601–610 of 901 posts
I'm not from the US but I find some of these numbers ridiculous. $515.50 per month for property taxes? That seems soo high. What does this cover - garbage collection, what else? > Cut down trees that were too close to the house: $2,800 I could've likely flown to the US, cut down your trees for a few hundred and flown back home for that much money. Why so expensive? I'm beginning to question the other numbers. > Repla…
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…
From time to time I drive by the place I rented for quite a few years almost a decade ago now. All the visible stuff that needed maintenance when I lived there is still just as it was when I moved out. Maybe they've fixed up the (worse) interior issues, but probably not.
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you prbly bought an old aging home
Every home will become old and aging...
The article details costs and leaves two big ones out. First, opportunity cost: lot of folks rent instead of own on the basis of keeping assets in higher-performing market sectors. Second (and perhaps actually an expression of the first), anything that prevents a working professional from changing cities can exert downward pressure on future economic opportunity.
Maybe 1% of renters do that. The rest can't afford a house. Changing cities? Sell or rent out your house. Not harder than moving apartments.
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I don't think home ownership is an "every single weekend" thing unless you bought a fixer-upper. Honestly, it sounds like you enjoy it. If you are doing it with that frequency I think you just are "into" your house.
> I don't think home ownership is an "every single weekend" thing unless you bought a fixer-upper. It really isn't, and I don't know why so many homeowners act like it is. I bought my house in 2015. It was built in 1983. The only things I've had to do are a roof replacement, HVAC upgrade, and deal with a broken water main. Sure, none of those were cheap, but that's 3 events in 11 years, and the first two I expect to…
I'm not from the US but I find some of these numbers ridiculous. $515.50 per month for property taxes? That seems soo high. What does this cover - garbage collection, what else? > Cut down trees that were too close to the house: $2,800 I could've likely flown to the US, cut down your trees for a few hundred and flown back home for that much money. Why so expensive? I'm beginning to question the other numbers. > Repla…
> What does this cover - garbage collection, what else? That's the fun part, it doesn't even cover garbage! Jokes aside, property tax in the US typically go towards safety net funding for your community. So a lot to schools, public safety, roads/infrastructure, etc. There are definitely some places where garbage is covered in that, but a lot of places garbage collection is privatized in the US. Sometimes hearing abou…
> but a lot of places garbage collection is privatized in the US.
Closed housing complexes, like the suburb ones with gates where you have HOAs and your own security? Or just random parts of a city?
I really kind of want to move to the US to cut down your trees now. I'd be willing to yolo it without injury insurance for a while if that's allowed. If I cut the trees from top to bottom there's very little risk for the house. But I guess the clients would expect me to have such insurance? The whole thing is kind of foreign to me, as if I was incapable of cutting down my own trees I'd just hire some company, likely a small one recommended to me by someone I know, and never question what kind of insurance they have or whether they're licensed or not.
I'm not from the US but I find some of these numbers ridiculous. $515.50 per month for property taxes? That seems soo high. What does this cover - garbage collection, what else? > Cut down trees that were too close to the house: $2,800 I could've likely flown to the US, cut down your trees for a few hundred and flown back home for that much money. Why so expensive? I'm beginning to question the other numbers. > Repla…
I agree, but the what else is that property taxes are often the largest source of income for a city budget, if not the sole source, so everything that goes into running a city; road maintenance and police usually make the top.
> Can't you do it for like 5-10 $ yourself? If you don't have any tools, maybe spend 20 $ for tools? The author even says he replaced his own faucet - I don't get it at all.
Labour would be free as long as you can't spend that time earning more money or doing something you'd prefer instead of replacing a faucet, but like any other product they can be anywhere between $0 and much more than $185. I personally don't value faucets that much, but if I were replacing one, I don't see why I'd get a crappy one.
> I could've likely flown to the US, cut down your trees for a few hundred and flown back home for that much money. Why so expensive? I'm beginning to question the other numbers.
There's not enough information to make a coherent judgment, but assuming the tree is a rather large one, why would you? If someone said to me "I'll give you $400 to fly to Europe and cut down a large tree that's too close to someone's house without causing any damage and you must bring your own equipment, dispose of the tree, etc.." I sure as hell would not take that offer, especially if I knew how.
The surprising amounts are the point of the article; home ownership is excessively expensive, and if you don't value these things highly enough to either DIY or hire someone to take care of it, it's probably not worth buying one. That's why I'm happy to rent, I don't give a damn shit about any of that and would rather light my hair on fire than volunteer for these burdens, unless I was rich enough to not need to be concerned at all. The same could be said about the house itself; in my city, a house like this would cost around $2m USD just for the privilege of doing all this other bullshit for eons.
That said, your line of reasoning seems akin to the old "why spend thousands on a macbook, I could build a PC for half (which isn't true anymore)" or stubbornly using some ancient piece of trash for your whole career even though you can afford something good. Quality work and good/better tools are worth investing in if you value them or their output. I could use a garden hose and a bucket to shower everyday and live in a cave too. Luxuries are when you get into pointless spending territory, where you're just spending wild amounts more than necessary to achieve the outcomes you want in the timeframe you want.
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>But the biggest thing is that I'm the only one in charge of maintenance. There's no one person I can call for every single problem. Keeping track of regular maintenance, performing that maintenance, and learning how to DIY things takes a lot of time. And even if I want to pay someone to do it for me, I still have to research contractors, coordinate estimates, and schedule the project. And I still need to learn enoug…
If you treat your house like a rental that you rent to yourself, you can avoid a bunch of headaches - mainly because you’ve given yourself “permission” to spend on it.
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A house is an inflation hedge. Any calculation about investing the difference has to subtract the rent you are paying and rent goes up every year. There is no where where you can pay a rent anywhere close to what I'm paying for my mortgage in my area and I'm only 5 years into this. Of course I lucked out by locking in that sweet sub-3% rate, but still, I find it hard to believe that over time if you took the money yo…
> A house is an inflation hedge. So are Stocks ... > I find it hard to believe that over time if you took the money you'd put into a house and subtracted out rent, you'd end up winning in the long term. You are not alone. The thing is this is such a common argument that there are a zillion rent vs buy calculators [1]. That said, yeah sub 3% the math often does work out in terms of buy (assuming you don't sell before…
My guesses were ludicrously wrong when I did these back in 2018, relative to what has actually happened in both the rental market where I live, and the value of the house I bought. I concluded that the reason to buy was only about the non-financial aspect, and that we'd probably lose a little money all told. But it has turned out to be a six figure win in practice. Rent has gone way up, we were able to refinance to one of these very cheap loans during covid, and the property value spiked around the same time. I never would have guessed any of that. And any of it could have gone the opposite way.
So the calculators were honestly pretty useless. It's all too unknowable.
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…
I don't think home ownership is an "every single weekend" thing unless you bought a fixer-upper. Honestly, it sounds like you enjoy it. If you are doing it with that frequency I think you just are "into" your house.