Author Topic: Housing  (Read 1122 times)

fetch321

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Housing
« on: November 11, 2015, 06:43:28 AM »
What do you people do with housing?

On various forums have read that housing is a lousy investment, that going back to 1929 it keeps up with inflation at best.  Seemed certainly to be my case.  Kind of.  Ran calculations based off of zillow and after meticulously adding in every penny I sunk into the place and correcting for inflation, I indeed was in the red.  Until I plugged in the rent I would charge myself for living there.  By playing around with the number I could make myself feel happy by increasing the monthly rent I charged myself.  In the end it was very close, and seemed like for me it wasn't a good investment at all.

In the area they're building huge and multiple 75 housing developments like crazy. Worried how these will impact my "investment".  Heard that it might increase the value (boats and all that), but don't know.  Supply and demand.  A couple years ago the town I live in thought it'd be a good idea to build a 250 foot communication tower in my backyard, which would've surely decreased the value of my house though how much could be argued.  I certainly wouldn't want to buy property with the equivalent of a football field sticking straight up into the sky out back.  Was impressed by how at any moment the city could step in and screw with my "investment"

One of my friends said that when you buy a house, what you're doing is buying the right to pay taxes.  Don't know if he made that up, but I always like it.  Rings true with me.  Especially after I added up the taxes I've paid over the years.  Over 60,000.  Just quit my job in September, and we're doing fine, maintaining...expect for that property tax bill coming up.

The thing is what are all the other options?  Yea, housing is a lousy investment, but what else am I supposed to do?  Move in with my mom?  Apartment?  Seems to me the only solution is to move into a small house to minimize taxes or move to a state where property taxes are low or nonexistent.  For me the later isn't a popular option in my house as I have two kids (one 10, one 13) who I know wouldn't be thrilled moving three states over.

Sure there's no solution but was curious if anyone had any thoughts on the matter or read anything about it elsewhere that might be of interest.

2Cent

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Re: Housing
« Reply #1 on: November 11, 2015, 08:29:57 AM »
Buying a house is usually cheaper than renting in the long run. And as you buy on a mortgage it's not upfront money that you might invest elsewhere.
If you're fine now just stay there until the kids move out in a few years. Then downsize or move in with your mom.

Bearded Man

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Re: Housing
« Reply #2 on: November 13, 2015, 06:51:54 AM »
Owning a primary residence can be better than renting in the long run, but beyond that, studies show that stocks beat real estate and that RE keeps up with inflation, at best. So basically, you're just maintaining earning power.

But if you have a situation where you put little money down, you just fixed your cost of housing. Rents will go up while your mortgage is the same.

Also, keep in mind, renters pay property taxes. It's built into the rent.
« Last Edit: November 19, 2015, 10:47:24 PM by Bearded Man »