Learning, Sharing, and Teaching > Ask a Mustachian
What's wrong with renting forever?: Stigma of non-home ownership
Retire-Canada:
--- Quote from: Shane on October 14, 2015, 02:41:10 PM ---Wow, I'd like to get a deal like that on a mortgage! <10% down and it must be a super low interest rate. How did you manage to swing that one?
--- End quote ---
I went to a mortgage broker. I have a great credit score and it's a 5yr variable mortgage. The rate is super low, but interest rates are pretty much rock bottom. I'm up in Canada.
cchrissyy:
I don't think there's a stigma to renting, and in fact don't know the own-rent status of many of my friends, or my kids' friends!
I think your kid's "real house" comment reveals what there is a stigma for - apartments. I guess if you're in an apartment, as posed to condo or townhouse, that your friends would know you rent and kid would notice that's not "a real house". But whatever, either the apartment suits you or you can rent a house next time.
I like owning because it locks in your monthly housing price for 15-30 years, feeling cheaper over time thanks to inflation, and then gets you however many years after that at just taxes and insurance. But the big downsides are maintenance costs and lack of mobility when it comes to needing something bigger or smaller or wanting to switch towns.
Shane:
--- Quote from: Vikb on October 14, 2015, 03:12:57 PM ---
--- Quote from: Shane on October 14, 2015, 02:41:10 PM ---Wow, I'd like to get a deal like that on a mortgage! <10% down and it must be a super low interest rate. How did you manage to swing that one?
--- End quote ---
I went to a mortgage broker. I have a great credit score and it's a 5yr variable mortgage. The rate is super low, but interest rates are pretty much rock bottom. I'm up in Canada.
--- End quote ---
That makes sense now. I figured it must be some sort of an interest-only or 40 year mortgage or something other than the norm in the U.S., which is a 30 year fixed rate. As long as interest rates don't increase dramatically during the next 5 years, it sounds like you've got a good deal.
SwordGuy:
--- Quote from: Fishindude on October 14, 2015, 11:42:56 AM ---No real estate taxes if you rent either.
--- End quote ---
The only time renters don't pay the landlord's real estate taxes is when the property is vacant.
Jschange:
Depending on the kids ages and personalities, they might just be curious. Giving your kid answers to the questions might put them all at ease.
"My parents work long hours and are kinda clumsy, so we live in an apartment so they don't have to waste time figuring out how to fix stuff"
If your kid is dealing with mean girls, I don't know how to handle it :)
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