Comments on riveting rosie: Another Side to Renting

I agree, many of us in our mid-20's can afford to ...

2008-04-10T18:53:00.000-04:00

I agree, many of us in our mid-20's can afford to mortgage a house, which in my opinion is not actually buying.

My folks didn't buy a house until they were in their 50's (we could only rent houses when we lived abroad) when they did so with straight-up cash. That'll still give them many years of appreciation before they decide to sell.

The pressure to buy (mortgage) is false, and renting is not wasting, it is simply cheaper and more stable.

There's a reason that homes are called money pits....

2008-04-10T17:18:00.000-04:00

There's a reason that homes are called money pits. Sure, you make an investment, but they are also ongoing expenses. From the minor (buying curtain rods) to the major (replacing worn-out appliances, leaky roofs, broken garage doors) it never ends. Then there's property taxes, homeowner fees, insurance, yard maintenance, etc. It's a huge responsibility, and often very stressful. It usually takes about 25 years to really earn back your investment, and this market has been very unusual in that respect. My feeling is that when it's time to own, you'll know it. Don't feel pushed or pressured into it before then.
Anita Bruzzese
www.45things.com

Thanks for stopping by Murphy! You're very right i...

2008-04-09T23:30:30.237-04:00

Thanks for stopping by Murphy! You're very right in the appreciation - IF the house goes UP in value. Which hopefully it will. Good points! Thanks for the comments!

Renting has its benefits. I waited until I was 32...

2008-04-09T23:27:00.000-04:00

Renting has its benefits. I waited until I was 32 to buy a house. Until then, I used to brag that I could leave in the middle of the night with all my key belongings in my car. And I did. I went to Ireland for a year - the best career move I ever made.

I have my second house now, in Elizabeth, and it's accumulated a lot of value. A lot of that is luck, look at the rest of the country. But I say this because it's not just that rent is throwing money away, it's missing out on how much a house can appreciate under normal circumstances. It usually wipes out the hidden costs.

That said, the hidden costs are real, and you have to have cash on hand to deal with them. You could get a second mortgage if things got really bad, but it's a slippery slope.

Bottom line - you're smart. YOU will know when the time is right for YOU.

ps -spotted you on Twitter