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The real cost of owning a home

ericturner.dev

561–570 of 901 posts

Re: The real cost of owning a home

#561

The benefit of owning a home is almost always psychological, not financial. If you take the money you'd use for a down payment and mortgage and invest it instead (after paying rent) you end up in about the same place. But the psychological benefits can be huge. You have much greater control over the place you spend most of your time. You can change it to your liking. You don't have to worry about rent increases or ow…

Yeah this. But some additional flavor to emphasize the 'don't do it for financial reasons' aspect. In the late 90's I, like a number of my married friends, 'owned' a house in the Bay Area. Dot coms were going crazy, the economy was insane, and people who got big equity payouts were buying places with their stock. At the height of all that, my Sun stock holdings were enough to pay off the remainder of my mortgage but…

Thank you for sharing!

> I still got complaints from my financial advisor that she could get us a better return than that, but I didn't care. I wanted more certainty than that.

Seems to me that she is the one hurting more because your choice undermined her commission lol

Re: The real cost of owning a home

#562

Beyond financial costs, I was caught off guard at how much time home ownership took up. House maintenance and projects have taken up most of every single weekend of mine for the past few years. Part of it is simply that I bought a house with more space than the places I usually rented. More to clean, more to maintain, more things that can go wrong, etc. But the biggest thing is that I'm the only one in charge of main…

Indeed. This is why I'm a preferential life-long renter, although I think the primary reason is that I can't stand living anywhere for more than 2-5 years. So much friction to move, unwinding this risky position very expensively, with loads of transaction fees stacked--I can't understand the appeal. Even owning a condo was enough for me to realise I don't want to own my own bare metal, and that I look at housing as a…

Wow, moving every 2-5 years? I suppose it works with no kids, or spouse ..

Re: The real cost of owning a home

#563

Ben Felix, a Canadian portfolio manager that does personal finance videos and podcast, has been arguing for years that rent versus buy is often a wash financially, and that you should make the decision for non-financial resasons. * recent 2026 video: https://www.youtube.com/watch?v=aU7v87EhDBI * 2025a: https://www.youtube.com/watch?v=j4H9LL7A-nQ * 2025b: https://www.youtube.com/watch?v=lBG-g1CKfgs * 2021: https://www…

Is the 5% rule for total rent per year?

Re: The real cost of owning a home

#564

Earlier quoted context omitted.

Ask your realtor for references.

Why would you ask a realtor?

Realtors tend to have a lot of contacts. The realtor I worked with knew “a great guy” for every aspect of the house (roof, plumbing, cabinets, driveways, etc.) due to the fact that she naturally encountered so many of these tradespeople.

She would get recommendations from sellers. Either the seller recently had work done in order to improve the home before putting it on the market, or, the seller had some trusted expert they used for years.

My realtor actually encouraged me to ask her for any contacts if I needed something done in the future. I sense that her contacts like having customer referrals as well.

Re: The real cost of owning a home

#565

Earlier quoted context omitted.

> and having extremely predictable payments for years I’d argue rental is more predictable. Housing has a huge amount of upkeep — $10k ac, $5k water heater, $20k roof…

American homes are weird that roof costs are something that occurs. Last house I owned in the U.K. was 60 years old, original roof. Was advised it might need $10k of work if I wanted to out 10kWp of solar on it to the weight of the tiles. $180 a year into a “roof fund” doesn’t seem extreme to me.

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Re: The real cost of owning a home

#566
post #558

Earlier quoted context omitted.

Why would you ask a realtor?

Realtors often have a list of contractors they rely on to help potential sellers get their homes ready for sale. I have found and used recommended roofers, plumbers, HVAC and electricians from a local realtor that wants my future business.

I would caution seeing a Realtor as an easy way to avoid doing your homework on someone. I did this long ago and the Realtor's recommendation was one of the worst I have ever worked with.

There is, unfortunately, no shortcut to finding quality handymen.

Re: The real cost of owning a home

#567

Ben Felix, a Canadian portfolio manager that does personal finance videos and podcast, has been arguing for years that rent versus buy is often a wash financially, and that you should make the decision for non-financial resasons. * recent 2026 video: https://www.youtube.com/watch?v=aU7v87EhDBI * 2025a: https://www.youtube.com/watch?v=j4H9LL7A-nQ * 2025b: https://www.youtube.com/watch?v=lBG-g1CKfgs * 2021: https://www…

[deleted]

Re: The real cost of owning a home

#568

Earlier quoted context omitted.

> There’s also a psychological benefit of not having to worry about most problems. Sink broke? Call landlord to fix. Roof leaking? Call landlord to fix. And so on. You never have an unexpected $20k repair show up. Not my experience, at all. All landlords I've had were lazy assholes who did the bare minimum, but never forgot to increase rent on the 1st of January, every single year. Paying someone else for no other re…

To be fair, there's piles of sh*tty renters too, who abuse the system and ruin the experience for everyone. If you have ever been a landlord, especially in certain market areas, it pays to be that "lazy asshole", otherwise you'll lose your shirt (and more). Ask me how I know....

I bought a house shortly before unexpectedly relocating to SoCal. It didn't make any sense to sell, so we rented it out while we were there. The renters never seemed like a problem. Payments kept coming in as expected. They moved out and we took the place back over and found out they had converted one of the bedrooms to an indoor pet bathroom. Literally let their dogs shit and piss all over the floor. I always got annoyed trying to find a rental that would accept pets because our children have always done far more "wear and tear" on the house than our pets have. But after that mess we were left with it makes a lot more sense.

Re: The real cost of owning a home

#569

>"renting is just throwing your money away" Unless you think landlords are running a charity, some part of your mortgage is going to them as profit (over a large enough sample of renters anyways), and some percentage of your rent is covering 'bad tenants' (which you're not, right?). Their entire improvement section is also something renters tend to not think about. It's a weird situation when renting that you aren't…

> With home ownership though, things like a modern kitchen, a shed, new laundry machines not only better your life today but also (likely) have some value add.

Just beware that it's usually much less than you put in though. We bought our house for £25k more than the next door neighbours even though they're cookie cutter houses sold within 4 months of each other. Our house was thoroughly modernised, new kitchen, all old windows replaced with double glazed windows, garage converted into home office and a bunch of other stuff. We definitely can't do all this work for £25k.

My understanding is that it does raise the value of the house, but less than you put in. I do find it strange, because personally I'd hate living in a building site or dealing with contractors, so if someone already did an extension/loft conversion that I would've wanted to do, I'd pay a premium. Apparently people want it done 'their way', which I can appreciate, up to a point.

Re: The real cost of owning a home

#570
> My 1983 home had been used as a rental for years, so much of the maintenance had been neglected.

This quote is ironically a weighty argument for why living in a rental sucks, even if it nets out the same or better on paper.

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