Home Ownership: the path to slavery

[texrex2002]

anyone renting that thinks they're not paying taxes/insurance/homeowners ass., maintenance must be a total idiot.

(well, maybe they're renting the basement from their mom or something)

 

[TraderZones]

Quote from dcvtss:

What about property tax, insurance and maintenance? You are never done whether you rent or own.

It partly depends on where you live. Most people rent a couple bedrooms and most owners have land and much more room/storage and other amenities.

If you rent an entire house, the maintenance is often your baby.

In some parts of the country (away from metro centers), houses can be downright cheap.

Seniors who rent are usually worse off than seniors who buy. And seniors often get a big cut in property taxes in many areas.

 

[illinimatt81]

Quote from OldTrader:

I still have never met a renter who had a big chunk of money saved up in the bank or invested somewhere. And I've been renting houses out for most of my adult life.

OldTrader

Consider me your first. I gladly rent a luxury 1 BR Condo in Chicago and am not considering buying anytime soon even though I could easily do so. When you can live with a gf in Lincoln Park right on the lakefront and have all utilities paid by the landlord, underground parking and not pay taxes, association fees, maintenance, etc for $800/month why bother? The apt is $1600 (I split with my gf)

I may move to an even nicer place for $1200/month which would lower my share to $600.

Good times.

 

[illinimatt81]

Quote from texrex2002:

anyone renting that thinks they're not paying taxes/insurance/homeowners ass., maintenance must be a total idiot.

(well, maybe they're renting the basement from their mom or something)

It is being done in cities across America now. Landlords are taking a bath with over supply of rental housing and people renting out their condos in the "shadow rental market"

 

[377OHMS]

Quote from illinimatt81:

Consider me your first. I gladly rent a luxury 1 BR Condo in Chicago and am not considering buying anytime soon even though I could easily do so. When you can live with a gf in Lincoln Park right on the lakefront and have all utilities paid by the landlord, underground parking and not pay taxes, association fees, maintenance, etc for $800/month why bother? The apt is $1600 (I split with my gf)

I may move to an even nicer place for $1200/month which would lower my share to $600.

Good times.

But where do you put the 3 cars, truck, boat, toyhauler, motorcycles, dogs, shoptools, compressor, grinder bench, lathe, welders, surfboards, skiis, scuba gear, home theater, library, shaving den, pool, sauna, pond(s), barbeque, gym equipment, guns, 4 bicycles, coffee roaster, observatory, and other vitally important stuff necessary for basic survival?

Try Elmhurst. A twenty minute train ride to Ogilvie Transportation Center (the old Lasalle Street Station) then you can walk almost anywhere in the city, even in the winter. Elmhurst is a nice small town with some very nice homes and a little room to spread out. You can make a little money on a house out there if you purchase very carefully. I used to own the original town doctors home (built 1927). There are running and cycling trails around the town. Having a little room to spread out made Chicago bearable.

A one-bedroom in Lincoln Park would drive me nuts in a week.

 

[wilburbear]

Quote from illinimatt81:

Consider me your first. I gladly rent a luxury 1 BR Condo in Chicago and am not considering buying anytime soon even though I could easily do so. When you can live with a gf in Lincoln Park right on the lakefront and have all utilities paid by the landlord, underground parking and not pay taxes, association fees, maintenance, etc for $800/month why bother? The apt is $1600 (I split with my gf)

I may move to an even nicer place for $1200/month which would lower my share to $600.

Good times.

Bingo.

I know a 1 bedroom condo owner in Chicago. Property taxes, insurance, condo fees, maintenance, etc. get her 70% of the way to a rent payment in a similar apartment, BEFORE interest payments. Yes, interest is tax deductible, but people act like they actually come out ahead on interest, when it's still a big net outflow.

My friend is probably 95% of the way to a rent payment just in all those extra fees (including interest payments). Amortize transaction fees (often 6%), given to the real estate sales people-leeches, and you are paying the equivalent of a full "rent" payment each month even when you own.

 

[Clubber Lang]

Quote from wilburbear:

Amortize transaction fees (often 6%), given to the real estate sales people-leeches

Realtors are done. Now that the internet has given buyers/sellers all the same information, realtors days are numbered.

I bought a house a few months ago that was a FSBO (For Sale By Owner). My realtor was supposed to make 2.5% from the seller.

I negotiated with her to kick back 1% cash to me at closing.

In the end, total realtor compensation was 1.5% of cost.

The days of 5-6% realtor robbery are over.

 

[wilburbear]

Quote from Clubber Lang:

Realtors are done. Now that the internet has given buyers/sellers all the same information, realtors days are numbered.

I bought a house a few months ago that was a FSBO (For Sale By Owner). My realtor was supposed to make 2.5% from the seller.

I negotiated with her to kick back 1% cash to me at closing.

In the end, total realtor compensation was 1.5% of cost.

The days of 5-6% realtor robbery are over.

This will be helpful if realtor robbery does come to an end.

One more thing about Chicago. No Olympics, no Oprah, and the town is full of ex-pit-traders when all the business is going to the screen and algorithms. Get a fantastic deal as a buyer, or walk away!

 

[377OHMS]

Quote from Clubber Lang:

Realtors are done. Now that the internet has given buyers/sellers all the same information, realtors days are numbered.

I bought a house a few months ago that was a FSBO (For Sale By Owner). My realtor was supposed to make 2.5% from the seller.

I negotiated with her to kick back 1% cash to me at closing.

In the end, total realtor compensation was 1.5% of cost.

The days of 5-6% realtor robbery are over.

Absolutely true. People are negotiating or getting the referral through a friend in the same firm who kicks back half the commission. Nobody is paying full pop, at least not around here.

I also agree about the internet. Finding a home online is actually pretty fun because of how many listings you can view that have decent photography. You can find some quirky places that you would definitely not see going to a firm or a single agent.

An example: Years ago I was flight training in s.cal and kept seeing this home on a rocky hilltop with a helipad and a crazy-long driveway. I remember circling the place and muttering "what the hell is THAT?" and thinking I would love it up there. Almost 10 years later I found myself sitting in Chicago and looking for a home in s.cal and I open up realtor.com and just for fun type in "helipad" for my first search and boom up pops the house, the very house, the same friggin house! I've been living here now for over 3 years. The helipad is now a deck.

If I were renting and had adequate income and a long-term outlook I would buy something before the rates go completely Jimmy Carter (and while there is still a bank around that can lend money). I can see, however, where many would be concerned about future value. Its certainly a bet, a bet you can live in. I can't condemn anyone for calling it gambling.

 

[Clubber Lang]

Quote from 377OHMS:

An example: Years ago I was flight training in s.cal and kept seeing this home on a rocky hilltop with a helipad and a crazy-long driveway. I remember circling the place and muttering "what the hell is THAT?" and thinking I would love it up there. Almost 10 years later I found myself sitting in Chicago and looking for a home in s.cal and I open up realtor.com and just for fun type in "helipad" for my first search and boom up pops the house, the very house, the same friggin house! I've been living here now for over 3 years. The helipad is now a deck.

LOL. Great story 377OHMS!!

Congrats on the house. Hope you enjoy every minute of it.