I have been lurking here for quite some time, and just had to respond to this thread. I am very confused about owning, buying and renting–let me explain….
I am in a somewhat odd and unique position. (I don’t make as much money as the rest of you, so please bear with me…)
I rented a home in December 1999, for a SUPER BARGAIN price. I got lucky because I knew someone and got the hook up. The buying frenzy was just beginning. I fed into the group think, and because I didn’t have enough money alone, I bought a house (July 2001) in a lesser quality neighborhood with a friend. Because the mortgage at the owned house was actually MORE than my rent, and I lived in a better house in a better neighborhood, I could not see moving! We rented the house and the rent did not cover the mortgage and we each paid out of pocket.
In 2003 we refinanced the house. Rents have gone up and new tenants moved in. We are now making a small profit of $150 a month. I am still living in the rental house at the SAME price, but I worry that the landlady will die and I will get the boot. If that happens, I really don’t want to move into the house that I own but it would be much more affordable than finding a rental similar to what I live in now.
Recently, I have inherited $40K. I am wondering what to do with it—should I buy another home that I would prefer to live in eventually when my luck runs out here?
Should I wait it out a few more years?
I agree that renters are definitely “looked down” upon in this society, and that is too bad. My father always rented, and discouraged me to buy. He always disagreed with the concept of renting is “throwing away money.” Consequently, he was force fed by the wife to buy a home in Santa Cruz over 10 years ago–presently it is worth a lot, and he was mid 50s for his first homebuying experience)
It does seem that owning a house is good for retirement, right? Pretty much you are going to be on a fixed income, so a house that is near paid off seems a good idea.
