Comments on: Things I Didn’t Think About As A Renter – Top 10 Hidden Home Ownership Costs

By: Nancy

Nancy — Mon, 11 Apr 2011 02:58:46 +0000

I was renting for 15 years and now I have been owning for 10 years. The difference I would say is when I was renting, anything that I wanted to do to the unit I had to first clear it with my management office prior to any working being done. I was not able to have a washer and dryer nor a pet. I could not paint without approval nor put down carpet. I had thin walls and heard all my neighbors all the time. Parking was an issue as well. My rent went up every two years at 4%. I first got my apt in early 90′s a one bed room adjusted to my income and my rent was 355.00 a month. After obtaining my Bachelors, a higher position and transferring to a two bedroom, my renting ending in 03 at 760.00 a month and would have continued on upward every two years from that.

But now as a homeowner, I am able to do what I want to do without any problem. I get a healthy tax write off from my interest paid to the bank. I have my own driveway and planning on building a garage, installing a hot tube and grow my own veggies. I pay about 1300,00 in mortgage and happy to do it. Now, I am seeking a grant to fix it up.

By: Will

Will — Thu, 04 Dec 2008 19:11:38 +0000

I’ve long been a renter for many of these reasons and more. I think there are many hidden costs in addition to these that are almost always ignored or glossed over. It’s not a surprise considering there is an entire industry out there (realtors, home depot, federal state and local governments) that want to convince you that buying is the only thing that makes sense. Who’s advocating for renting? Ikea?

A big big huge huge huge one that is ignored is opportunity costs in personal time. Seems like most house owners are constantly fixing and upgrading etc (whether needed or not). If you make a low income, this can be worth it, but if you are highly paid, many people would be much better off using that time to make more money.

Of course it always comes down to individual situations, but it is good to see posts pointing out some hidden issues.

By: Raymond Kirk

Raymond Kirk — Wed, 08 Oct 2008 11:15:33 +0000

Wow, I never knew this hidden home ownership cost. That’s pretty interesting…

By: Carnival of Real Estate

Carnival of Real Estate — Mon, 02 Jun 2008 23:19:19 +0000

[...] ‘Things I Didn’t Think About As A Renter: Top 10 Hidden Home Ownership Costs’ posted at The Happy Rock [...]

By: Pete

Pete — Wed, 28 May 2008 13:26:41 +0000

The British have the same mentality when it comes to owning a house, the problem is they are willing to give up on average 40% of their income to own their own property. The Germans have a better system, they buy the land from the church and have repayments over a lifetime, therefore making sure they have plenty of equity to purchase their expensive cars.

By: Term Life Online

Term Life Online — Wed, 09 Apr 2008 13:20:10 +0000

Although there are hidden costs associated with buying a home, there are several benefits.

The right off on your taxes for the mortgage interest payment.

Also, the appreciation of your home over time. In some areas of the U.S. home values have increased at up to 10% or more per year. Although there are cycles in property values, if you can hold onto your home for several years, and you’re in a good location, you may make a very good return on your initial investment.

By: Carnival of Real Estate - Trulia

Carnival of Real Estate - Trulia — Mon, 25 Feb 2008 21:59:51 +0000

[...] ‘Things I Didn’t Think About As A Renter: Top 10 Hidden Home Ownership Costs’ posted at The Happy Rock [...]

By: Jacksonville Fl Realtor

Jacksonville Fl Realtor — Mon, 25 Feb 2008 17:53:21 +0000

Taking the leap into home ownership is a wonderful adventure that should be taken only after you fully explore the complete financial picture. Dealing with a professional team when buying a home will help give you the full disclosure you need to make an informed decision.

When dealing with a Realtor you should be given a closing cost estimate sheet that will show you what your closing cost will be. Thus you will know how much cash you need to bring to closing.

In addition, the Realtor will ensure you are fully aware of any HOA fees or any other obligatory fees that you will be paying as a new homeowner.

The Realtor together with your mortgage broker will also provide you with what your monthly payments will be. You will be able to see how much of your monthly mortgage payment is going to principal, interest, taxes and insurance.

In Jacksonville Florida the local utility companies will provide you with the monthly average utility bills have been for the seller.

Taken together this will give an almost complete picture of your cost outlay for buying the house and your monthly cost for carrying the house.

Rock provides a great list showing many of the costs of homeownership. Should the hassles & maintenance of a single family home seem like it is too much for you then you might consider a condo. Condos associations usually take care of the exterior of the unit. However, you still pay for the maintenance through your condo fees.

The first step to exploring home ownership should be finding a group of professionals that you will give you the advice you need to make the right decision.

By: The Happy Rock

The Happy Rock — Sun, 24 Feb 2008 01:14:55 +0000

We were paying $850 in rent, and moved into a similar sized housed and all house expenses run at least $1300. That is a lot of money that can be invested or freed up to do other things.

By: Shadox

Shadox — Sat, 23 Feb 2008 23:39:15 +0000

Mr. credit card – that argument makes no sense. Sure when you rent you have a monthly recurring cost – but the amount of money you save i.e. all the money that you did not sink into the house can be put to good use and generate an alternative income. In a rational economic environment, buying or renting would be exactly equivilent from an economic perspective (when taking into account all costs and all alternative income streams).