Is homeownership a big PITA?



whiteslashasian said:

How do you find the other more menial duties of homeownership? Mowing the lawn, trimming hedges, shoveling snow, cleaning gutters, repairing or replacing random crap that breaks (e.g. major appliances), dealing with neighbors or HOA (not sure if applicable)...? Any stories to share?

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My home is a small, simple two bedroom affair--about 1,300 sqft. I live in the Deep South and have never needed to shovel snow. The lot isn't huge, but is larger than many. I actually enjoy many of the menial maintenance tasks like mowing, trimming etc.

I've had to make a few repairs in places, patch up drywall etc. I've had to replace most of the sink trim in the kitchen and both bathrooms. I've needed to fix a couple of leaking water lines, a dryer vent, a minor AC compressor issue, to name the few items which come to mind. Nothing has cost more than $100 to repair (most less than $20), and hasn't been especially difficult. I am about a finish a mechanical engineering degree though, so ymmv. Also keep in mind this is a relatively new home.

One of the best aspect of owning my home has been the lack of restriction on upgrades/improvements. I've installed track lighting, wood floors (cheap laminate stuff, $1000 total for both bedrooms and improves the look unbelievably), and built in shelving since I bought the place. Stuff like this has been irreplaceable in making this domicile actually feel like my home.

Dakota rube said:

Make sure you satisfy the residency and owner-occupancy rules: the tax credit has to be paid back if you mess up.
(This is not to be construed as legal, tax or real estate advice. Contact a professional in your jurisdiction.)

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I consulted an accountancy firm before I made any moves. I did receive a bill once from the IRS for $8,800 (original credit + interest) because a document I had mailed them didn't list my bank's address. Easily cleared up after I sent them another copy. The only stipulation is that I remain the owner-occupant for three years from the date of purchase. After that, I can sell/rent the place as I see fit.

It also depends on where you live. In Montreal renting right now is probably 1/2 the price of buying a similar place. Paying that type of premium totally prevents most people from investing or even saving anything, which is financially marsupialed.

Yet the whole "Home prices ONLY GO UP!!!!!!!" foolishness persists and everyone thinks their crappy condo is going to double in value in 3-4 years.



Lord-Barrington said:

It also depends on where you live. In Montreal renting right now is probably 1/2 the price of buying a similar place. Paying that type of premium totally prevents most people from investing or even saving anything, which is financially marsupialed.
Yet the whole "Home prices ONLY GO UP!!!!!!!" foolishness persists and everyone thinks their crappy condo is going to double in value in 3-4 years.

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This is a good point. Many people seem to think that buying a home is the best investment they can make. I'm not convinced. I get the impression that real estate in major Canadian cities is generally overpriced and it doesn't make much sense to me for a first-time buyer to borrow $100K+ for a small condo. Prices can't go up much more - they're already out of line with average income.



JohnnyLaw said:

This is a good point. Many people seem to think that buying a home is the best investment they can make. I'm not convinced. I get the impression that real estate in major Canadian cities is generally overpriced and it doesn't make much sense to me for a first-time buyer to borrow $100K+ for a small condo. Prices can't go up much more - they're already out of line with average income.

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Prices in Montreal aren't great and they're slightly worse in Toronto. Vancouver has one of the most overpriced property markets on earth, probably second only to Sydney. That place is a ludicrous property bubble.

renting blows. id rather be in control my my own destiny - not worried when the lease will end, when rent inspections are etc

JohnnyLaw said:

Lord-Barrington said:

It also depends on where you live. In Montreal renting right now is probably 1/2 the price of buying a similar place. Paying that type of premium totally prevents most people from investing or even saving anything, which is financially marsupialed.
Yet the whole "Home prices ONLY GO UP!!!!!!!" foolishness persists and everyone thinks their crappy condo is going to double in value in 3-4 years.

Click to expand...

This is a good point. Many people seem to think that buying a home is the best investment they can make. I'm not convinced. I get the impression that real estate in major Canadian cities is generally overpriced and it doesn't make much sense to me for a first-time buyer to borrow $100K+ for a small condo. Prices can't go up much more - they're already out of line with average income.

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100k....sign me up! $500k in this area and $200k in the surrounding areas for a townhouse. IMO It makes perfect sense to buy one in that range, I'd be amazed if the average rent were cheaper in the same area.

I had a house for 3 years, it sucked. I didn't even lose money on it and it was actually a nice house. I recently sold it and moved into an apartment and couldn't be happier. Of course it took me awhile to find the right apartment though which is key.

Reasons it sucked: constantly dropping $200 at home depot, property tax increases, neighbors with barking dogs, yardwork, shoveling snow, living in fear of major repairs. I also realized I don't like feeling married to a "thing". These are just a few. I don't think it's a great investment either at this point- the values are being propped up by low interest rates.

I will never buy real estate again until I have kids. It is simply too much headache and there's other things I enjoy doing with my time.

For myself, it is unlikely that I would purchase a home. For my wife and children, however, it is much better than renting.

And yes, it is a pain **********. On the other hand, most "stuff" is.

I have never owned, and I don't really regret it. I have always lived in pretty nice apartments, in great neighborhoods. I don't have to worry about the nieghbors, because if they are really ******, I can move. I now rent from a corporation, so I don't have to worry about maintanance or anything (as a matter of fact, men are painting my bathroom right now). my overall cost of my residence is about 15-18 percent of my takehome, and I save about as much every month as I put into the apartment. I really wanted a yard set up a playground for my kids, and to have barbeques. then, a friend of mine told me how he took down his playground stuff, because his kids prefered to go to the park, and I found out I can rent a park from my city to have barbeques for 35 bucks. so, that killed that reason to own a home.



SkinnyGoomba said:

100k....sign me up! $500k in this area and $200k in the surrounding areas for a townhouse. IMO It makes perfect sense to buy one in that range, I'd be amazed if the average rent were cheaper in the same area.

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me too. 2mil for a semi-decent house here and 1.3 for a townhouse. Buy at a 100k. Buy.



SkinnyGoomba said:

100k....sign me up! $500k in this area and $200k in the surrounding areas for a townhouse. IMO It makes perfect sense to buy one in that range, I'd be amazed if the average rent were cheaper in the same area.

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$250-300K in Toronto (desireable locations) for 600SF 1 Bdrm, FYI. Same place would rent for ~$1500.

Houston is inexpensive and wonderful.

I just sold a home in a good, gentrifying neighborhood ( Washinton strip/ Memorial Park area ) for $299K. I knew a little and bought it a few years back ( for a lot less ) as a teardown on a very good block with lots of new construction. Even with the downturn I sold it to a developer who will build spec town homes.

I will miss the garage apts I had, and the storage building in the back. I'll also miss no contiguous neighbors. But I am fine with leaving it.

I moved to a 16th Fl. hi rise in the Galleria area as a rental. A one year lease while I regroup. At first I was neutral about it but now I am beginning to like it.

For conne I would say that historically it has been wise for young people to buy a house soon out of college.

But these days I think that is more location sensitive and situation sensitive than ever.

If you are not sure you want to own conne. And not sure you can comfortably afford a home purchase I would wait.



rnoldh said:

Houston is inexpensive and wonderful.
I just sold a home in a good, gentrifying neighborhood ( Washinton strip/ Memorial Park area ) for $299K. I knew a little and bought it a few years back ( for a lot less ) as a teardown on a very good block with lots of new construction. Even with the downturn I sold it to a developer who will build spec town homes.
I will miss the garage apts I had, and the storage building in the back. I'll also miss no contiguous neighbors. But I am fine with leaving it.
I moved to a 16th Fl. hi rise in the Galleria area as a rental. A one year lease while I regroup. At first I was neutral about it but now I am beginning to like it.
For conne I would say that historically it has been wise for young people to buy a house soon out of college.
But these days I think that is more location sensitive and situation sensitive than ever.
If you are not sure you want to own conne. And not sure you can comfortably afford a home purchase I would wait.

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I had a very good job offer awhile back in Houston and couldn't bring myself to move there. Too much traffic, too many strip malls, and too little of anything interesting, as far as I could tell. The rock bottom cost of living was a definite draw, though.



Lord-Barrington said:

I had a very good job offer awhile back in Houston and couldn't bring myself to move there. Too much traffic, too many strip malls, and too little of anything interesting, as far as I could tell. The rock bottom cost of living was a definite draw, though.

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Well traffic at least is not that bad. Definitely better than NYC and LA.

I currently own 8 pieces of residential property. (All Semi-Detached)
Fortunately, my city is 'home' to amazing property values.

Each 1500 sqft. semi cost ~129k per side, and rents for $1k-1.5k/month. (Two are next to a university, and thus renting by room yields greater returns)

All property is less then 5 years old, and repairs are VERY minimal. (I'll sell these prior to the 10 year mark in an effort to avoid roofing bills, foundation issues, etc.)

I should also mention that I don't take a dime from these properties... I consider them a long term investment... Property has seen an increase of 8% per year for the last 10 years, and shows no signs of slowing down.

Also, throwing 1k-1.5k a month at a 129k mortgage doesn't take long to pay off!