Being A HomeOwner: For Now, It's Not For Me

One of my 2009 goals was to get on the path to homeownership and possibly own a home by the end of 2010 or the start of 2011. I've decided against that into the foreseeable future. Right now, I don't want to own a home.

As I think about goals for the rest of the year and the radical decisions I'll make that will likely affect me for years to come, I looked at some of my financial goals from 2009, which included getting on the path of homeownership.

So, I seriously considered it. I read a book about it. I looked at home prices in areas I was interested in living in. And then I dropped the whole thing.

What stopped me? The thought of putting down 20% of anything from $180,000 for a serious fixer upper to $400,000 or more for something as simple as a condo in downtown D.C.! If I managed to save $36,000 or twice that in cash, I couldn't imagine myself dropping it all at once and certainly not on something that would have me in debt for the next 30 years. I examined the reasons homeownership was a goal for me in the first place:

• It seemed like the grown up thing to do.

• I liked the idea of having something that was mine -- that I really owned.
  

• I visualized inviting friends over for dinner parties, decorating the way I wanted to, having my little cousins stay over on weekends, hosting visiting family and friends for tourist weekends, hosting Thanksgiving and Christmas for the first time and for years to come.

• I'm an independent sister who wanted to do it for herself!

None of those, not one of them, was a good enough reason to commit to the expense and responsibility of owning a home. What if I wanted to change jobs, careers, and had to move? What if I just wanted to move for the hell of it? I'd have to sell the house or hope to get renters that would essentially pay the mortgage. Easier said than done. I also have no interest in being a landlord anyway.

And the paperwork! I got nauseous filling out all the paperwork it took to buy my car! That's squat compared to homeownership. The taxes. The repairs. The upkeep. I clean my floors with a Swiffer, which is to say that I don't really clean my floors at all.

After I decided that I wasn't going to work on buying a home in the next year or so, I actually felt relieved! Just the work it would take to find the right place and buy it seemed like more of a burden than I cared to take on.

I may not always feel this way. At some point, it might become really important to me to own my own place. Maybe. But not now.

I can also find fulfillment and accomplishment in plenty of other places. I can also save and invest my money for a future that is becoming clearer to me little by little.

Those of you considering buying a home, why do you want to?

Those of you who want to stay renters, why would you continue to rent?

I'd love to read your thoughts.

DH

Comments

[LaShaune]

Every homeowner yells at me, but I will say - DON'T DO IT!!!! Unless you plan on having children (I don't).

My situation is very different b/c in a sense I'm still renting, although I pay the mortgage, the insurance, taxes and all the repairs associated with the home. But technically the home is in my mother's name.

I am so over all the responsibilities of repairs and maintenance. Yes, I love the space. Yes, I love my HUGE yard. No, I don't love my hood. No, I don't love having to be responsible if the boiler, hot water heater, or AC in the middle of Texas Summer breaks (thank goodness for home warranties).

At the time, it seemed like a great investment. Progress was coming to this area of town and then....the economy went to crap! Oh well.

I like the idea of renting for much less than what I'm paying now (Oh how I miss my All Bills Paid condo at $700/month!). And when I can get out of this home without any negative feelings between my mom and I, I will downsize and sock away all the extra money into savings, investments, and travel.

Being house poor is NOT fun.

[LaShaune]

I've read several variations of this comparison and b/c of my situation ,it fits me. But we all have to do what's right for our individual needs.

http://www.getrichslowly.org/blog/2007/07/16/renting-vs-buying-the-realities-of-home-buying/

[Z]

I haven't even "stepped up" to renting a house yet. I've shared a house by renting a room with full house priviledges, which worked out quite well. Four bedroom house, four guys, a few rotated through, but it was all good folks. For the last few years I've been lucky in that I'm staying in my parents' place while they work out of state (and for awhile were out of country). Currently rent free, but I do pay for taking care of things as needed. Which did include the new water heater. (thankfully, they did step in and help with the new heat pump and HVAC system last year)

Once they move back, not sure what I'll do. Been rather nice not living with anyone else, so probably won't do the roommate thing. Most likely find a small house to rent, with a small yard (yet hopefully a large garage).

[Healthy Amelia]

It sounds like you’ve really thought this through and you’re doing what’s best for you. Everyone’s situation is different and I’m never in favor of doing what you’re “supposed” to be doing. That being said, I just bought my first house :) But then again, I’m ME and you’re YOU. My reasons included wanting to start a family soon and needing space for that, wanting to host holiday dinners, and having space for overnight guests. My husband’s reasons included having a man cave and hmmm… that’s pretty much it! But seriously, I just did the math for our situation – if we rented a larger apt near a metro, it would cost as much if not more for less space than what we’re buying near a metro (our biggest location priority). We lived in a small one bedroom basement apartment for SIX years so it’s not like we’re rushing into it! We’re thrilled with our decision because it’s just right for us right now. And if it wasn’t for the (hopefully) impending kid-factor, we’d really have no reason to move.

[Cute~Ella]

I love renting, if something goes wrong, they have to fix it (and in my area, they have to be quick about it or face steep penalties if we complain) I don't worry about lawn care, upkeep etc, just cleaning. I can also leave whenever I want and my lease specifies that with 30 days notice I just forfeit my deposit. Freedom is worth a lot to me because I'm looking for a new job.

Next year I'll prob move into a bigger place because my boyfriend and I are talking about moving in together and if that happens maybe we'll look to buy something if/when we have kids.

Not really thinking about it. Taking my great deal and enjoying it!
My place is small, very small which presents challenges, but it's fun and just me so...Plus I have a great deal.

[StacyWash]

I've owned in the past, and have no desire to do so again. I'll not go as far and say never, but it is definitely something that is not part of my 5, 10 or 15 year plans. I have one adult son, who I'm migrating out of my living space now and another young son who will be leaving in the next 8 years. After that, I'm hoping to travel more and do things that I help to expand my experience. Renting seems more suitable to me for this.

[Anita Hampl]

Go slow! When you calculate a mortgage, PMI, taxes, etc. it may all look doable.

But the Realtors never seem to mention the extra things new homeowners will need, like a lawnmower and fertilizer and termite inspections and snow shoveling and on and on . . .

You wrote a thoughtful post which should help lots of people. Kudos!

[Jerry]

If you're not ready, you're not ready. But, like Anita says, if you look at the mortgage taxes and insurance you may be paying less than renting. It's up to you. If it leads to too much stress, don't do it.

[Karen]

I own/will own. I have one place rented (different state and can't sell without losing money. The rental income covers the mortgage) and about to close on a house where I reside.
I dislike close neighbors, like my own parking, want a yard for my dog, my housing cost to stay the same.
Karen

[Stephan]

I think basically what you need to consider first is if you can afford the house. renting is obviously much cheaper, but you can not build up equity and see potential profits in the future since all your money is going straight to a landlord. If you can keep up your lifestyle after buying a home, go for it, if not, keep saving and eventually your time will come.

www.pfsdebtrelief.com

[mapgirl]

meh. In DC, it's not really worth owning here. Be carefree and flexible and keep renting. Unless you know you want to stay here for 10+ years, don't bother. Having a house will hamper you if you want follow a job to another city. (Tim Geithner is having a hard time selling his place in CT to come work in DC. Ironic, no?)