About Owning a Home Instead of Renting a…Place

September 10, 2015 at 5:19 pm Leave a comment

First of all, if you go with a home security monitoring service, make sure you’re not locking into a contract, as you would with ADT.  (Admission:  I’m locked into a contract with ADT, so my opinion of them is undoubtedly distorted.  Obviously they’re a fine, great business.  More obviously I’ll be glad when my three years–rather, 75% minimum thereof–is over.  Another admission is that I have PTSD so I’d better quit talking about it.)

This is a pretty good article about the pros and cons of owning a home, actually.  It doesn’t mention that value of a home is completely relative and that buying a home as an investment is ridiculous.  It’s exactly on a level with buying a home in company with one’s spouse in the knowledge that if the spouse predeceases you then the home is yours (the mortgage is completely paid) and therefore knowing* that you’ve made an immense profit.  On the whole buying houses as investment unless they are not bought with the intent of using them as homes in the long term is an idea not likely to work well.  Home mortgages are long-term.  Mine is 30 years, which is standard.  I’ll be looking into refinancing soon I’m sure; I’m also pretty sure I won’t do any better, which means almost all of my payments are…finance, of course.

If I rented it that would take care of the payments, which would leave the matter of maintenance–which is rather different in the matter of townhouses, but I shan’t go there.

The relative value of building, home, ‘house’, whatever needs to be investigated relative to the possibility of a bubble, and examined very closely, if one is buying in order to rent out in order to…  The death of said bubble is the death of the profit at least momentarily.  Payments don’t go down when value does, which is why I was able to buy relatively cheaply in an expensive neighborhood, I’m sure.  I’m not depending on the value of the property for anything, except perhaps a walkaway option should it become necessary.  I made a huge down payment preparing for just that.

Before you buy please think closely about all the things I’m “hinting”.  For one thing, “relative value” means that the value today will not match that of an uncertain tomorrow.  The question is when the change comes and whether it’s favorable or negative.  It will change.

As far as ADT goes I mentioned that primarily for one reason.  You’re going to make some bad decisions, too.  Try not to lack yourself into contracts, and try to make sure to avoid contracts you might not be able to afford.  I find this very irritating.  That’s all.  For another person, this or another contract could be that final straw decimating the camel’s back.

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