What form it takes, owned or rented, is a detail that should be dictated by what fits well into your budget and life plans. <br /><br />So I don't disagree with you. <br /><br />I think it's foolish to tie yourself to a huge purchase like a house if you have to sacrifice all your other savings in order to make the purchase and the subsequent payments. If that's the best it's going to be, then you're setting yourself up for a struggle just to stay in the house. And you can forget about being prepared or flexible in case of emergencies or unanticipated change. <br /><br />I'd say a house has always been a priority for me, but always a lower one than getting on the road to financial stability which includes cash savings, retirement savings, investments, and steadily increasing income. A house is not automatically your Home; it's pretty much just a roof + a mortgage/money sink if you buy based on an unrealistic budget that precludes saving for retirement or any savings at all. It's the equivalent of putting all your eggs into one basket.Revanchehttps://www.blogger.com/profile/07293868300535734672noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-71683107109507847812009-05-18T10:17:00.000-07:002009-05-18T10:17:00.000-07:00I completely lolled when I read this. I was just r...I completely lolled when I read this. I was just ranting to a friend the other day how parents these days seem to think sharing a room will scar kids for life. I seem to think they would put up with sharing a room if it means they didn't have to worry about their parents long-term care, retirement, or maybe even school loans.<br /><br />That being said, while I don't think a house is a necessity; I think it can be a practicality. I've been examining our options in Portland, and with housing prices dropping like they have, it might actually be cheaper for us to buy a house than it would be to continue renting.<br /><br />It kind of leaves me in a quandry. I don't know if I should buckle down and pay off the last of our debt or continue looking for the best ways to reduce our expenses, even if that includes buying a house. (Since neither my husband or I have worked for companies with retirement match we are already woefully inadequate in that department as it seemed better to pay off high-interest debt.)<br /><br />Luckily, my husband's new job will include benefits and a company match on retirement, so that should be a new adventure. :)Mrs. Modern Tightwadhttps://www.blogger.com/profile/03594519536137591554noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-92005099365825720832009-05-18T06:22:00.000-07:002009-05-18T06:22:00.000-07:00I totally agree with this, but for a different rea...I totally agree with this, but for a different reason.<br /><br />There comes a point -- and I'm there now -- when you just feel like a loser for still renting. You shouldn't have to ask if pale yellow is an OK paint color. You want to mount your flat screen. It might be irrational, but boy howdy is it there.<br /><br />You can justify it just the same, make examples that are very close to the retirement savings example using historic real estate appreciation, which is obviously iffy now as well. Plus, the house's appreciation is tax free.<br /><br />That said, I think retirement is way, way more important than a house. Maybe because I delivered too many Meals on Wheels to destitute widows in houses they would not leave.DogAteMyFinanceshttps://www.blogger.com/profile/02571124283388079010noreply@blogger.comtag:blogger.com,1999:blog-3851322133816062332.post-5814232625680270802009-05-18T06:00:00.000-07:002009-05-18T06:00:00.000-07:00Amen sister! I think another reason why people wa...Amen sister! I think another reason why people want to own a home is because it's an outside symbol of wealth and success. I don't own a home but I have quite a bit squirrelled away in my 401k, but no one will know. I try not to let the fact that I'm still a renter bug me, but I have to admit, it still does.Shtinkykathttps://www.blogger.com/profile/13463418160441246011noreply@blogger.com