Is buying a house really the way to go ?

I'm single no kids. I live in university place Washington ( Seattle )

It seems like everyone at work and elsewhere keeps shoving the "why do you rent, you are wasting money" line down my throat like it's a clear right choice. Like being a drug addict vs. being clean.

The reason I never bought is the numbers don't look right to me ( also I like to gamble ). But as a single person, it doesn't seem like a good choice to me.

I have a 1 bedroom townhouse and pay $1200 a month plus electricity call it $1300 a month.

If I bought a similar home, with my ~ 675-700 credit and say $10,000 down, I'm paying at least $1700 a month mortgage+utilities+ insurance+repairs+upgrades+whatever else comes up.

Plus now it's a lot harder to just move if you take a better job, have a life change, or just decide to move to Tijuana. 

How is that smart ? 

They say at that way you will own it. So you are going to live in it until you die, or at some point sell it and use the proceeds to buy another house. I don't really see the benefit of owning it since you aren't selling it until you die. But over 30 years it's going to cost you at least $1000 a month extra so that's an extra $360,000 which if you just invest the $1000 a month would probably be $1.5 million in 30 years. 

Am I wrong here ? 

Danny, I did not know that you lived there in University Place/Fircrest...I lived up there from 1985 until 1998 (was stationed at Ft Lewis for a few years) lived in and aroudn Seattle for the remainder of the time and remember when housing was affordable there before all the people from California migrated north and blew up the cost of housing.

You are doing the right thing in being a renter, the key is if you have a competent and caring landlord. If something happens with the townhouse it's on him to correct plus as in all the things, you mention...mortgage+utilities+ insurance+repairs+upgrades+whatever else comes up. Your ONLY outlay is for rent and renters' insurance... (if you don't have it, I suggest you look into it.) and utilities. 

These athletes that buy these HUGE mansions.... it's a FOOL'S MOVE.  You buy a house for MILLIONS of dollars and then get stuck with these HUGE property tax bills...being a renter is where it's at...you are free to move anytime and are not stuck with the problem of selling the house once you either want to sell or outgrow it.

Just some thoughts, hope this helps? 

Dude are you seriously asking this? Of course buying a home is the way to go. Instead of wasting it on rent you are building equity. Its like putting money in a savings account instead of torching it. Its a no-brainer.

Build a kite and fly to Mars .
Where there’s a will there’s a way cuz times are hard .
You might like the view , and your new surroundings ,
or you might tighten like a noose , in the vacuum , I’m clowning  ,
astounding truths and outstanding changes ,
the landscape’s got pavement ,
it’s man made ,
as nature wastes away ,
hey our foundation’s breakin’ 
and Maybe life is simple ,
Or should I dare say it’s plain 
as we create fake hate for our neighbors to make our own pain dissipate 
It’s little brains and giant evils
And you’re fucked like a vagina yes your hymen leaves you
Cuz it’s cherry popped
and then put it on top
as you look for a spot to put your foot up and crookedly watch
the Earth spin right off its axis
with the dirt from the surface turnin’ to a mist hurtin’ yer vision and burnin’ yer larynx
for certain there’s taxes
and we’re made to pay
it’s weird and insane behavior it’s crazed……


happy home hunting…….

It's really not a no brainer. It's a serious question.

I am always stunned by the "wasting money on rent " argument because people never finish the sentence. When you buy a house, you also have to "waste money on interest" among other things. Typical 30 year mortgage, your first years payment, those 12 payments are like 90% interest and only 10% principle. But everyone ignores the approximate $275,000 in Interest you will pay on a $250,000 home, $15,000 down, 6% , 30 years. And 6% is considered a pretty good rate. You pay about $800 a month in interest over those 30 years. That's wasted. 

Not to mention Insurance, repairs, utilities, etc that you have to pay. 

I think banks and real estate brokers have brainwashed people into just assuming buying a house is a "no brainer" instead of people actually looking at the numbers

Yeah and if you have a shitty landlord, you can always just move. I don't have renters insurance but with rent + electric it's $1300 actually a little less. I know people buying the same thing I rent, they pay probably $2500 a month all together, most struggling through life, to buy their home. You are just going to live in it until you die, you aren't personally getting any of that money back. I'm old enough, I doubt I have 30 years left so I would never have it paid off anyway. 

I went down to Tijuana. I met a girl named Arianna. A perfect 10 was she. A wonderful day this was gonna be. We drank, ate and talked while we sat in our spaces. I noticed she had the cutest little braces. We had burritos and apple pies. At some point I felt my p*** rise. Embarrassed a bit, I still hoped she noticed it's impressive size. She did, her smile gave it away. It was getting late, but oh I wanted to stay. I wasn't sure if I had a chance, but then she offered me a little dance. $30 down the drain but there was so much left to gain. Upstairs we went and I was a perfect gent. Another $80 to her. And it wasn't just lent. We had fun and then away I was sent. 

There is a trillion dollar American industry built on home ownership - and the myth of home ownership as an investment.

The total cost of ownership, as an investment - over history has not faired well against traditional investments.

Renting is actually a smarter financial chioce.

Fillin’ tacos with American beef ,
As I sling my meat to this sweet lil’ mama in the city of Tijuana cherishing scenes…
I’m Slipping it in her bottom and to her Tia Juana it’s not a problem the pair on my jeans ,
Both daring to dream ,
As the smoke floats in the air , from the prayers of the leaf
and falls to the rug
as I’m ripping things and thongs off , dogg , it’s all in good fun
You can call me the king kong long dong marauder of cumm ,
cuz when my balls spurt liquid raw , imma work to finish strong , and donkey the punch ,
it’s wrong , and against the law , but it’s all done for love ,
As Limbs intermingle and sauces combust
then bring in the daughter , cuz shawty’s a plus 
And it’ll be three streetwalkers , All of ‘em naughty freaks , caught in heat , and slaughtered from pumps
by my Stars and Stripes ,
and hard pipe , 
life’s to be lived bitch and I started tonight ,
on a journey
that left one in a gurney ,
murmuring incoherently ,
and mind you I speak Spanish ,
but with the time that I spent bangin’
and the damage that I left hangin’ ,
in them stank canals , hey pal , I couldn’t tell the language ,
and that’s the way it went ,
my three day vacation/event ,
the sex was the greatest , the most amazing , the best ,
but who can remember ?
how it ended ?
cuz confusion abounded as heard a few sounds , none of ‘em Mexican 
So I woke up , From a deep mind dream
And found by my side just some refried beans ….

Moral of the story : I Ate Taco Bell and Fell Asleep

I'll put my 2 cents in:  I'm a home inspector and I deal with first time home buyers all the time.  They love the idea of home ownership, but a lot of them haven't really sat down and figured out how much it's going to cost.  Let's say they are moving from a 1100 square foot apartment into a 2000 square foot home that was built 12 years ago.  First up, unless they have 20% to put down, they are paying PMI, which can be $50/month or more.  Then they don't consider how much it's going to cost them to furnish that extra 900 square feet - maybe another bedroom suite and a couch or whatever.  Sure, they don't have to furnish it, but most will.  Then you start looking at the major systems of the house - the roof will need to be replaced in the next 10 years.  So will the HVAC system, water heater, fridge, stove, washer and dryer.  In this case, they can easily spend $40-50k over that 10 years, and even more if they have bigger plumbing or electrical problems.  Then you look at maintenance costs - are you buying all the lawn equipment you need, or are you gonna pay someone $100/month to do that for you?  Your power bills are gonna go up because it costs more to heat and cool that extra 900 square feet.  And on top of all that, if you need to move because of a job or whatever, you're gonna pay thousands of dollars to sell your house, and hope the timing is right and that it's a sellers market.  Not to mention everything that goes wrong in that house is your problem - frozen pipes, leaky fixtures, cracked bathtub, broken oven, AC crapped out, leaky roof, termites, etc...  And don't forget paying a pest control guy a couple of times a year, depending on the area you live in.

With all of this being said, I bought my house 22 years ago.  Right now, its worth about 3 times what I paid for it.  During that 22 years, I've replaced the HVAC system, water heater, roof, fridge, washer and dryer, stove/oven, pumped the septic tank 6 times, remodeled a bathroom and kitchen, replaced a large deck out back and added a front porch, and spent about $8k on plumbing and electrical repairs, gone through 2 riding mowers, 2 weed whackers and a couple of blowers. My main saving grace was the acres of land that came with the house.  I've turned that land into profitable ventures - I have a nut and fruit orchard and a large garden.  I've sold some timber, I sell a few thousand dollars worth of firewood a year and I lease an outbuilding to a guy who has a welding business.    IMO, if you want to buy a house, plan on staying there for at least 10 years and get something with a little bit of land that you can use to generate income.  Otherwise, you're probably better off renting.

First off - you mention "the reason you never bought a home is because the numbers don't look right to you and because YOU LIKE TO GAMBLE" so I hope you're not gambling your down payment because you'll never own a home.

Home ownership has been and always will be one of the greatest investment platforms to be on.

Also, you may be paying a 6% interest rate as mentioned above but you are paying 100% on rent as you have nothing to show for it as well as

you're 6% interest rate is a fixed rate as the payment won't change whereas rent going up every year puts you basically on an adjustable payment.

Your building equity which to me is like forced savings.

But it's all personal preference, your age, your lifestyle, your income, your habits - LIKE GAMBLING will all play a part if homeownership is a right fit for you.

Seattle is one of, if not the hottest markets in the country, so you would be acquiring an appreciating asset in your specific location.

Chances are high that you could buy something and then decide to dump it within 5 to 10 years, and walk away with a handsome profit.

Real estate may be a money pit if you live in Ohio or Pennsylvania or somewhere along those lines, but Seattle’s market is a money maker.

There's a lot of variables that go into it. The location you live the amount of money you can put down the interest rate you get. But ultimately you're better of renting as long as you have a good landlord who will fix any problems when asked and the big one being that whatever money you save every month from renting that money needs to go into an investment account making you between 6-10% a private mic is always a good choice. I live in Vancouver where the real estate market is insane. I see people buying 1 million dollar 600sf shoe box condos and laugh. The first 2-3 years they're not even paying any of the principal off only interest plus they have to pay strata fees and all the property taxes. My cousin just bought a condo at a variable rate no less so as our interest rates have climbed because of inflation so to has his monthly payments they've gone up by like $800-$1000 a month. I just shake my head lol. Keep renting the key is to invest the money you save every month and at the end of 25 30 yrs you'll actually be ahead of any home buyers.

https://smartasset.com/mortgage/rent-vs-buy#TOwKpPvyLu

There are a lot of things online to help you with this.  This is just one that you can plug in variables and play around with.  I put in your location and rent and some basic information along with the standard defaults.  It looks like about 6 years would be the breakeven time.

For long term financial success you should always have a paid for place to live.  The earlier in life you do that the sooner you can make your extra money from not having a mortgage or rent payment work for you.

Pretty much if you are going to stay in the house for 5-8 years you are better off buying.

A house should not really be looked at as an investment because you have to live somewhere -- you are NOT in the real estate business and trying to flip houses.  If it turns out that you are in an exceptional market and you decide to sell because it has over-appreciated, then that is just gravy.

But you have to be prepared to buy a house.  Make sure you have the best credit rating you can get, in order to get the best interest rate possible.  Have the most down payment ready that you can.  The downpayment should be at least 20% to avoid the extra charge of PMI.  Try to afford a 30-year loan and get a 15-year loan.  If not, pay extra payments in order to pay it off way early.  You want to be rent/mortgage-free as early as possible in life.  This frees up more of your income as you get into your prime earning years.  

Do not overbuy on a house.  Too many people will under-rent, or at least rent according to their income.  But when they go to buy a house they will overbuy.  They will almost automatically buy the most house that they can get approved for.  This is completely bad logic if you are planning for financial success long term.

If your mortgage will be way more than your rent -- you are very likely buying too much house.

If you are in an area where you are 'lucky or fortunate' to have great rent and in an area where houses are 'over-priced' -- you really should consider moving.  Or at least commuting into town a bit.

If you are just liking the 'convenience or laziness' that comes with renting -- you should really, really consider how this affects you financially long term.

Already people do not plan well enough to get old and retire.  Having a rent/mortgage going into retirement is detrimental to a person's finances.

You do not want that much of your income always going to this much of a bill every single month for your entire life!

There may be people that are very successful financially that are long term renters.  But it should be pointed out that an overwhelming amount of successful folks -- and I mean an overwhelming amount of them -- have a paid for house!  Most do it way earlier in life than others.

Research this and think about it.  Play around with some of these calculators online.  Talk to people that are successful that you know and trust.  

Think about what you can do with that amount of extra money a month -- or, more specifically, what that amount of money can do for you long term!

Once you are a millionaire -- because with a decent job, income, solid investing and a paid for house, you will be -- then you can decide that you have plenty of disposable income for the rest of your life.  Then you can decide to rent just for the sake of convenience.  But I almost guarantee your mindset will change by then.

I say buy a reasonably priced house soon and work towards getting it paid off!  Good luck! 

Totally depends on your situation

Yes, it depends on your situation.  In that you need to be prepared to buy a house; if you are not prepared, then get prepared.

By and large, everyone is better off not keeping a monthly rent/mortgage payment their entire life.

Idk about you, but where I live in Cali we sold our home for 43% more than we paid 5 years prior. Is 43% ROI good for you? If not, you’re unrealistic. If yes, then what are you doing renting? 

I get it. Buying is scary. So buy a recently flipped place if you have the dough. Then sell that and buy your permanent home. 

It’s a buyer’s market right now too. Worth a look if you have the capital