By What Age Should Someone Own/Have Bought a House?

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Lanolin

Lanolin

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#81
The Bible says...count the cost

Jesus never owned a home.
When the Israelites built God a house, it was all nice for the first few years but then terrible things happened when they couldnt afford to maintain it.

Taxes also went sky high and the nation suffered. God was actually happier in a tent where He could move around with His people. Paul was a tentmaker and lived in a hired house.

Landlords can be cruel taskmasters. The Bible also says forgive people their debts. A mortgage is a lifetime debt, thats why its called a mortgage.

Make friends with the unrighteous mammon and they will let you into their everlasting habitationss. if you are lucky enough to inherit then do but then dont sell off what you have thats just shortsighted and dumb. Your permananet home is meant to be not just for yourself but for future generations should you choose to GIVE it to them. Its not just a nursery for raising children...more importantly, its not even the house or building but more the LAND.
 
Lanolin

Lanolin

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In places like NYC where land is at a premium everyone lives in an apartment 40 storeys high but they have parks and a public transport system ...very crowded and polluted though but people dont care as long as they can make money. The rents have to be controlled otherwise ppl couldnt afford to live there.

Suburbs are designed for houses and cars and you have to create your own garden. But your job needs to pay well enough to afford this lifestyle. You may never get a vacation. It can be good for children in the richer areas where their land plots and homes are bigger and they have an army of tradespeople willing to offer their services to help but in lower income areas where you need to do everything yourself the homes deteriorate because nobody has the time and money to maintain them. They then get bought up by richer people and the poor people get priced out (gentrification) though some richer people start acting as landlords cos they think they can make money out of it (land banking, speculation) and drive up prices. Why own one house when you can own ten, rent them out and make money from them. or flip them?

People are silly about houses. then surprised whn like Monopoly, everyone else goes bankrupt when the money runs out.
 
tourist

tourist

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Mar 13, 2014
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#83
melita916 said:
Hubby and I lived in an apartment when we got married. Our goal was to get a house, but it was challenging for us to find something here within our budget, and for some reason, we didn’t want to live in a manufactured home. Guess where we live now? Lol We would probably still be in an apartment if we didn’t need more space ❤️.
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I bet that it is a cozy happy home with you, hubby and baby. I believe that you have a wedding anniversary approaching too on April 22. Yours is a classic CC love story for sure. :)
 
Lanolin

Lanolin

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A lot of of homes are actually sitting empty because rich people just buy them for fun and investment.
And when peoole dont actually live in them and look after them, homes quickly deteriorate and become unlivable.

the other thing is 'broken homes' are also messed up, when people divorce, someone has to move out and find somewhere else to live. They cant stay on the same property let alone share the same bedroom. And that costs.
 
Lanolin

Lanolin

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Children grow up too and homes get crowded but not everyone will move out of home if they have got nowhere to move to. Babies are small it they will grow bigger and need their own space, sharing is often fraught. This is why people just add on extra rooms to a small house.

A three generational home use to be he norm but people seem to to only want nuclear family type homes that arent sustainable.
 
A

arthurfleminger

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A lot of homeowners are thrilled that the value of their house has soared, but this is smoke and mirrors. Let's say you bought a house for $100k and ten years later it's worht $1million. This kind of data makes the home owner feel that they've made a great investment. But that's not so.

I have experienced a great increase in the value of my condo/residence over the last 14 years. But you know what? Whether this residence is worth $100k or $1million, I'm still living in the same place no matter the price.

You say sell and take the profits? I can't really. If I sold I'd have to move somewhere else and all the other houses have appreciated in value too. I'd have to pay all the money I received for selling my place for a new house. Also, there'd be a lot of expenses related to the sale.

In fact, the only two who'd profit from the rise in the value of my residence are the tax man who raises the real estate taxes according to the house's value and my heirs.

So, the rise in the value of one's residence isn't necessarily an advantage to home ownership.
 
cv5

cv5

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Nov 20, 2018
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arthurfleminger said:
A lot of homeowners are thrilled that the value of their house has soared, but this is smoke and mirrors. Let's say you bought a house for $100k and ten years later it's worht $1million. This kind of data makes the home owner feel that they've made a great investment. But that's not so.

I have experienced a great increase in the value of my condo/residence over the last 14 years. But you know what? Whether this residence is worth $100k or $1million, I'm still living in the same place no matter the price.

You say sell and take the profits? I can't really. If I sold I'd have to move somewhere else and all the other houses have appreciated in value too. I'd have to pay all the money I received for selling my place for a new house. Also, there'd be a lot of expenses related to the sale.

In fact, the only two who'd profit from the rise in the value of my residence are the tax man who raises the real estate taxes according to the house's value and my heirs.

So, the rise in the value of one's residence isn't necessarily an advantage to home ownership.
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Yep. Limited options. You can use the property as an ATM if there is enough equity. Was a useful option when intrest rates were rock bottom. Not such a good idea anymore tho.
 
seoulsearch

seoulsearch

OutWrite Trouble
#88
May 23, 2009
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arthurfleminger said:
A lot of homeowners are thrilled that the value of their house has soared, but this is smoke and mirrors. Let's say you bought a house for $100k and ten years later it's worht $1million. This kind of data makes the home owner feel that they've made a great investment. But that's not so.

I have experienced a great increase in the value of my condo/residence over the last 14 years. But you know what? Whether this residence is worth $100k or $1million, I'm still living in the same place no matter the price.

You say sell and take the profits? I can't really. If I sold I'd have to move somewhere else and all the other houses have appreciated in value too. I'd have to pay all the money I received for selling my place for a new house. Also, there'd be a lot of expenses related to the sale.

In fact, the only two who'd profit from the rise in the value of my residence are the tax man who raises the real estate taxes according to the house's value and my heirs.

So, the rise in the value of one's residence isn't necessarily an advantage to home ownership.
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YES!

I mentioned this in a previous post:

seoulsearch said:
Another factor I am always amazed to see neglected in the "Why It's So Much Better to Own A Home" is that no one ever seems to mention that when you sell your home, if you don't have another place on standby, you are going to need a new place to live! Unless one plans on conveniently clocking out and going to heaven right after the sale...

This means you will have to either find another home that's as affordable or less than what you are living in now, as well as pay a whole new set of closing and moving costs. Not many homes are turn-key, so that would also most likely mean a healthy dose of additional money needed for repairs and updates.

I can understand if perhaps a couple has owned their home their entire lives, raised a family, and then downgrades into a smaller place (but even then -- in my area, you can't find houses that aren't built for couples -- everything is built for families -- one of my relatives called about a new area that doesn't have anything less than 2200 square feet,) so they may very well find themselves renting anyway.

And for those who aren't looking into moving into a smaller place, unless they can really make a killer profit on their home sale and find a less expensive way to live, I agree with you, Ms. Mediator.

It might just be me, but in these kinds of situations, there doesn't seem to be like there's generally much incentive to own -- especially when someone might not be able to buy for the first time until they're say, 45.

Does being 45 with a 30-year mortgage (stretching out until age 75) really sound ideal?

I'm not saying it can't work; I'm just saying that for myself and my own circumstances, this probably isn't what I would chose.
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I'm always bamboozled by the fact that when people talk about how much a house appreciates, no one mentions the crucial point that the only way they can capitalize on that is to sell the house.

And that means, they need somewhere else to live!!! (Unless they're planning on passing on to heaven and letting an heir, etc. sell their place and pocket the money.)

I always hear people talk about appreciating house value as if they can just sell, take the money, and run, but as you pointed out, it all hinges on whether or not someone can find a less expensive place to live.

Unless the sale of their house is going to cover the down payment, closing costs, repairs and updates, and the cost to move/relocate -- selling doesn't seem like it will put them any further ahead and will actually cause them to lose money in the long run.
 
MsMediator

MsMediator

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arthurfleminger said:
A lot of homeowners are thrilled that the value of their house has soared, but this is smoke and mirrors. Let's say you bought a house for $100k and ten years later it's worht $1million. This kind of data makes the home owner feel that they've made a great investment. But that's not so.

I have experienced a great increase in the value of my condo/residence over the last 14 years. But you know what? Whether this residence is worth $100k or $1million, I'm still living in the same place no matter the price.

You say sell and take the profits? I can't really. If I sold I'd have to move somewhere else and all the other houses have appreciated in value too. I'd have to pay all the money I received for selling my place for a new house. Also, there'd be a lot of expenses related to the sale.

In fact, the only two who'd profit from the rise in the value of my residence are the tax man who raises the real estate taxes according to the house's value and my heirs.

So, the rise in the value of one's residence isn't necessarily an advantage to home ownership.
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I think that is why people move to cheaper states, like from California and East East places to cheaper states to afford a larger home. But it will be harder to increase space if you stay in the same area unless you move farther out. If your home appreciates that much it is probably a good investment compared to other investment vehicles, so there's that, if you come out ahead after all the costs.
 
1

17Bees

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Oct 14, 2016
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Just don't buy a house in your twenties. Twenty year old's are carefree, fun and nobody really looks to a twenty year old to make good decisions. You know why? Because they suck at it. You dated that guy that dropped out of high school who wanted to be a computer game programmer because he was good at it? These are bad decisions. You're thin when you're in your twenties. You can't trust a thin gut. Wait till you're in your thirties. You still have time to trash it.
 
A

arthurfleminger

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Aug 18, 2021
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seoulsearch said:
YES!

I mentioned this in a previous post:



I'm always bamboozled by the fact that when people talk about how much a house appreciates, no one mentions the crucial point that the only way they can capitalize on that is to sell the house.

And that means, they need somewhere else to live!!! (Unless they're planning on passing on to heaven and letting an heir, etc. sell their place and pocket the money.)

I always hear people talk about appreciating house value as if they can just sell, take the money, and run, but as you pointed out, it all hinges on whether or not someone can find a less expensive place to live.

Unless the sale of their house is going to cover the down payment, closing costs, repairs and updates, and the cost to move/relocate -- selling doesn't seem like it will put them any further ahead and will actually cause them to lose money in the long run.
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Seoulsearch, you mentioned some expenses in selling a house, "Down payment, closing costs, repairs and updates, and the cost to move/relocate -- selling doesn't seem like it will put them any further ahead and will actually cause them to lose money in the long run."

You left out a major expense in selling a house, that's 'Capital Gains Taxes'. That's correct, for houses that have soared in price, expect a hefty capital gains tax on it, when you sell it.

The US Federal government currently has a capital gains tax exclusion for houses that are sold. That exclusion is $250k for single filers and $500k for joint filers. That means if you're single and sell a home and make less than $250k profit, then you own no capital gains taxes, same for a $500k gain for joint filers.

But, if you profit more than that you will be taxed. Let's take the example, I'm single and bought my home for $100k and sold it for $1million. My cost basis is $100k, my exclusion is $250k. So, $350k is non taxable. However, there is $650k that is taxable at a capital gains rate of 15% or $97k due in taxes. (Note also that your total AGI will soar with the sale and that you will also jump into a higher tax bracket for all your income)

My Sister and husband ran into that problem last year. They wanted to sell their house, paid $50k forty years ago and it lists for over $1million in today's market. They decided not to sell because of the high taxes they'd have to pay.

And note that, if the house you're selling is not your primary residence, then all your profits are taxable. It's important to know the tax laws. Read further:

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic No. 409 covers general capital gain and loss information.

Topic No. 701 Sale of Your Home | Internal Revenue Service (irs.gov)
 
seoulsearch

seoulsearch

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May 23, 2009
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arthurfleminger said:
Seoulsearch, you mentioned some expenses in selling a house, "Down payment, closing costs, repairs and updates, and the cost to move/relocate -- selling doesn't seem like it will put them any further ahead and will actually cause them to lose money in the long run."

You left out a major expense in selling a house, that's 'Capital Gains Taxes'. That's correct, for houses that have soared in price, expect a hefty capital gains tax on it, when you sell it.

The US Federal government currently has a capital gains tax exclusion for houses that are sold. That exclusion is $250k for single filers and $500k for joint filers. That means if you're single and sell a home and make less than $250k profit, then you own no capital gains taxes, same for a $500k gain for joint filers.

But, if you profit more than that you will be taxed. Let's take the example, I'm single and bought my home for $100k and sold it for $1million. My cost basis is $100k, my exclusion is $250k. So, $350k is non taxable. However, there is $650k that is taxable at a capital gains rate of 15% or $97k due in taxes. (Note also that your total AGI will soar with the sale and that you will also jump into a higher tax bracket for all your income)

My Sister and husband ran into that problem last year. They wanted to sell their house, paid $50k forty years ago and it lists for over $1million in today's market. They decided not to sell because of the high taxes they'd have to pay.

And note that, if the house you're selling is not your primary residence, then all your profits are taxable. It's important to know the tax laws. Read further:

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic No. 409 covers general capital gain and loss information.

Topic No. 701 Sale of Your Home | Internal Revenue Service (irs.gov)
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Crucial information... Thank you so much for posting this!

I'm thankful for all the helpful things people have been posting here.

I think it's really important that both the pros and cons be discussed realistically.

It's obviously not as simple as, "But a house, sell it for a huge profit later!" or "Rent out a house and pocket all the profit with little work or money!"

I hear and see claims like this all the time.

I'm grateful to everyone who is posting their best advice here, and have no doubt you are helping several people.

Thank you!
 
JohnDB

JohnDB

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Jan 16, 2021
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arthurfleminger said:
Seoulsearch, you mentioned some expenses in selling a house, "Down payment, closing costs, repairs and updates, and the cost to move/relocate -- selling doesn't seem like it will put them any further ahead and will actually cause them to lose money in the long run."

You left out a major expense in selling a house, that's 'Capital Gains Taxes'. That's correct, for houses that have soared in price, expect a hefty capital gains tax on it, when you sell it.

The US Federal government currently has a capital gains tax exclusion for houses that are sold. That exclusion is $250k for single filers and $500k for joint filers. That means if you're single and sell a home and make less than $250k profit, then you own no capital gains taxes, same for a $500k gain for joint filers.

But, if you profit more than that you will be taxed. Let's take the example, I'm single and bought my home for $100k and sold it for $1million. My cost basis is $100k, my exclusion is $250k. So, $350k is non taxable. However, there is $650k that is taxable at a capital gains rate of 15% or $97k due in taxes. (Note also that your total AGI will soar with the sale and that you will also jump into a higher tax bracket for all your income)

My Sister and husband ran into that problem last year. They wanted to sell their house, paid $50k forty years ago and it lists for over $1million in today's market. They decided not to sell because of the high taxes they'd have to pay.

And note that, if the house you're selling is not your primary residence, then all your profits are taxable. It's important to know the tax laws. Read further:

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic No. 409 covers general capital gain and loss information.

Topic No. 701 Sale of Your Home | Internal Revenue Service (irs.gov)
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But if you put everything into buying a new home the capital gains don't apply.

Debt can be a useful tool or a monkey on your back being a taskmaster with you as the slave.....

Borrow money for things that go up in value for a lower interest rate than they appreciate.

Pay cash for things that depreciate in value....like cars, educations, electronics, clothes, and groceries.

Of course the paid off home mortgage is better than a BMW as a status symbol....15 years is a long time....but 30 is even longer.

1 in 6 people will have some disability necessitating a job change. 80-90% of people will be unemployed at some point.
 
JohnDB

JohnDB

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MsMediator

MsMediator

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People should rent or own depending on what makes them happy. Both rental and ownership in their own way are sunk costs. We all know money in the end is meaningless. Owners may come out a bit ahead in the long run but it is not worth it if a person does not want the responsibility and inflexibility of ownership. With rental, only rent the space you need...the extra bedroom isn't worth the cost if you don't need it. Home ownership may create generational wealth but most of that wealth is gone after a few generations (I think this just shows God wants us to plan for the future but not too much).
 
Kireina

Kireina

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Owning a house in your 20's màybe,let's say when you are 25(years old) is the best for me....because for example your loan term is 15 years(if u can pay the property in cash you won't need a bank loan but not many young men and women can buy a house and lot at a young age...but there are those who can )...by the time you reach the age of 40 you are already done paying your loan 😅 ☺️...

Ahhh One of my regrets not really hmmmm but something like that coz when I was 30 I bought a piece of land in a subdivision...my friend advised me to get house and lot instead of buying just the land ...I was too scared of debt so I didn't apply for a house and lot loan. The price offer was too cheap that time, compared to the price of the house and lot I bought 2 years ago.


I paid off my previous loan already but I got another one at the age of 42 how I wish I grabbed that opportunity when I was 30 yayy but you know I feel like it was not the right time yet...or maybe it was...I was just too scared... However buying my house is the best ever decision I made no regrets about it 🙏🏻❤️


I don't expect someone in their 20's to own a house already but my advice is...get one while you are still young....it doesn't need to be big or expensive....as long as it is yours with legal papers ...

I am here now back in my country and staying in the house I loaned from the bank lol but it is nice lol It is so different you know...that feeling of comfort you experience...the happiness you feel when you clean your own house when you decorate it...when you prepare something in the kitchen,shower in your own bathroom it is so different ☺️ I am sentimental about it lol but it is really nice ☺️
 
JohnDB

JohnDB

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Jan 16, 2021
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Kireina said:
Owning a house in your 20's màybe,let's say when you are 25(years old) is the best for me....because for example your loan term is 15 years(if u can pay the property in cash you won't need a bank loan but not many young men and women can buy a house and lot at a young age...but there are those who can )...by the time you reach the age of 40 you are already done paying your loan 😅 ☺️...

Ahhh One of my regrets not really hmmmm but something like that coz when I was 30 I bought a piece of land in a subdivision...my friend advised me to get house and lot instead of buying just the land ...I was too scared of debt so I didn't apply for a house and lot loan. The price offer was too cheap that time, compared to the price of the house and lot I bought 2 years ago.


I paid off my previous loan already but I got another one at the age of 42 how I wish I grabbed that opportunity when I was 30 yayy but you know I feel like it was not the right time yet...or maybe it was...I was just too scared... However buying my house is the best ever decision I made no regrets about it 🙏🏻❤️


I don't expect someone in their 20's to own a house already but my advice is...get one while you are still young....it doesn't need to be big or expensive....as long as it is yours with legal papers ...

I am here now back in my country and staying in the house I loaned from the bank lol but it is nice lol It is so different you know...that feeling of comfort you experience...the happiness you feel when you clean your own house when you decorate it...when you prepare something in the kitchen,shower in your own bathroom it is so different ☺️ I am sentimental about it lol but it is really nice ☺️
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I knew a kid in High School...his grandparents left him a plot of land. (They were farmers) Since he worked part time at a building supply he had access to materials....and when he graduated high school he owned his own house and pickup truck outright....no mortgage. He went on to university....can't remember what he studied as I left the area for my university studies.

I remember the pictures....he never showed us pics of the inside....but I can imagine. He was a guy....a bachelor. Women tend to decorate better. For us guys, a pool table, video game center that doubles for watching games and a mattress in the corner are usually the highlights of a bachelor pad.
 
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