Is it BAD to not own a home?

2360 Views 32 Replies 23 Participants Last post by pollypurebred39, Jan 17, 2011

dancemommy

Discussion Starter · Jan 12, 2011

We bought our first home in the mid-90's. It was tiny and relatively inexpensive. By the time we had 4 kids we were way too crowded and dreamed of a larger home. My husband then had some bad luck in his career with a layoff and then underemployment. We ended up in debt. So, several years ago we sold our home and paid off all of our debt. We now rent a home that is much larger than the home we had. We pay more than we did for our mortgage, but not an extravagent amount and it has been so helpful to have a home that fits our family and that we can run our business out of. We have had a good year business wise. We've been able to pay off all of our debts, but we have not saved much money yet. It'll be a while before we can buy a home again and by then we will also have kids going to college. Is it BAD to not own a home and just rent? Oh, we rent a home from a relative and have no risk of having to move or a huge rent increase.

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lisaflex

· #2 · Jan 12, 2011

i personally dont think so...but, does the family landlord report to any agency in regards to pymnts? that may be helpful...look into it if possible and if you do plan on owning in the future...just a thought...

if you are doing what is right and feels right for you and your family, than there is nothing wrong with it..imo

Pianolady

· #3 · Jan 12, 2011

Not bad at all. Home ownership is not the American dream it once was, especially if you bought high and lost equity in the house. There are pros and cons for ownership vs. renting, neither is bad.

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Darlene

· #4 · Jan 12, 2011

Bad, no. Everybody has their likes, dislikes, things they want to spend time & money on & things they don't. Doing what's best for you is always priority #1.

mndtrp

· #5 · Jan 12, 2011

Absolutely not, despite what some people will tell you. One thing's for sure, the stress level goes way down with regards to repairs. I don't think I would live in an apartment any time soon, but someday I might look into a detached rental of some sort.

larabelle

· #6 · Jan 12, 2011

No it is not bad...in fact it is good in regards to repairs-which the landlord is responsible for....however I think it depends on your individual situation....I think people should do what is fiscally good for them.

Syn D

· #7 · Jan 12, 2011 (Edited)

I prefer renting... We did own a home once, but have no future interest in doing it again.. The increase after our company sold their accounts in our state to another company was way beyond our financial means, plus the up keep, it just got way to costly for us and we just gave the house back to the company...

As for renting, we live in a 2 bedroom house and we did get lucky on a landlord here, they are great, they fix any problem with out complaint, replace things if THEY feel it needs it, our rent hasn't been increased at all in the 3 1/2 yrs we've been here, etc.... We've had very bad landlords (one could be considered a slumlord), bad ones, good ones and 2 great ones...

The Muse

· #8 · Jan 12, 2011

I don't think there's a one size fits all answer to this. It depends on your situation.

I struggled with this question last year when I divorced and moved to Denmark. Our house had a lot of equity and I walked away with half in my pocket. Still, having owned a house for 9 years, I wasn't comfortable throwing out $2,000/month on rent for an ok place, dealing with a landlord, and most likely losing my deposit when I moved out. So, I bought and have a very small loan. I freak out a few times a week about what will happen when I decide to move out of the country if I can't sell, but I bought at the bottom of my price range, and it's a beautiful flat in a good location. For me, the risk was worth the increased quality in living environment. I just hope to break even when it comes time to sell.

But that said, having a paid off home is important to me and it's within my reach. If that is not important to you, or is not feasible for you, then I don't see much difference between renting and owning. In fact, renting probably has more advantages in that you do not have to pay for surprise repairs, don't have to worry about selling if your financial situation changes or you want to move, etc. I don't think that paying a 30 year mortgage on schedule is a smart financial move.

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Greebo

· #9 · Jan 12, 2011

No it isn't bad. It can be quite good not to own a home - when owning a home would work against your long term success in life. For instance, buying a home when loaded with consumer debt is counter productive because you end up staying in debt much longer, thus paying more interest to your consumer debt while simultaneously now paying out tons more interest on the home itself to a bank.

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Nellonello

· #10 · Jan 12, 2011

I don't think so. My uncle is one of the most frugal people I know. He is worth millions but rents the bottom floor of a house. We live in a high cost of living area and he only pays $395 rent including all utilities so he has no incentive to move.

Dancing Lotus

· #11 · Jan 12, 2011

Depends on lot on your lifestyle and priorities. I think I prefer renting because we like to move, and I don't like being responsible for repairs. I'd much rather know what my fixed expenses are and spend my money on other things. We love to travel and have hobbies. I want to play on the weekends not mow the lawn or fix a roof. Been there done that, no thank you.

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CrazyCat

· #12 · Jan 12, 2011

here's my take on this.

I don't want to be in my 60's...and worrying about where I'm going to live. I'm 50..and in 7 years my house will be paid off. Then the only money I have to come up with is property taxes and utilities. I can't wait for that day~!

it's all fine as long as you have a landlord that's going to keep the house you're living in. BUT..say he decides to sell...and the new landlord increases the rent to an amount you couldn't afford?
What if rental properties are hard to find? We are living in a world with an awful lot of foreclosures. Those people have to be living somewhere...they are renting or living with family until they can rent.

No thank you. I'd rather have a chance of OWNING the home I live in now.

Reactions: 1

miss_cas

· #13 · Jan 12, 2011

Renting isn't necessarily worse than owning. You can move when you want. In some cities, renting is cheaper.

G

· #14 · Jan 12, 2011

No, it's not "bad." It depends on your situation. You have a lot more flexibility as far as moving. You have a lot less maintenance. You don't have to worry about spending tons of $$$ on a new roof or if the furnace breaks. There are many positives to renting. The whole idea of the American Dream with a white picket fence is oversold and a big fantasy that's been pushed on people who didn't need it.

I have rented and now I own, but I can see renting again when I get older in retirement. The last thing I want to have to worry about when I'm really old is having to sell my house, or even worse, having to worry about my children trying to sell my house.

Greebo

· #15 · Jan 12, 2011

CrazyCat said:
here's my take on this.

I don't want to be in my 60's...and worrying about where I'm going to live. I'm 50..and in 7 years my house will be paid off. Then the only money I have to come up with is property taxes and utilities. I can't wait for that day~!

it's all fine as long as you have a landlord that's going to keep the house you're living in. BUT..say he decides to sell...and the new landlord increases the rent to an amount you couldn't afford?
What if rental properties are hard to find? We are living in a world with an awful lot of foreclosures. Those people have to be living somewhere...they are renting or living with family until they can rent.

No thank you. I'd rather have a chance of OWNING the home I live in now.

Valid points - but if you don't really care WHERE you live and have ample money for retirement, you can rent just about anywhere you like.

Frugal Nurse

· #16 · Jan 12, 2011

CrazyCat said:
No thank you. I'd rather have a chance of OWNING the home I live in now.

But do YOU own the home? or does the bank own the home

I think for each individual you have to weigh it out. Owning a home for the OP is obviously a huge stressor. They no longer have stress. They no longer have debt either. When they're ready, they'll buy a small home for the 2 of them because the kids will have grown and gone.

mndtrp

· #17 · Jan 12, 2011

Frugal Nurse said:
But do YOU own the home? or does the bank own the home

I believe she's talking about once it's paid off in 7 years.

If someone is only 7 years from owning their house, it would take something pretty drastic for me to recommend switching to renting.

Dancing Lotus

· #18 · Jan 13, 2011

I wanted to add that I do intend to own again but not for a while and when I do very little if any will be mortgaged.
There are a lot of factors to consider when deciding to rent or own: age, income, lifestyle,what types of other debts you have.
At this stage in my life I'm just not sure where we will be even 3 yrs from now and that's why renting makes more sense for us.
But NO renting or owning are neither good nor bad. You have to live somewhere.

Daisygirl

· #19 · Jan 13, 2011

The bank and I owned a home and now it belongs to just the bank. I thought I was in a good position to buy because I had the downpayment, but it seems that I was not thinking about the taxes, the insurance, and the repairs.

I really doubt that I will try home ownership again. I like being able to pick up and move and I like being able to call someone else when there are repair needed. And I no longer have to mow the lawn - HOORAY!

arnie

· #20 · Jan 13, 2011

As everyone else stated, it depends on each individual and their priorities. Also, as others have stated, is it better to be mortgaged out the wazoo on a house too big and elaborate just to say you own the house, or are you better off renting something within your budget? Ownership has advantages, but so does renting. Do what makes you happy.

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