House Mortgage -- Countdown

[james.hendrickson]

Go for it James...once the debt is done, you would find the next purchase is easier. It's like savings... the first $100K is the hardest.

Random saver, thanks for the encouragement, I really, really appreciate it.

[Randomsaver]

Go for it James...once the debt is done, you would find the next purchase is easier. It's like savings... the first $100K is the hardest.

[james.hendrickson]

All - posting another update here. I made another payment on my mortgage on Tuesday of this week, bringing the total down to $284,905.33.

[Randomsaver]

Bought my fourth property.



This has been appropriated separate from my retirement $ in the Countup thread. I bought this almost cash with minimal debt that I can pay fully by end of year.

My 2 other properties.

[Randomsaver]

The hedge against inflation cannot be understated. But here is another --- hedge against today's market downturn. I agree though at some point, it's time to cash it up and enjoy the moolah! And guess what, not only had you lived rent-free but you earned more, sometimes more than what the market gave you (if the location is right).

[LivingAlmostLarge]

What I learned in life is avoid rent for more than a year, 2 at the most. For me rent is paying other people's mortgage or retirement. Believe me, I know that because I am a landlord of 2 properties now. When I comment out on youtube, I put on my landlord cap and post stuff why rent is good than owning. But on this site, I put on my advisor cap and I would like folks to get out of rent instead.

The best way to do this is by starting small, get something you can buy right away. These would be mostly townhouses or condos, not because they are cheap.... some of these are more expensive per sqft...but because of their smaller sizes, like 1 BR or 2 BR, they become more affordable.

Then as you get bigger pay and save more...sell and move to the one you like. Me, I've kept all as I find it easier to rent smaller units out. The rents are small also but the capital gains are nice. That's the other thing about smaller units of properties, one can get great locations.

Renting and owning have a time and purpose like Disneysteve said. His mom has rented for 18 years. I can definitely see the appeal in the end stages of life of renting. Call landlord when anything breaks.

But i think homeownership is the cornerstore of financial freedom in some ways. Hedge against inflation, appreication, leverage.

[disneysteve]

I don't agree with a lot of this. In my opinion there are one heck of a lot of people out there that would be much better off as renters than home owners.
It's almost always cheaper to rent than own when you start considering things like upkeep costs, taxes, snow removal, lawn care, etc., etc. Not to mention the tools and equipment you'll need to own to maintain the place.

A home owner either needs to have deep enough pockets to pay and have everything done, or needs to be physically able and somewhat handy to do all the upkeep, maintenance, minor repairs, lawn care, etc. Many home owners do not fall into either category and it's not hard to spot their homes as they are usually in disrepair. Some of those folks are losing equity rather than gaining.

I agree. Saying that owning is always better simply isn’t true. There are many situations where renting makes way more sense. My mom has been renting for the past 18 years and I’m very glad she no longer owns her own place.

[Fishindude77]

What I learned in life is avoid rent for more than a year, 2 at the most. For me rent is paying other people's mortgage or retirement. Believe me, I know that because I am a landlord of 2 properties now. When I comment out on youtube, I put on my landlord cap and post stuff why rent is good than owning. But on this site, I put on my advisor cap and I would like folks to get out of rent instead.

The best way to do this is by starting small, get something you can buy right away. These would be mostly townhouses or condos, not because they are cheap.... some of these are more expensive per sqft...but because of their smaller sizes, like 1 BR or 2 BR, they become more affordable.

Then as you get bigger pay and save more...sell and move to the one you like. Me, I've kept all as I find it easier to rent smaller units out. The rents are small also but the capital gains are nice. That's the other thing about smaller units of properties, one can get great locations.

I don't agree with a lot of this. In my opinion there are one heck of a lot of people out there that would be much better off as renters than home owners.
It's almost always cheaper to rent than own when you start considering things like upkeep costs, taxes, snow removal, lawn care, etc., etc. Not to mention the tools and equipment you'll need to own to maintain the place.

A home owner either needs to have deep enough pockets to pay and have everything done, or needs to be physically able and somewhat handy to do all the upkeep, maintenance, minor repairs, lawn care, etc. Many home owners do not fall into either category and it's not hard to spot their homes as they are usually in disrepair. Some of those folks are losing equity rather than gaining.

[Randomsaver]

What I learned in life is avoid rent for more than a year, 2 at the most. For me rent is paying other people's mortgage or retirement. Believe me, I know that because I am a landlord of 2 properties now. When I comment out on youtube, I put on my landlord cap and post stuff why rent is good than owning. But on this site, I put on my advisor cap and I would like folks to get out of rent instead.

The best way to do this is by starting small, get something you can buy right away. These would be mostly townhouses or condos, not because they are cheap.... some of these are more expensive per sqft...but because of their smaller sizes, like 1 BR or 2 BR, they become more affordable.

Then as you get bigger pay and save more...sell and move to the one you like. Me, I've kept all as I find it easier to rent smaller units out. The rents are small also but the capital gains are nice. That's the other thing about smaller units of properties, one can get great locations.

[LivingAlmostLarge]

What about moving within the city you are in?

[mumof2]

remote jobs here are far and few between...and I won't move cities simply put we all have great doctors that have taken years to find that are understanding and listen and work with us..so wouldn't move for that reason and most other states are the same when it comes to renting or buying...you guys have 50 states...we have 6 and 2 known territories and our state is one of the cheapest already....covid has really messed up a lot of things...and I can't currently work

[LivingAlmostLarge]

True...we can't really cut back on anything in our budget right now...we have animals so couldnt live in condo/unit and my illness extra noise from people or change in temperature, to many lights etc set my body into melt down...we have looked at all options...moving further away is not an option also wouldn't save us money, it would cost more in gas and rent isn't any cheaper...believe me we have looked at the options...renting is fine for now...and I believe if we are meant to buy a home again it will happen

Are the jobs in person? What are the posssibilities of working remotely and moving cities? What are possibities of switching jobs?

[mumof2]

True...we can't really cut back on anything in our budget right now...we have animals so couldnt live in condo/unit and my illness extra noise from people or change in temperature, to many lights etc set my body into melt down...we have looked at all options...moving further away is not an option also wouldn't save us money, it would cost more in gas and rent isn't any cheaper...believe me we have looked at the options...renting is fine for now...and I believe if we are meant to buy a home again it will happen

[LivingAlmostLarge]

where we live we dont really have that many apartments and most go to single people or students...most rent out single houses here...it is what is available...we would love to buy but again saving $70,000- $100,000 for a deposit in incredibly hard when you are paying high rent...when you have a daughter that has been chronically ill since aged 14, a hubby that has multiple health issues and my chronic illness it is hard to save so much and the prices keep rising, we owned a house years ago but had to sell due to illness and all that was going on...but we will get there eventually the house we buy will be our forever house so we want it to be what we all want and need

But see that's the issue that I'm pointing out. That people need to make more sacrifices to get there. Where you live is only houses. Where you live has no apartments. But what about elsewhere? What are thinking outside the box for either earning more income or lowering your monthly nut? Do you think it was comfortable living in a 1 bd? Or a condo with 2 kids? I know people who live in 2 bd condo with 2 kids permanently because they like the location. They never lived in a house both in the US and abroad.

I'm just suggesting that people do things to get make their future possible. Buy a bigger home and rent out rooms. Move into a house and rent out a couple of the rooms instead of the whole house. I had a friend whose family lived with 3 other families in a 4 bd house so a family of four lived in 1 room (to live in palo alto). Another friend lived in a 3 bd house in California with 14 other family members. She shared a room with 3 other cousins/siblings. I've known people who rent rooms in homes. I don't think it's easy to save a down payment while renting, I find it next to impossible personally.

But then maybe the answer is getting a second job or looking at moving further out. Smaller home. I know lots of people who commute 1+ hours because of it. Something we didn't find pleasant. But the reality is that we chose a smaller house for a shorter commute. Gave up a garage before for a better commute. I don't think anyone can have it all. You just have to chose the least pleasant option and that option might be renting.

[mumof2]

where we live we dont really have that many apartments and most go to single people or students...most rent out single houses here...it is what is available...we would love to buy but again saving $70,000- $100,000 for a deposit in incredibly hard when you are paying high rent...when you have a daughter that has been chronically ill since aged 14, a hubby that has multiple health issues and my chronic illness it is hard to save so much and the prices keep rising, we owned a house years ago but had to sell due to illness and all that was going on...but we will get there eventually the house we buy will be our forever house so we want it to be what we all want and need