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Author: ptsurmr Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127815  
Subject: Re: Re: Buying a home makes sense??? Date: 6/19/2000 12:49 AM
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zay34kc3 writes:

Then finally when it's time to retire, the buyer has his housing paid for (except for taxes and maintainence) the renter still has to write a check every month.

this, for me, is one of the biggest advantages of buying. yes, you can do an analysis and show you would have X more dollars at retirement if you rented and thus could retire earlier or live in a better place, etc.


But this is my point. If you can live one place that gives you similar "satisfaction" as another, and save money, why not? What you do with the saved money is up to you. For me, money is nothing more than a measure of life-energy. By saving money, I save life-energy. This saved life-energy is more valuable than I can express. Money I spend on "shelter" represents a large portion of my life-energy. Large enough that I spend a bit of life-energy figuring out how to optimize this expense.

having a house paid off buys enormous security. since my retirement planning assumes 100% of my pre-retirement income while in retirement, all that mortgage money can now go to health care, travelling, beer, etc. i'm also shielded (partially) from the volatility in the equities market. even if my investments really tank, i can at least earn enough to pay utilities and taxes. also, i could care less about my home's value. i plan on having some land around me to rule out bad neighbors.

For many this way of purchasing "enormous security" comes at a high price. If one is incapable of setting and sticking to a simple budget and savings plan, then buying a home will yield security. I think there are less expensive ways of purchasing the same, or better, security. Yes, by "owning" your home you will need less money to pay your monthly expenses, but you will have less money to do so. In my case, renting a "shelter" that provides me with equivalent "satisfaction" as one I could buy leaves me with a great deal more money in retirement (even assuming extremely modest real asset appreciation). This additional wealth more than offsets the additional expenses I will incur.

yes, i have to worry about property taxes, but, hey, i can be a "cranky senior citizen who votes." i can't vote to make GM's stock go up 10%.

LOL. Good luck with getting your vote to change any tax situation. I am disgusted with our current tax system (but that is a topic I have discussed on other boards). All the voting I have ever done has not changed one tax (I do continue to try). One point about your comparison to voting for stock, 'Tis true, it is unlikely that your vote will not make any stock go up. But, you can choose to sell the offending stock and buy another. In other words, if GM doesn't do it for you, choose Ford (for example). Try and do something similar with taxes! The analogous situation has you moving out of the city/state/country imposing the offending tax!

of course, this is not to say that buying is for everyone. i know some people who like to move around a lot, and obviously, renting is better for them.

True, renting is better for those who move around a lot. But the point that I am trying to make is that renting is better for far more folks than just this group.

PtSurMr
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