AnnetteLouisan wrote: ↑Fri Jul 01, 2022 9:20 pm
stoptothink wrote: ↑Fri Jul 01, 2022 8:04 pm
HMSVictory wrote: ↑Fri Jul 01, 2022 4:19 pm
barberakb wrote: ↑Fri Jul 01, 2022 3:58 pm
FreddieFIRE wrote: ↑Thu Jun 30, 2022 6:01 pm
Not really. Other than the fact that I could easily own but instead choose to rent. I have owned many more years than I have rented. I have owned a fully paid off house for many years. Now, I rent. Life is getting shorter by the day and while I have time to deal with home ownership, I choose not to.
You are most likely the outlier not the norm...
I rent to a lot of people, most of them talk about wanting to own or even ask me if I will sell to them. Almost all of them don't buy because they can't afford the down payment / recurring costs
My mother is a multi-millionaire and choses to rent..... its a nice place though! I would agree she's an outlier but in the 55+ community renting can have a lot of benefits including living in a nice community.
I'm a multi-millionaire too and would probably prefer to rent (although we own), but I am all but certain your mom and I (and FreddieFire) are outliers.
Ramit Sethi’s podcast this week targeted homeownership in a withering critique. He pointed out that mortgage interest can double the purchase price of a home with no equity being built for 15 years given amortization, plus closing costs, taxes, and repairs. Worth a listen whether or not you agree.
* There are many approaches to paying off a note early: e.g., make 1 extra payment per year (or 1/12th per month). Round up each mortgage payment.
https://www.thepennyhoarder.com/debt/on ... nt-a-year/
* The yearly financial benefits of home ownership are attractive to many investors: mortgage interest deduction, property tax deduction,
* Exclusion of $500k from gross income when selling home MFJ ($250k if single).
https://www.law.cornell.edu/uscode/text/26/121 (This is a substantial benefit.)
* Home equity can be tapped in retirement (e.g., reverse mortgage)
* Some homeowners view their home as "forced savings" and enjoy the equity they've built up. (Not all investors are regimented to the point of investing after-rent $ into The Market.)
* Home ownership gives greater control over day-to-day accoutrements (e.g., free to choose your own appliances, renovations/improvements, paint color, etc.) A home can be customized to your liking, as opposed to most rental situations.
* A fixed-rate mortgage protects against inflation-related rent increases that can be faced by non-homeowners.
* Generally speaking, home ownership provides more privacy than rental situations.
*Some people feel that renting is a better fit for them, some for the long-term. They like the greater mobility vs home ownership. They understand that their rent provides them a place to live, and in exchange the rent they pay helps cover insurance, taxes, maintenance, any remaining mortgage payments on the property, plus profit for the landlord. The landlord is not running a charity.
* OP should definitely think about a HELOC (interest often tax-deductible)
https://www.irs.gov/newsroom/interest-o ... er-new-law
Retirement is best when you have a lot to live on, and a lot to live for. * None of what I post is investment advice.* |
FIRE'd July 2023