UnThreaded | Threaded | Whole Thread (58) | Ignore Thread Prev | Next
Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757316  
Subject: Re: rent vs. own? Date: 10/18/1999 2:37 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I'm not convinced that you can't own your own home and still retire early nor am I convinced that you could afford more during retirement if you rented. I think an awful lot depends on each individual's circumstances and that we can't just use a broad brush to say which is 'best' for anyone. I look at my parents. They bought their house back in the early 1950's as new construction, paid the mortgage, and now own it free and clear. They have been retired since 1981, and have gone back and forth from their house up north to one in Florida since then. It costs them taxes and insurance for both houses and together they only cost around $500 a month for all costs except utilities, but those are generally separate even if you rent. If they had rented all these years instead, they would not be able to afford their retirement lifestyle because rents are more than that in either place let alone if they had to pay in both places at the same time to ensure they had somewhere to live. Now, I grant that they never did any investing so only live on their pension but that is because they are children of the Depression and neither of them trust the market. Imagine what they could do, though, if they had invested.

I also think that the basic assumption on this thread is that your dream house has to cost some exorbitant amount of money with an associated exorbitant debt. That's a choice that people make, but it doesn't have to be the only one. We just moved into our dream house which cost almost twice the one we sold and moved out of. But we have been saving for this house for a while and used the equity from the old house as well as from a piece of rental property so that our total monthly payments are still around 20% of our gross. So even having our dream house and being able to put the kids through college, we still expect to be able to retire in our early 50's. That's not as early as most of the folks who are already retired on this board, but it's early enough for us. And if we keep saving at the rate we are, we should be able to bring that in by a couple of years if we like.

I guess the point of all this rambling is that no one solution is 'best' but that you need to look at all the alternatives available to you and see how they are affected by your particular circumstances. The only answer you need is the one that's right for you. It doesn't matter much if it's not right for someone else.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (58) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement