Rethinking Homeownership

[tobee43]

I think the concept of buying a house and living in it until death is a great one, but not a reasonable expectation for most people anymore. Eventually, I hope to settle in a place where I will stay until I die, but I foresee at least one more move until that happens. Until then, its renting for me.

we are now at the point you describe which is staying until we die. it's just we were really not prepared to make this move for another 5 years and really wanted it to be done on "our" terms.

but, we have been blessed with a second chance and we are adjusting to our new lives and home, which we will stay in forever...or until my kids lock me up! LOL!!

[artgood]

I think the concept of buying a house and living in it until death is a great one, but not a reasonable expectation for most people anymore. Eventually, I hope to settle in a place where I will stay until I die, but I foresee at least one more move until that happens. Until then, its renting for me.

[tobee43]

I think this sums it up. When I decide to buy another house, my overall financial picture will look much different. I will be completely debt free, have at least 4-6 months of EXPENSES saved, and put at least 10 percent down on the house.

that's a good way to approach it. i remember our first house in the "old" days...we had to have 20% down and we didn't have a pot to cook in! it took us over 25 years to begin to save and about 1 year to loss everything we ever worked for.

we are one of the lucky one's that were able to hit the "reset" button and move on and just purchased another home in feb of this year and start over, even this late in our lives. it's nice to have this second chance, that's all i can say.

[tobee43]

That is he real key, the housing bubble was, in large part, but the frequent up buying. If you go back and look at the post world war II era, most people stayed in their homes there entire life, I know my grandparents did.

that is a good point. and, in reality, was our thoughts when we purchased our house over 30 years ago. as was my parents, and grandparents as well.

now, today, if your or my grandparents intent was, and is to stay in a house until their dying day, then all of a sudden an economic earthquake happens, the likes that no one could see or predict; and as a result effected every part of our economy. strongly striking the typical "American" family right in the heart of their financial guts...hitting them in ways that reflected their costs of their i.e. utilities double in costs, their medical costs skyrocketed, increased property taxes, increases in food, gas prices going out of sight. so on and so forth and, well, even many of our grandparents couldn't or wouldn't have been able to keep up with today, as they are stuck with no earning power, and cut backs in their fixed incomes.

HELP!!

[jetsfan2010]

To me it's not buying a house that is the issue. Buying a home I think is one of the most important things you can do for your long term financial security. I think the trick is to buy a home when you are ready to buy. That is......

1. DEBT FREE!
2. Emergency fund of at least 6 months of house notes (all expenses really).
3. LARGE down payment to offset any declines early on and to elimate PMI before you get ripped off!

If you do it that way, things go much smoother. Even with the last three years, I believe median home prices are still up some $40K in the last 30 years. It's not going to make you a millionaire, but paying off your home and owning it as you near retirement is a huge advantage.

Just my two pennies worth.

I think this sums it up. When I decide to buy another house, my overall financial picture will look much different. I will be completely debt free, have at least 4-6 months of EXPENSES saved, and put at least 10 percent down on the house.

[HHM]

We lost a home to foreclosure before we filed bankruptcy. We moved because I changed jobs, and the house never sold. Now, I don't think I will ever buy a house again, unless I know for sure I will never, ever move again.

That is he real key, the housing bubble was, in large part, but the frequent up buying. If you go back and look at the post world war II era, most people stayed in their homes there entire life, I know my grandparents did.

[tobee43]

artgood, i personally so understand. we just were not truly prepared mentally or physically to make a major move (after being in the house for 33 years), and now that we have........well...the ONLY box coming out of this house will have ME in it!!

[artgood]

We lost a home to foreclosure before we filed bankruptcy. We moved because I changed jobs, and the house never sold. Now, I don't think I will ever buy a house again, unless I know for sure I will never, ever move again.

[tobee43]

Your situation is exactly why I have to do similar things of not having a pro paying job and such. Just would cost too much in the lost benefits and suddenly needing childcare. We would be worse off. Of course, try explaining that to people like the ones who think you should work at the supermarket. I tried to explain it once and people just were so mad that I was gaming the system. Um, no, just trying to survive, folks. And the thing is, I knew another person at the time whose family was heading fast to financial armageddon because she refused to apply for food stamps and WIC, all out of some perverse concept of not wanting to benefit off of what others are paying in. It's not about trying to "take advantage" and take hard earned money from your neighbors' taxes, it's about realizing the practicality of the different options and choosing the one that leads to the least long term damage for everyone in the family. Personally I hate it all and I feel like the social programs tend to propagate more problems and more need for people to use them, but as one citizen, me denying my children health care and food is not going to make the overall societal situation better.

it really is such a sad state of affairs when one is put in such a position.

we also, it's the same thing, we can't afford to pay spend $100 a week on gas to get a part time job with no benefits that ways us $140 a week.

we need to take care of children and elderly, and i just don't care where we get the funds!!!! our children are our future, we cut education budgets, we cut medical service for our children, and our elderly who's backbones built this country, those two factors are enough to assure a dim future for all.

hard and sad times!

[Resigned2BK]

Sooo true. We go round and round with this all the time. People ask me why I don't take a job in the supermarket, and this is what it always comes back to. It will cost too much.

Some years ago, we were in what we thought was a lot of debt ( a fraction of where we are now). We managed to get on the state plan for health insurance and in one year, were out of debt. THEN I TOOK A PART TIME JOB. I made a whopping 4K. Guess what? I lost the health insurance because I made just about 4K too much.

It still rankles me that I was so stupid. And has helped lead to our ultimate "demise".... along with all the other crap the past few years.

Your situation is exactly why I have to do similar things of not having a pro paying job and such. Just would cost too much in the lost benefits and suddenly needing childcare. We would be worse off. Of course, try explaining that to people like the ones who think you should work at the supermarket. I tried to explain it once and people just were so mad that I was gaming the system. Um, no, just trying to survive, folks. And the thing is, I knew another person at the time whose family was heading fast to financial armageddon because she refused to apply for food stamps and WIC, all out of some perverse concept of not wanting to benefit off of what others are paying in. It's not about trying to "take advantage" and take hard earned money from your neighbors' taxes, it's about realizing the practicality of the different options and choosing the one that leads to the least long term damage for everyone in the family. Personally I hate it all and I feel like the social programs tend to propagate more problems and more need for people to use them, but as one citizen, me denying my children health care and food is not going to make the overall societal situation better.

[keepsmiling]

This is more along the lines of jobs than home ownership, but like Tobee says .... sometimes you can't afford to make more money! My SIL needs to stay at a certain level so that the family will qualify for all the social services they need for a family of six ... free medical & dental, food stamps and HEAP. If he had a better paying job, they would be worse off, because he can't make enough to offset the benefits.

On a side note, we have a new problem, but a good problem to have, I guess. My hubby accepted a part-time job, to hopefully go full time after about 3 months. This was great, cause it would enable us to be under the median for the means test. Then today we got email from his new boss saying one of their employees was leaving and he wants him to go full time right away. So I guess insurance premium hikes, here I come! Hope I can come up with a workable schedule J!

Sooo true. We go round and round with this all the time. People ask me why I don't take a job in the supermarket, and this is what it always comes back to. It will cost too much.

Some years ago, we were in what we thought was a lot of debt ( a fraction of where we are now). We managed to get on the state plan for health insurance and in one year, were out of debt. THEN I TOOK A PART TIME JOB. I made a whopping 4K. Guess what? I lost the health insurance because I made just about 4K too much.

It still rankles me that I was so stupid. And has helped lead to our ultimate "demise".... along with all the other crap the past few years.

[tobee43]

This is more along the lines of jobs than home ownership, but like Tobee says .... sometimes you can't afford to make more money! My SIL needs to stay at a certain level so that the family will qualify for all the social services they need for a family of six ... free medical & dental, food stamps and HEAP. If he had a better paying job, they would be worse off, because he can't make enough to offset the benefits.

On a side note, we have a new problem, but a good problem to have, I guess. My hubby accepted a part-time job, to hopefully go full time after about 3 months. This was great, cause it would enable us to be under the median for the means test. Then today we got email from his new boss saying one of their employees was leaving and he wants him to go full time right away. So I guess insurance premium hikes, here I come! Hope I can come up with a workable schedule J!

yes, that was more about jobs, than owning a home for the moment. and, sorta, that's the point...it seems like for so many life changes EVERYDAY. usually people attempt to own a home near their jobs, but nowadays it just seems not to be working that way.

congrats on your hubby's new job!!! and that's the ever daily CHANGE one can find themselves in...wow...how can one keep up! one day no job, one day a job part time, then full time, then tomorrow it might be 3000 miles away...holy cow!!

i'm sure you'll work fine around that schedule j

[StrawberrySu]

i think for the working generation today, this is key. i know when i really wanted my daughter to buy that house as soon as she moved last year, she refused and how smart, since her husband got laid off and now they are just picking up and moving closer to the city where more jobs are available for him and closer to her work. since so many people left the city for that "dream" home she was telling me her housing cost will drop over $300 monthly, besides she will no longer need $400 for gas. that was almost half his salary as a teacher! now, if they scale down the kids daycare to 2 days a week, (it was costing them $1000 monthly). well, they are UP after he loses his job, except medical. she makes too much for family care and too little to afford it! all the employer's in her state apparently and illegally hire key staff and administration people as "contractors"....so no benefits.

now..i just got that LLC going for her drop her income so she can get some medical.........forget the thought about ever buying a home. at least it's being shelved today!

This is more along the lines of jobs than home ownership, but like Tobee says .... sometimes you can't afford to make more money! My SIL needs to stay at a certain level so that the family will qualify for all the social services they need for a family of six ... free medical & dental, food stamps and HEAP. If he had a better paying job, they would be worse off, because he can't make enough to offset the benefits.

On a side note, we have a new problem, but a good problem to have, I guess. My hubby accepted a part-time job, to hopefully go full time after about 3 months. This was great, cause it would enable us to be under the median for the means test. Then today we got email from his new boss saying one of their employees was leaving and he wants him to go full time right away. So I guess insurance premium hikes, here I come! Hope I can come up with a workable schedule J!

[tobee43]

One major trade-off: mobility. Being free to move around the country easily means that people can go where the jobs are.

i think for the working generation today, this is key. i know when i really wanted my daughter to buy that house as soon as she moved last year, she refused and how smart, since her husband got laid off and now they are just picking up and moving closer to the city where more jobs are available for him and closer to her work. since so many people left the city for that "dream" home she was telling me her housing cost will drop over $300 monthly, besides she will no longer need $400 for gas. that was almost half his salary as a teacher! now, if they scale down the kids daycare to 2 days a week, (it was costing them $1000 monthly). well, they are UP after he loses his job, except medical. she makes too much for family care and too little to afford it! all the employer's in her state apparently and illegally hire key staff and administration people as "contractors"....so no benefits.

now..i just got that LLC going for her drop her income so she can get some medical.........forget the thought about ever buying a home. at least it's being shelved today!

[disconapper]

Home ownership is a great idea IF you never intend to move, at least in this current market. You never know what's going to happen though, you may need to move to find a new job. If you can't sell your house in time, you are SOL. If you rent, you are giving your money away and you will never see that money again. If you need to move, well you wait until your lease is over or you just leave. No matter what you decide to do you're still SOL. Although I would choose to buy only because I hate paying someone else's mortgage.

Agree with you on this one. My friends want to relocate to another city to get out of this high priced crazy area we live in, they even have jobs to go to if they want. BUT, they are stuck in their home with no chance getting out and they can't of course just walk like a renter could. It's a tough decision to make, for sure. As of now, I'm a fan of renting but it certainly does sometimes feel like I'm just tossing my money out the window, course I do like sleeping inside rather than outdoors, that's a perk to renting. I just don't see myself every really owning a home. And of course with my current situation, no one is going to give me money for a home anyway, so the decision at this moment, has been made for me. And I'm okay with that one.