^^^I'm in agreement with this. Buying a house just because everyone else says it's a good investment, you don't want to pay someone else's mortgage, houses will only get more expensive, yada yada yada, is indeed silly. I have a coworker who's married and has a son. They just bought a 1300 sf fixer upper for a little over $600k. Both he and his wife make roughly $160k combined income and guess what... they're not struggling financially but they're definitely not making a living. They rarely go out, take trips, or even spend frivolously because they now have a mortgage AND need to fix the house. Their son unfortunately will have to go to a public school which is super unfortunate because our public school system is terrible at best. Was it a good idea for them to purchase a house and be house poor for the next 30 years? Maybe, in their eyes. For me, I'd think otherwise. I mean do you really want to spend the next 30 years of your life living like that?

Point I'm trying to say is play your cards right. Either bring your dreams in line with your reality or elevate yourself to live the life you want. If you choose the latter, be prepared to live with the parents or shack with roommates until you get where you're going.

 

How are you supposed to pay rent when you're retired if you don't have a home payed for? That's what I'd worry about.

 

Homeownership for the average family is a relatively recent phenomenon. If you look at historical homeownership rates, it's hovered around 65% for the last 60 years. Sooo, 35% of this country has been doing alright for some time. I'd be more worried about (1) being able to retire at all; and (2) when. With life expectancy on the rise for my generation, the issue of when seems a lot more important than where/in what, though I'm not discounting the importance of the latter. I just don't think it's as important as people think. Chances are I could buy something at fifty, and pay it off by the time I retire at 80. I'm really not worried about it, but understand why some people are. Alternatively, I could just pay rent for the rest of my life. Plenty of people do. It's just something you plan for, like anything else.

 

Well in the last few years mortgage rates have been as low as they will likely ever be in our lifetime. That window is closing and interest rates are climbing. I totally understand that in some markets, owning is expensive. But real estate (especially in those markets) is an investment. Is it the best investment? Not always. But it is definitely better than leaving your money in a savings account. The stock market has not exactly been stellar. So how are you making your money "work" for you?

 

Not buying a house at an overly inflated price? Not buying a house because of hyperbolic claims about "lowest rates ever?" On average they were lower in 2012, hope you bought then!

Right now, dumping my money into an appropriately aggressive mutual fund until I need it, and otherwise enjoying life. Traveling, saving, experiencing. I flew to Mexico City this last year by myself for six nights just to see my favorite band. Wouldn't have done that with a mortgage, and wouldn't trade any of those experiences for a million dollar 1 bedroom condo. But hey, everyone's different. I don't tell people what to do, I just encourage critical thinking. If your house makes you happy then

Would love to revisit this conversation in 30 years. Until then, that's about the extent I'm going to discuss my personal finances on a public forum. Happy to put you in touch with a financial advisor if your money isn't all tied up in a mortgage. I'm kidding about the last part. Sounds like you're happy with your decision. I'd never knock someone for that.

 

I was looking at house plans on youtube (well, actually, mansion plans - what can't you find on youtube). In front of each of these castles they had placed a high end car, BMW, Mercedes or the like. In front of a very fancy house was parked a Yellow Evo with the big Evo 8 wing. So, what is the message here?

 

You are going to hate to hear that I leased a 2014 Evo 10 with SSL package for less than that a month and same dp.

 

They had stupid lease deals on the 2014's. I almost got one until the 8 that I currently own popped up...lol

 

Good points here, but remember that from ages ~45-retirement is crucial time to be maxing out 401k/IRA contributions, not aggressively trying to pay down a mortgage which then takes away from your retirement contributions/savings. Not to mention, most people don't plan for their retirement to be spent in the house they've lived in for the last 30+ years of their life, so while all of your colleagues are hosting retirement parties, selling their houses to downsize and/or buy a condo near the beach, you're going to be stuck with a house you still owe money, a retirement account that won't last more than 10 years, and a job you'll never comfortably be able to retire from.

My grandparents are a perfect example of this, and it is quite sad actually. Hell, my grandma is 87 and still working nearly 30 hours a week at a local arts & crafts store to support their lifestyle. My grandfather sits in the house, plays cards and watches TV. He can't even enjoy the little things anymore, like yard work/house and car maintenance, but he's still stuck spending nearly every single day alone, in a house, while my grandma is working. Strive for a better retirement than this. Maybe this was their idea of retirement, and I know they traveled in their earlier years of retirement, but I will tell you that your retirement should be some of the most enjoyable years of your life.

My $0.02 is that if you feel like you will have enough money in your retirement account to retire at age 40, then by all means rent until your 40 and buy a house then, but otherwise you're going to shift your financial focus at a crucial time in your life.

I forget about those that are in the NYC/SF/LA/MIA/etc cities that cost absurd amounts of money to live in. Here, a 2,500 sq/ft home in a suburb goes for anywhere in the $200-$350k range depending on location and how recently it was built.

I can buy a decent house downtown, built around the 1920s-1950s, for around $100k, mortgage payment would be less than it would be to rent a studio downtown, and if I ever chose to move out I could use it as a rental property and basically own a home for free (besides the months that the house is vacant, etc.)

 

Here's an example. Heard of Elon Musk? When Tesla was in its startup phase, he had to use the last of his earnings from selling Paypal to keep Tesla afloat. He had to borrow money from friends and family to pay rent. Wait what??!! A multi-millionaire who was renting instead of paying a mortgage?? Lol. There's more than one way to play the game of life. Owning a house is not and should not be a priority for those with greater plans in life.

 

That is the worst financial advice I have ever heard. Good luck following the Elon Musk path to financial freedom

 

Thanks! I think we've gone here. I'll digress now. No sense trying to rationalize with those who have "different" goals and plans. Good luck OP.

 

I moved a little bit away from the city and bought me a house for cheap. (cheap for NJ at least) I have to commute an hour to work. Big deal. Driving an evo there and back is fun! I could rent a condo/townhouse close to work, but finding one with my square footage and a 2.5 car garage is scarce and would cost more than my monthly mortgage/tax payment.

Here's a tip, don't live near big cities unless you have a big paying job. Its easy. I don't ever see myself paying to live near a city. Who wants to pay 600k for 1100 square feet and a 20x20 yard? Ridiculous.

Honestly, people who complain about money shouldn't be on an Evo board. Go buy a used corolla that will get you from point A to B and not cost a damn thing. I sold all my goodies to buy a house. Now, I'm back. I own my belongings, they don't own me. At least when I go to sell my house, I'll get most of it back vs losing it all as rent. :shrugs:

 

 

the only thing I don't like about the image my evo gives is that the clearcoat is peeling off all over the car and it looks like an 80's car. damn you Mitsubishi clearcoat.