hey older guys, do you own or rent

[MonteLDS]

I have worked in real estate, yet have never been the buyer/seller before. what are your guys feeling when you bought or sold?

[cfitz]

I rented for a number of years (probably about seven) before I finally bought. There were several factors that kept me renting as long as I did. First, as is often the case, was the difficulty in saving up for a down payment. Second was simple intimidation about diving into something I had no experience with and putting so much money into it. Third was a strange feeling that buying was somehow committing to something more than just getting a house. You know guys, we hate to commit! I almost had an attitude of "As long as I am renting, I'm free to pick up and go anywhere, anytime at a moment's notice." It was as if I saw renting as an expression of my freedom of youth.

For the most part I would say reason three was just silliness on my part. You can always rent out your house if you decide to move on or sell it if you want to completely set yourself free from it. Part of my worry behind reason three was that my house might depreciate and I would have to hold it because I couldn't afford to take a bath selling it. But although that is always a possibility, it isn't likely and even if it does happen the market usually turns around in a couple of years.

The second shouldn't be an issue for you, since you have experience in the field already. Even for those who don't have prior experience like you, it isn't such a large barrier. Just take the time to educate yourself on the process.

The first is just a matter of practicalities and priorities. You just have to save what you can with your income to reach your goal.

Altogether, I wish I had purchased earlier. Maybe buying right out of college wouldn't have been the best for me, but in general the earlier you make an investment, any investment, the better off you are. Let the power of appreciation and compound interest work for you as long as possible by getting started with investing as young as possible.

cfitz

[JamieW]

I own but have a slightly different idea of mortgages than most people. I despise them. I had a huge down payment for where I'm at now which gave me immediate equity, took a small loan and paid it in just over three years. Owning is financially superior to renting. Anytime you plan on being in one place for some time, it is worth it to buy. With large downpayments, you can see a return in 3-4 years. With smaller ones it can take longer, upwards of 7-8 years unless it is a hot market to get equity. Rent is wasted money. You can't recover it.

Mortgages make me want to vomit. The bank just violates you prison style.

[eliminator]

both

[socheat]

Gotta agree with JamieW and cfitz. Owning a house is a good solid investment in most places. As soon as we had enough saved for a 10% down payment, we bought. Obviously, we went the mortgage route. However, we figured the interest alone is less than what we would lose paying rent over a couple years, so it was still better to own rather than rent.

[Ian]

Yeah, I bought a house thinking I could get away from idiot neighbors. Think again...

[CowboySlim]

Hey, older guys......................

Monte: What is the age cut-off here? Maybe I'm too young to respond.

Slim
Who has been living in his house for 37 years.

[BuddhaTB]

With the cost of living and the median price of homes very high in LA and Orange Counties in Socal, I'll probably end up renting or staying at home even longer after I graduate.


Too many people want to live here!

[jase]

I messed up big-time on this one. I've waited too long, and over the last 4-5 years the house prices have sky-rocketed round these parts, to the point where I don't really think I can afford one any more

In the last 6 months alone some house valuations have increased by 40-50%..... a friend of mine bought a small house in a nearby town for £35,000 (admittedly with some modernisation work required) -- a year later houses on the same street are selling for £65-70K. It's crazy.

I guess I'll have to wait until the next recession (there hasn't been one in the UK since the early 90s), things go belly up and I can get a deal.

[Spazmogen]

No one's touched on this one yet. So I will.

I rented until I was about 30. Then I married and she came with a small town house condo (she owned it). We lived there for 3 years then moved into a proper home with 2 car garage, fully fenced back yard and 1/2 a block to the public school (JK-grade eight).

So, what did I/we do with all of that extra cash?

Retirement savings.


I may be a civil servant, but I'll be damned if I'm working past age 57.
I'm only 36 now...and I've been saving for retirement since I was 22. Employer pension plan contributions since day one: 10 years ago.
I'm 36, but I've already got over 1 year of salary saved into my retirement plan.


So, if you're still young: time is your friend. Start investing for retirement now while you're renting your home or apt. Don't waste all of that money on shoes or having a bad asss car or hair gel products.

You'll be retired years ahead of your friends and co-workers.

Give me a hammock, a couple of palm trees and a rum drink with condensation running down the outside...of course it'll be in the Florida Keys. Starting in about 21 years.

[CowboySlim]

That's right Spaz, you tell'em. And you young'uns, listen to Spaz.

I've done just what he has and it works. I've got 29 on him and still work, but not because I have to, because I still enjoy it. I bought my house in '67 and it's done the jase thing 20 times over. BuddhaTB will vouch for that as he knows where I live: in north Huntington Beach, about 1 1/2 mile up from PCH and just off Warner Ave. Well, that's just the way it is, my good fortune is why BuddhaTB will be stuck at home until he sells off the shoes. And Spaz has it right about the cars. We put our money in just as much house as we could and saved for the down payment by driving minimal cars. Now we both drive full up Jeep Grand Cherokee Limitids.

I'll be taking mine out the back country of northern Arizona again in two weeks for our annual camping, back country exploring 4WD adventure. Spaz, rest assured that if we find any German tourists broke down on a remote dirt road again, we'll save them.

Slim

[Ian]

Most of the money for my investments comes right out of my paycheck. I don't even miss it. If I didnt' do it this way, I'd probably never put it away. It's hard enough putting money in my IRA when tax season rolls around.

[Spazmogen]

Ian's got it right: pay yourself first, then live on what's left.


It's a lot easier than you think.

Time + compound interest = $ in your account.

Slim: go save them. I can't until I'm back to work in early July.

Now I'd better get back to my ground school on DVD training. I got 3 hours of computer time away from wifey & kids. I'm trying not to waste it surfing a ton of sites, and not doing what I said I was going to do.