Is owning a home really worth it? (Ranting)

[SweetGeorgia]

One of the ongoing points of contention in my marriage is that my husband wants to buy a home. He says that we are throwing away money paying rent. I say the first 10 years (at least) of a mortgage is throwing away money in interest. And we can't even use the home interest deduction at the moment.

Our rental home just got a $3000 plumbing repair. That's the kind of thing that makes me happy not to own. Just as a practical matter, we couldn't have managed it. We always used to have credit cards for that sort of thing.

Just to make it a little worse, I learned I would qualify for that Native American mortgage loan program. But you can't get them in Georgia. Oh, well.

[Floridagail]

I agree not sure if it is worth it. We are at the same crossroad. Not sure what to do when we let our house go finally. We sat down and figured out after 5 yrs of payments most all went to interest not much to principal. So we really threw away our 1400 month pmt.

[tobee43]

i can only speak from how i was raised. that in fact, renting was a waste of money and every time you paid your mortgage payment you are adding to your ownership, besides getting wondrous tax breaks from the interest and taxes.

not so, many now agree. one is my daughter, who still actually owns a home, (she sold her old house when she moved with a land contract), she now says never again, she and her husband don't want the headaches of ownership, repairs, assessments, tax increases...she said when the roof goes, i go with it.
i also have a cousin who's an extremely well established economist, very respected in his field, so i am told. he never owned a home. we were out for dinner in our prime years when i asked him, are you crazy or what. now this is the truth...we told me, just wait, this housing situation is going to be crazy 20 years down the road and properties will be worth nothing if not half of what was one paid for them. i said you are crazy, you were crazy as a kid and just because you are so smart means nothing LOL!!!! wish i listened to him. he does in fact own a lovely condo in calif., but he inherited it.

[JessMN]

NO. I agree with tobee's daughter - I don't want the headaches of ownership, repairs, assessments, tax increases, etc, etc. I was also raised to think home ownership was "the american dream", but after 9 years I decided it wasn't worth it. Now, if I was my mother , who actually enjoys fixing up her old house, then maybe I would think a little differently, but to be honest, I hate it and lived in constant fear of the old furnace going to pot. Much happier renting.

[AngelinaCat]

We live on land that my great-grandfather bought in 1860. I inherited it, otherwise it would be impossible for us to be able to purchase it even 25 years ago when 'Hub and I married. Maintaining the house--a relatively new house, as opposed to the 1871 farmhouse that burned in 2000--and worrying about raising property taxes is a continual struggle. Sometimes it would be nice to leave and move elsewhere, but we have to live somewhere, and then contend with the new situations, neighbors, et. al., that go with a move. Nahh--we're blessed to be where we are.

[AngelinaCatHub]

My two cents: We have no choice as our home is on family property owned since 1860 and on a river. Our house is paid for. Still, 5K taxes, damaged in 2004 hurricanes and four years of repairing and it still needs a roof. Now that we are broke, it is a board at a time and a little here and a little there. Our house without the land cost us less than 50K 25 years ago, so it has not gone down in value such as most. However the amount of empty houses around us is astronomical not in the least an exaggeration. A house like a boat, is a hole to throw money into. Just the upkeep keeps me too busy and I'm not getting younger. 'Hub

[goon]

I think it depends alot on your long term intentions.. If you plan to stay in a given area indefinitely than the long term value in buying a home (at a young age) is that eventually it will be paid off and at that point you only have to worry about maintenance, insurance, and taxes. At the end of the day those would certainly be less than a rent payment (averaged out), obviously if they weren't than no one would want to be a landlord. So in the scenario where you are staying in one place and you purchase early in life this could lead to reduced expenses later in life, as well as give you an asset that could be sold if necessary.

All that being said for many people renting just makes more sense.

[tobee43]

My two cents: We have no choice as our home is on family property owned since 1860 and on a river. Our house is paid for. Still, 5K taxes, damaged in 2004 hurricanes and four years of repairing and it still needs a roof. Now that we are broke, it is a board at a time and a little here and a little there. Our house without the land cost us less than 50K 25 years ago, so it has not gone down in value such as most. However the amount of empty houses around us is astronomical not in the least an exaggeration. A house like a boat, is a hole to throw money into. Just the upkeep keeps me too busy and I'm not getting younger. 'Hub

but really hub, bless you both, for keeping up that lovely property. it is important historically for more than a few reasons. i'm hoping once you fishish everyone elses roof you can come down this way to do mine LOL!!! i'm still crying over the 1871 farmhouse that burnt down what a tragedy.