Owning a home isn't a huge risk. I bought a home in 2007 and another in 2008. I already owned a home and didn't sell in a down market. I've moved 5 times since then.

I can't own a home because I don't want to call the plumber is a cop out. Some people just aren't financially responsible and they save nothing for emergencies.

Owning a home is cheaper. If I wanted to move I could just walk out and leave. I've done it before.

that makes no sense. A home is an investment. and there is NO INVESTMENT that involves no risk. The larger the investment, the larger the risk.

I didnt say I didnt want a home because of the plumber. I gave MANY reasons I do not want to own, the convenience of having maintenance be someone else's responsibility was only one.

I also gave examples of knowing those who did not have their situation end the way yours did.

so kudos to you and what YOU have done, you are not everybody, everybody will not have your experience. Im not sure why anyone would be so adamant that there is some guarantee that they will.

people are not staying in jobs for as long as mortgages run, people dont have the same job security to know what income they will have to cover a mortgage ten or even five years from now as a guarantee, and they also dont all live in a place where they can just grab up a dependable renter until things change, and those renters cant guarantee the financial situation that will remain the same over time.

any investment is a risk, none are guarantees. Im more interested in lower risk living because I know that I cannot predict what my financial situation may be down the line, because I have learned that life and the economy have no guarantees.

What made your friends sell during the recession? I had one friend who lost money. He moved 2 miles to live off his aunt. He wasn't concerned with being a responsible adult. He had ran up credit card debit and didn't want to stop dining out twice a day, shopping trip for women he was dating, going to the salon, newest iPhone, laptop, AR's, and movies. So he lost money.

My other friends kept doing the same thing they were doing before the recession was announced on the news. They made out like a bandit. The housing market will probably never get that bad again. Because supply is low.

I think it's a bad idea to buy as long as Trump is in office. The economy is great and it's inflating home value. If he isn't re-elected we will see an economic downturn. Homes will become cheaper for those who still have a job.

We are at or close to the top of the economic cycle. Everything is great and home prices have outpaced wages and put us in another bubble. Inventory is low and keeping us there. I was talking to another group and one poster mention that baby boomers leaving the housing market might just be what gives enough inventory to cause another crash. I hadn't thought of that, but since he brought it up, I've realized most of my neighbors are baby boomers. In between 2020 and 2030 a lot will probably exit the housing market and those home will go on the market. Estate sales are usually cheaper because kids are trying to get quick cash without doing any work.

putting your hard working money towards owning a home is a smart investment. Why pay someone else's mortgage? You build equity over the years and you can borrow on that if times get strained..
As for the maintenance? I can fix anything with a phone call.

Investments are gambles that dont always pay off. for those looking for less stress and to put their energies into things other than babysitting and keeping grown tenants in line, or being tied to long term financial commitments, or the potential for losing more than you invested(being upside down), like myself ...

paying as used is better for my peace of mind, and therefore, better for me.

I pay the amount for what Im using, and no obligation to come up with any more than that. When I want to leave, I have nothing else to think about once I lock the front door for the last time. Im not the type to live on loans or credit, so equity would not even make it worth my peace of mind for the above mentioned stress.

Kudos to those who make it work. But its not for everybody, anymore than the stock market is.

I'm beginning my move next weekend. My long term tenant is moving back home to live with her mother. She has paid the original price I paid for the home plus it has increased in value about $113,000. When I moved out it was just me and my daughter. Now that my son is back, we need more space. The past few weeks I've been doing home projects getting this place ready to rent. It's a lot of work but I'll have someone to finishing paying the 44 months left on the mortgage.

Might depend on the state your in ... some rent seems sky-high for people to have to pay each mnth ...maybe the reason for so many homeless people to ... but if u buy its yours... weather you are able to fix the roof or not when other things seem to pop up ...

I've calculated and made $72,150 from the one tenant who just moved out.(babysitting) That's more than I paid for the house. Tax assessors have it appraised $100,000 more than I paid for the house. I've spent time getting it reduced. I found out Thursday it's $14,000 lower. At the meeting he told me I could sell it for more than they have it appraised for and he is right. But I can make his life hell if he didn't lower my tax assements. I called the commissioner and had a meeting.

When home prices were soaring, people could take out tens of thousands in equity in just a couple of years. This causes others to jump in with no money down trying to make some quick cash. Home ownership isn't a gamble. It just requires you to know what you are doing and be stable. (Financially).

Owning a home can be more work at times. Painting, pressure washing, etc. But renters moving is a lot of work also. So I would say its equal.

The stock market isn't a gamble if you are diversified and a long term investor. It's another tool everyone should use to build wealth. 401k is great for retirement with a little money each week you barely even notice gone out of your check. The market was down during the 1st quarter. My son still gained $4,000 in his account. When the market is down, it's cheaper to buy. The market was back up during the 3rd quarter and he gained $2,000.

A home and 401k is something everyone should have. Some recommend that you should add at least 1 rental to your portfolio.

Home prices and rent values fluctuate widely from city to city here in CT. The apartment I'm moving out has a rent of about $800 per month. That's $2 per sq. ft. The apartment I'm moving into is twice the size, in a better area, recently remodeled, and has rent of $720 per month. That's about $1 per sq. ft. The going rate for CT is $1.12 per sq. ft.

The same goes for home values. Where I'm moving, homes are much cheaper than where I grew up 45 minutes away. A house that sells for $150,000 where I'm going would sell for $220k - $350k where I grew up, depending upon exact size and location.

I think it we looked up demographic info, we would find that population density has a lot to do with how stable home values are. High density areas are more likely to have a surplus as people move to lower density areas with less crime, better schools, and more distance between neighbors for privacy and less noise.

Inflation is good if you have debt with a fixed interest rate.

Yes, and for *all* that yammering about how real estate agents need houses, have more buyers than they have available houses, it's a "sellers' market, blah, blah....I know of three people this year alone who put their houses up for sale..and...they're still sitting there..

*Nice* houses, prettier than mine...priced reasonably (the one down the road from is is priced *cheap*, compared to others in the area)

I am in TN.
I call BS.

ty bluegrass, surprised to see this thread still running. seems simple enough

owning is not for everyone, renting is not for everyone.

SOMEONE still has to get a payment every month, and there are still consequences when or if they dont.

If you check the latest housing news, you will see that it's shifting. A lot of homes are having price cuts. That's great for buyers. A house is worth whatever someone will pay for it. But there is no debating the increase in home values since 2010.
Ms harmony loves to post info. She chooses not to in this case for a reason.

The key is to not live beyond your means. Don't be house poor. Mortgage payments eventually stop. When my company closed during the recession, my house was completely paid for. That made hard times a lot easier.

My parents taught me to build wealth while I'm young so I can reap the benefits when I'm old.

For what it's worth, I prefer owning for one simple reason: equity.

When I have equity, I can make that money work harder for myself. But when I'm paying rent, I'm just throwing money away. Sure, it puts a roof over my head, but rent gives me no leverage for upgrading to something better and a plethora of other situations.

There may be times where renting is more economically feasible, but if you are renting because you don't want to mow lawns, rake leaves, or handle maintenance, there are both good reasons and bad for making that decision. MsHarmony already pointed out some of the good reasons. Unfortunately, many actually do it for the bad reasons.

As a former tradesman and lawn worker, I don't mind doing maintenance. I can do a lot of it myself, from electricity to plumbing to roofing. That's substantial money saved when owning. In fact, I once priced out a full house renovation at around $28,000 doing it myself. That included tearing down all the sheet rock or plastic, redoing those walls for soundproofing, and a new roof. (There was actually more, but tearing out the walls makes that other stuff much quicker, much easier, and much cheaper in the long run.) The house was being sold for $50,000. After renovation, the house was projected to have a value of $150,000 based on tax assessment. But if that was inflated by 20% -- as tax assessors often do -- it should have been able to sell for about $135,000. Thus I would have been able to nearly double my money if I had bought and renovated it -- all because I know how to do the majority of the work by myself, and I had the tools to do.

So owning generally makes more sense for someone like me.

oh my gosh, if I was good with my hands I would totally flip houses or fix cars ...lol. direct pay for direct work. But I am more creative and artistic than I am good with my hands. and because I also have a preference to do things myself rather than depend on others(even if I pay them) I live a lifestyle of peace of mind and that is my equity, so to speak. No small prints, no let downs, no over charging or under working. If I cant do it myself, I really dont want to hope someone else does it.

Owning sounds a lot better, never had the chance to own a house of my own and that's so crazy to me cos I spend so much on my rented apartment.