I know I know. I've been totally delinquent in writing these days, but here's part of what's on my mind: to buy or to keep on renting. Since Aaron has some work right now, we've been pursuing the whole house-hunting thing and it's been a little discouraging. We qualify for not that much money - well, it's a lot of money but not for LA. What we can afford takes us far away from any of the areas or neighborhoods that we like or enjoy, but it could possibly get us a house. Granted, a house that would require some work and a yard that would look like a) a cement slab surrounded by dead grass or b) dead grass. As far as condos or townhomes, what we can afford gets us a two-bedroom smaller than what we are living in now with no outdoor space and most likely in a large complex and includes HOA dues. And takes us, again, out of areas and neighborhoods we enjoy. And not just enjoy, but also takes us out of neighborhoods and areas where our friends live, which means it takes us further away from friends and I already feel a bit isolated being home now with Haven all day.
Admittedly, it doesn't sound like there are that many pro's to buying, at least not in the brief way I've laid it out here, but I also have the message in my head that buying is a good way to invest money, whereas renting is just throwing it away. But do I want to invest in a place where I don't really want to be and in an abode that we'll most likely outgrow sooner rather than later?
I've also really really really been wanting a third-bedroom and to bring home my project table. I'm feeling a need for a space of my own again, to write letters, do crafty things, etc. And it doesn't seem like buying is going to get me that space...whereas renting might, although it would take us up to a higher rent bracket.
So, good friends, if you could all weigh in and solve this for me, I would much appreciate it. I'm going to go take Zoe and Haven for a walk. Haven is FUSSY as she saw no need for a nap this afternoon. Sheesh.
10 comments:
Get a bigger place to rent in a neighborhood you love!
If you don't plan on staying there forever, maybe renting is better. There is no guarantee you will make money down the road when you sell...and being a homeowner means lots of costs you don't think about when you rent: homeowner's insurance, property tax, etc. And when the plumbing goes out or the roof needs re-done, I would rather be a renter!
Jill
Well, we probably will be in Los Angeles forever...at least for the next ten years, I would guess, which would make buying worthwhile. However, I'm not wanting to put roots down in any of the areas that we can afford - it's just not where I want to live. And I think most of the places we can afford would need some work, so I think there's the question of whether or not we'd make our money back should we put much into a place.
And I agree - it's really nice to not foot the bill when the plumbing goes!
:)
chris and i have been having this exact same conversation. in chicago, a 2 bedroom, small, condo in a somewhat sketchy neighborhood runs you about $350,000. To get a full blown house with a yard in a decent/nice neighborhood, it's closer to 1M.
i just saw a PBS special on "rent or buy" and it talked about how it depends on each individual situation. I was raised in Iowa where owning a home was a passage into adulthood/familyhood. Then again, homes there cost about $150,000.
For Chris and I, if we buy we'll be spending the first 10 years applying payments towards interest not principal so there is no guarantee we would actually break even (let alone profit) on a home (especially if the roof leaks or plumbing goes out). So as long as we're in Chicago, it's wiser for us to rent and sock extra money into Roth IRAs or Whole Term life insurance policies. We'll actually make more money that way than we would in investing in real estate.
Now if we lived in Iowa, where we could pay principal quickly and actually end up paying off the house then of course owning is the wiser choice.
It's tough, because there's a part of my mind that feels childish for renting, like I'm not fully grown or responsible b/c we don't own a house. But it's the market we live in now.
I would talk with a financial advisor (not one associated with a bank who hands out mortgage loans) to get their thoughts.
I hope you enjoyed your walk! xoxo
sorry that post was so scattered, i was type 'stream of consciousness'
james joyce would be pleased
I can no sooner solve your dilemma than I can answer it for Michelle and myself. However, I do agree with the general wisdom that part of the answer depends on whether or not you intend to remain in the same area for a good long time. Since you establish that you intend to remain here for at least 10 years, I think house-buying should be an option to be considered.
Frankly, I envy you. We're not even at the point where, even if we WERE looking to stay so long (after the next year and a half, it's all rather uncertain), we'd be in any position to so much as consider buying at the cost of living around here. (I blame Fuller's low wages, personally)
i just read the post that was linked with the word "project table". and you asked for baby names and i said 'you should name her after one of your favorite female authors'
and then you did just that. :)
xoxo
shoot...Chris Hein's post was by Olivia McCain
Thanks everyone for your comments. I'm pretty sure at this point in my day that we are leaning more toward renting and most likely staying put where we are for the time being (we have a great apartment). I do wish that housing prices were more reasonable in LA. Sigh.
And Olivia, I was so excited for a minute because I thought Chris was commenting on my blog!! I mean, I'm excited that you commented but for Chris to comment would mean I'm up to like 8 readers!
Regardless, Chris/Olivia, you are right - I did take a cue from you on the baby-naming. When it's your turn, I'll try to return the favor.
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