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Home owner or renter? Why?

Trying to get a good idea if it really is better to buy. I would like these answered honestly. How much does your household gross? How much was your house? How much are your payments? How much do you pay in household repairs monthly? How much goes into savings each month? I ask these questions to family and friends and they are personal questions so I don't know if I get an honest answer.

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theboysmom311

Asked by theboysmom311 at 5:46 PM on Jul. 8, 2009 in Money & Work

Level 1 (0 Credits)
Answers (6)
  • i am 50 yrs old .my house is the best investment we have ever made.if you are a first time home owner you can get a credit.why do you want to pay someone elses rent for them.after a while you get equity.we have refinanced 3 times.i dont want to say how much we gross but my husband is a computer consultant.you dont have to have a high falutint job just be able to take care of your bills.do it you know you can....
    nana77500

    Answer by nana77500 at 5:51 PM on Jul. 8, 2009

  • Gross annual income> 28,000
    Purchace price of house> rent
    House Payment> 525month
    Household repairs> 0
    Saving/month>0

    For us at this point it is more important for me to be able to stay home with our babies, so we continue to rent. We have a nice, but small rental. There are no repair costs, no updating costs, no taxes.
    When my babies go to school, we will reevaluate our finances.
    Anonymous

    Answer by Anonymous at 5:54 PM on Jul. 8, 2009

  • You're forgetting one major component here...interest. And the cost of renting versus the cost of owning. Where I live, a month's rent is the same as my mortgage payment but I don't get any tax break by being a renter. The annual tax break for me is about $16,000 on mortgage interest.

    Here's what you need to examine:

    What's monthly rent for you?

    What would a mortgage payment be, and how much of that would be tax-deductible interest?

    If monthly rent and monthly mortgage are equal, then it makes no sense to rent because you're paying the same money with no breaks.

    Our house payment is 30% of our takehome. Repairs? $20/month if that...we've never had to do repairs. The house is new. Insurance: $120/month. Property tax: 1% of the home's assessed value, and that's tax deductible.

    For us, buying we the SMARTEST thing possible. We're living in our retirement.
    gdiamante

    Answer by gdiamante at 6:08 PM on Jul. 8, 2009

  • Our combined income right now is about $125,000. Our house (11 years ago) was $182,500; our mortgage ($110,000) payments are about $700 a month. Property taxes right now are $4,000 a year. Gas bill is $216/month (budget plan); electric $55 a month; water/sewer/garbage $300 twice a year. House needs a new roof this year, will run $6,000-8,000. We try to put $50-100 a week in savings for retirement and college.
    Anonymous

    Answer by Anonymous at 8:31 PM on Jul. 8, 2009

  • Income- $60k
    home price (10 years ago)- $100k
    mortgage payment (including property tax and homeowners ins) $850
    monthly repairs- not much or very often, but our home was new when we bought it, so in a few years we'll probably need a new roof.
    savings- about $1000/month but we are completely debt free except for the house, so no car payments or anything. Just regular bills like phone, electric, etc.

    Anonymous

    Answer by Anonymous at 10:32 PM on Jul. 8, 2009

  • Income - ~ $65-70K

    Home price - $118K (bought almost 2 years ago)

    Mortgage payment (includes taxes and homeowners ins.) - $836

    Monthly repairs - not much, most repairs my husband does

    Monthly Savings - my husband has money taken out before it gets deposited into our account that goes to his 401K and to stock options at his work - I don't remember how much is taken out - then we have $300 split between two IRAs, once our baby is born we'll also have money going to an account for her for college - probably around $100 or $200

    Our house was a fixer upper and we went from him going to school and me working to both of us working. During the short time that both of us were working all our extra money went to remodeling, which my husband did most of. We put about $15-20K into the house and it was paid off as we went. We have the master bathroom left but now I am not working, so it has been put on hold for awhile.
    Anonymous

    Answer by Anonymous at 10:50 PM on Jul. 8, 2009

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