People say real estate is a goof investment over the long haul. I’m not so convinced as a millennial who could possibly move in a few years. The Dallas housing market is also on fire. Some homes are selling within 48 hours. This wasn’t the case when my ex-partner and I bought our first home in 2012. Everyone’s gone mad since.
Some of the fees I don’t have to worry about as a non-home owner:
- Maintenance – Roof, hot water heater, foundation, hail damage, floods, plumbing, HVAC
- Housing Association / Transfer Fees
- Property Taxes
- Mortgage Interest
- Alarm / Security
- High utility bills – more square footage means higher bills to heat / cool
- Closing Fees
It just seems to me that in many instances, the overhead doesn’t guarantee you will end up ahead. I also have friends who were caught in the housing bubble and had to do short sales.
The main appeal to me with home ownership is saying I own a piece of land / property, having my own garage and know that over the long term my money is building equity and not making someone else wealthy.
On the other hand… The homes I would consider are close to 200k. With a 20% down payment that would be $40k of up front costs. I can see the value if you have a family. For a single guy with my income it doesn’t make sense. So I’ll keep renting unless all of a sudden it becomes a buyer’s market again. The main appeal to me is a garage but that’s just because I’m a geek and like to fiddle with things in a garage lol.
Maybe I will buy someday. Just after 3-4 years after I’ve put enough aside. My rent is $800/mo now. If I save that for 4 years that’s enough for a down payment on a home. Even on a home that needs work I still think the overhead would be more than rent.
Rhetorically, there is a certain level of pride that comes along with saying “I am a home owner”, but also a high amount of stress. Everyone in my family who has bought one complains about the high taxes in New York, difficulty in finding tenants should you choose to rent and even then the troubles with evictions. Then the county comes up with more and more fees / surcharges that just makes you feel like a slave instead of a financially prosperous individual.
Here’s an interesting article from 2014 :