They tell you, "don't fall in love with a house." Unfortunately, I did. Just the payments are now like more than $700 a month than at beginning due to appraisal and taxes and insurance. With an entire house to heat/cool. With HOA-enforced appearance like when I had to re-stain my garage door.
Long term, usually. But you need to be able to shell out a $30k expense at any time. Plus you're often renting from someone who bought the place years ago for half the price of what it would cost if you bought it today.
Maybe month-to-month. However everything about a house is your responsibility. It’s $5-10k to repaint. A couple grand for a water heater. $10-20k for furnace and AC. Lifetime maintenance costs for a house are no joke and you need to be prepared for huge expenses every few years.
Very dependent on where you live. In Silicon Valley rent is $5-7k a month at least but a mortgage on the same place with 20% down would be over $20k per month.
Absolutely zero chance this is true. A 20K/month mortgage is a roughly 4 million dollar loan at which the price of the property would have been 5 million.
If the rent on such a property is 5-7k then the owner is burning 13-15k a month. That’s never going to fly for the owner.
I wish loan officers or Realtors did better at explaining actual monthly costs. They can't predict maintenance but a simple, adjustable, one pager with costs laid out per house would save some heartache: mortgage, insurance+⬆️, taxes+⬆️, HOA, & avg utilities can't be that hard to pull together.
The only rule of thumb I've ever seen was something like 1% to 2% of the current market value of the home for the average maintenance cost over years. For my current house that's been more or less true.
Probably no incentive. The broker is selling your mortgage to chase or Citibank before the first payment. What do they care? Your car dealer cares more about you making your payments than your mortgage broker.
Every time I closed a mortgage the document stack got thicker. At one point the lawyer running the show introduced the document as "farmers are allowed to be farmers, if you agree sign here." Most of the consumer information regs have been helpful, because people will sign anything.
The “if I can pay rent, I can pay a mortgage thing” that goes around a lot isn’t wrong, but it misses some of the big picture.
I just had to redo the caulking on all my exterior windows & doors. CAD$1200 - absolutely no value added to the property, just preventing water infiltration and energy loss
Yeah, so we bought a house 10 yrs ago. Builder bought two lots, tore down houses and built three new ones by redividing property. We bought the model after it was built. Our 1st taxes were based on unimproved (I.e. no house) valuation. I knew this but the $1k/mo escrow jump the 2nd/3rd year was 😱.
Ugh; houses are such bitches. We have a 50s bungalow (bought it from my parents) and it's a bit of a lemon, plumbing-wise. And roof-wise. And driveway-wise...
No HOA, though. We have to take care of everything inside and out. It's making it hard to love it.
the only true answer is conquest. you must ride forth and conquer "Jeff Stevens of the HOA" and lay claim to all that was his for the honor of the color of your garage door.
There was an article about someone buying a house and "becoming house poor" because they couldn't just decide to vacation in Italy for a weekend anymore.
House poor is "sorry, guys, I have to cancel. Our water heater just went out."
Like kids, a house will just eat time and money beyond imagination
Yes. If you're in a relationship with another person & buy a home together, limit the price to where the mortgage payment + taxes + interest can be covered by only one of your salaries. Trust me. Other expenses will come up, and/or one of you will be jobless at some point. No one needs max house.
Yeah, one reason houses have 27.5 year depreciation rate for tax deduction is the expectation that by the end of it significant parts have lost their 'useful life' by then.
Money poor, and land rich, only works if the land has value, which depends on land tax besides. Housing is a terrible source of equity, and every European society has figured it out for ill or not, but we're still debating it because of real estate and development lobbies.
Yep - this is why your DTI ratio is maxed out much lower than what you might think it should be. To allow for all the "unexpected costs" that come w/ homeownership.
My husband and I bought our house as a Short Sale. I wasn't clear on what "Deferred Maintenance" meant. So many vendors said, "That'll be about a thousand dollars." Always those exact words. 14 years later, we're still fixing things. Recently, it was the bathroom plumbing. No longer $1,000 either.
I know I’ve been spamming this thread but close to my heart as grumpy Oregon Trail dad. On our 3rd house purchase. 2/3 times, wife told me we could afford it if we just did XYZ with budget. Worked out both times but not from her approach. IJS mad respect to treasury folks’ “extraordinary measures”.
I know. I hated renting because it was becoming too expensive. But stuff is coming up that the inspection couldn’t find because it was behind stuff they couldn’t reasonably see or discover.
Note to home buyers. If it’s an older home call out a plumber with cameras to inspect pipes under foundation
We got our 100yr old house under market cost, but in 10 years we've spent $14K on a roof, $16K on a new sewer main, and about $6K having gutters reattached after storms. Plus a bunch of minor costs like a couple of grand on a new water heater, etc.
You do not say what the issue was and I am not commenting specifically in your situation, but in general, a lot more repairs are getting outsourced because the lack of DIY knowledge to younger generations.
Exactly, there's a lot I could DIY at my house and I do, but any big job? I value my free time at more than I would pay a professional to do a better job much more quickly.
I do as much as I can myself, both on house and cars, but there’s only so much time in the day with 3 kids and I’m basically self taught. My DIY skills got us through some lean times though.
I can very much DIY a lot of repairs my house needs - hell, I could even DIY a lot of the renovations (smoothing the texture off my walls) but with the amount of time and labor it would take me at least 3-6 months to DIY it and I can’t juggle that time with work so I hired someone 🤷🏼♀️
I do not blame either the kids or the parents in this instance. I think the rigging of the economy caused both parents to work so no one was home to teach them. Same for home cooking.
Too many also think granite counters and stone floors are mandatory. They max out on house to get a "look" and then have no $$ for structural needs.
I can and have done repairs; paint, repair & install drywall, small plumbing jobs, replace light fixtures and plugs/switches.
Same. It’s gotten us through some tight finances when I could, for example, keep our 2007 CR-V going for 15+ years (until we sold to my SILwho subsequently wrecked it). Or replacing toilets, clearing drains, replacing thermostats, yada yada. Lucky my wife has been (mostly) patient with me.
Growing up, rigging was just taking hold; I was 12-13 when mom had to go back to work But also he had no patience for teaching me due to undiagnosed anxiety etc & didn’t know his own limits. Same when he taught my uncle in the day. I spent years learning hard & soft skills to DIY and teach my kids.
One advantage of owning is that if there is a problem, you can just fix (or get someone to fix) it. Cut out the middleman of having to contact the property manager or landlord and wait for them to get someone to deal with it. House > condo since that may still mean working with neighbors.
Rental prices in Netherlands are so obscene you pay at least double the mortgage of a house. Buying is always smarter even with repairs.
Plot twist: Normal people can't actually earn enough here to qualify for the mortgage so they're forced to rent forever
I got my place on a 5 year mortgage (30 year amort): a 50 year old house. Spent 1000$s on basement renos, new furnace, hot water heater, plumbing, wiring etc. 1000$/month payments, which I have since upped twice (to pay off faster), refinanced a bunch of times, and am almost done. And no HMO. 🍁
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I'm sorry... it's only going to get worse. I'm not being glib
I'd buy here but property taxes are insane and the weather routinely destroys people's roofs and fences.
If the rent on such a property is 5-7k then the owner is burning 13-15k a month. That’s never going to fly for the owner.
https://www.realtor.ca/real-estate/28359359/3234-14-street-sw-calgary-upper-mount-royal#view=calc
I just had to redo the caulking on all my exterior windows & doors. CAD$1200 - absolutely no value added to the property, just preventing water infiltration and energy loss
No HOA, though. We have to take care of everything inside and out. It's making it hard to love it.
House poor is "sorry, guys, I have to cancel. Our water heater just went out."
Like kids, a house will just eat time and money beyond imagination
Note to home buyers. If it’s an older home call out a plumber with cameras to inspect pipes under foundation
The problem with owning your own home is the tenants are useless and the landlord’s a penny pinching lazy bastard.
The mortgage is just the beginning, lol.
I can and have done repairs; paint, repair & install drywall, small plumbing jobs, replace light fixtures and plugs/switches.
YOU SAID WELL
I ASK YOU A QUESTION ⁉
YOU MENS TAILOR. OR WOMEN'S TAILOR
DID YOU EAT BREAD 🥪 BUTTER, FRUIT
Plot twist: Normal people can't actually earn enough here to qualify for the mortgage so they're forced to rent forever