Rent or own - as in your primary living quarters?

[SSOWorld]

Many of us tend to vary as in our favorite way of celebrating our hobby and some of those tend to rack up against our financial burdens.  For example, taking random road trips will cost money in terms of (Car fuel, wear and tear, repairs) meals (restaruants/MTOs like Sheetz/MYO from grocery), sleeping accomodations (hotels/campsites/the back seat of your car), etc - others just discuss with photos, video, forum topics, others still contribute services via websites, etc.

To the point - the fact of the matter is our celebrated hobby costs money - and depending on how you budget - that money will add up.  The consequence of that is that long term financial goals will be significantly delayed - one major one would be your living options if you wish to buy a house.

To those who take random road trips, what's your preferences as far as living options are concerned?  Options I understand are:
* Rent an apartment or condo
* Rent a house
* Buy a condo
* Buy a house
* Rent a campsite in your own RV, travel trailer or motor-home
* live on the street in or in your car j/k

This is actually a serious thread so no sarcasm - the last bullet is obviously the desperation option.  There are obviously pros and cons to each of the options listed. 

For renting - you don't have to deal with maintenance costs, but you live in a community and can't decorate - especially if your renting an apartment/condo - but don't bet on decorating a rented house either.  for apartment/condo you need not worry about mowing the lawn/snowblowing or *pain* shoveling snow except to rescue your vehicle (if you own one) (location dependent obviously)  Utilities may or not be included - often depends on the property and/or owner.  When renting, if a utility is included, that often racks the rent higher, but not all cases fit this.  Insurance costs are smaller too, but still you need to insure the stuff you keep in your dwelling as well as liability.  Renting is a short-term solution - often paired with "you just moved here and don't own yet", "you don't plan to be here long", or "You just joined the workforce out of college and are establishing your finances." On the other hand you're building someone else's equity - especially if renting a house. (often apartments are owned by a large holder that owns complexes in multiple cities). What you pay is at the mercy of the landlord and often you're locked into a lease (usually to prevent vacancies due to sudden move-outs)

For ownership - you're footing the bill for everything - appliances, utilties, landscaping, repairs or replacement (such as the roof), you shovel the snow (again location variant), mow the lawn, water it (well maybe not in California ), etc.  You have to pay property taxes on it, you also have to pay a higher insurance cost.  Depending on where your house is - supplemental insurance is necessary (Flood, fire, etc).  That being said, you build equity on your home via whatever you do and you have the freedom to do whatever the <insert precision-f-strike here> you want with it (though destroying it is the last thing I would do ).

The tax breaks (at least in the U.S. where taxes are tightly bound to how you live - I'm not aware of other countries' tax practices) for both are there, but from what I hear the tax breaks for ownership seem advantageous - especially if you are pretty set on being there long term.

Pricing varies by location (as in where you are) but if you're smart enough you would have an income that mirrors that cost.  This topic does not discuss cost of living so keep that out of the picture. This is to feel out long term goals, what the road hobby would do and how you would compensate to meet them (no details, just general - What $$$ you spend is your business).  This also does not consider what your family goals are either - though they do factor into this - that's also another topic.

While we have our own opinions, please do not use this topic to persuade the community that your opinion is the only valid one.  Respect everyone's wishes.

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I am putting this out to get the topic going - I will put my answer in a reply later.

[oscar]

ISTM that housing decisions are not that different for us compared to the general population.  Some points where we might differ from the average:

-- since we're spending more time on the road and less at home, that could tip the scale toward living in a smaller place

-- ditto for those of us who like to snowbird (for example, I know many people who winter in Florida or Arizona)

-- also, it's good to live in a place with an apartment/condo manager to take care of things such as snow removal, emergency roof repairs, etc. while we are out on extended road trips (especially ones lasting a month or more)

-- if there's a good chance we'll fall in love with some place we see on the road, and decide to move there, it'll be better to rent than to own

-- good parking is a must, and also good to be able to hit the road quickly without having to fight our way out of town, so that could tip the scale against big-city living.

Personal preferences, and work/money/spouse etc. factors, could override any or all of these considerations.  (For example, you might think that since I road-trip all over North America, that I'd prefer a more central location than the D.C. area, espcially since I'm no longer job-bound here.  That's not quite how it's worked out.)  "Your mileage may vary" is huge here.

[kkt]

Road geeking can be a pretty inexpensive hobby.  You could reduce it to what you can find on the web if you had to.

I own.

[vdeane]

I rent an apartment and don't see that changing any time soon.  I like not having to worry about maintenance/yard work/snow removal and I honestly don't need much space.  Pretty much anything above a 1 bedroom (depending on room dimensions that can increase to 2 bedroom depending on the apartment, but I like having my office and living room in the same spot so 1 bedroom is preferred) is too much room for me.  I looked at condos just for the heck of it (not nearly ready to make a big purchase like that; even my car is leased) and everything is 3+ bedrooms around here.  I can't even begin to think about how I'd fill that up.  Only thing I'd want on top of what I have now is a laundry room (sick of going to the bank for quarters) and covered parking.

[1995hoo]

I own. Lived in my current townhouse since July 2001. Ms1995hoo rented nearby and moved to my place two months after we got married (why after? Timing based on how her lease was structured). I kind of wish we had a two- or three-car garage (the latter isn't an option in this neighborhood anyway), but c'est la vie. When I bought this house, there was an end unit up for sale with a two-car garage further up the same block, but the price was higher than I wanted. In retrospect, that's probably a good thing because our combined incomes are less than what I was making back then. Circumstances change.

[Pete from Boston]

Rent.  Frustrating because I cannot significantly modify the house (insulation, please), but I'm not committed enough to where I am to pay the exorbitant purchase costs right now.

[jeffandnicole]

Own.  I have a small rancher that thankfully has a nice extension on the back, making it about 50% larger than most of the homes in my area.

I have considered selling and buying something bigger, but the only reason in doing so would be to have extra room.  It's me and my wife (and her mom, and we get along great before anyone comments).  We really have no reason for extra room, except to fill it up with junk, then we'll have to heat and cool the area, not to mention clean it, which we don't do on a regular basis as is.  I would definitely like a garage or a basement or a larger yard, but they aren't needs, just wants.  We have a pool and a wooded backyard, which are very nice.  And the neighborhood of ranchers allows us extra privacy in the backyard, as neighbors don't have a 2nd floor to peer over into our yard.

[Scott5114]

We rent a house. At the time we moved in, we had a border collie who needed a big yard, and that meant an apartment was a no-go. I would like to buy a house since building equity in an asset is more appealing than a monthly expense, but I am not yet married, so buying one right now would complicate my legal position.

[bandit957]

I rent. Nobody around here owns anymore.

[briantroutman]

I'm renting for the time being. In this part of the world, home ownership seems limited to three groups of people.

One consists of the elderly who hit the property appreciation lottery. They were awake nights, worried about taking out "enormous"  $25,000 mortgages in 1960, and now they're sitting on multimillion-dollar estates.

The second is made up of people who cashed in on startups at the right moment, had stock options, and the like.

The third mainly consists of global ultra-wealthy types who consider a home here to be an essential accessory–like a Hermes bag and a Maybach.

An entire class of people–many of them college educated, bright, industrious, and making six-figure incomes–will never own a home because if you go by the old three-times income rule, you can't afford the average home until you're making well over $300,000.

[The Nature Boy]

I've seen the "allure" of home ownership cause some people to buy mobile homes just so they can say that they "own their own home."

I rent and have no problem with it. It makes me more geographically mobile.

[oscar]

I've owned my 1-bedroom condo apartment since 1987, after leasing it for five years.  But leasing is a popular alternative in my area, and in recent years many new apartment complexes originally planned as condos were opened instead as rentals.

[corco]

I rent, but I'm saving up for a down payment on a condo.

Condo ownership is sort of best of both worlds- maintenance is taken care of outside, but you're responsible for your inside. That makes traveling easy- if I want to go back east for a couple weeks, I don't have to worry about my domicile turning into an eyesore unless I pay somebody to do upkeep.

For me the decision is based on the housing market. Here in Helena, of course I'll buy, as property turns over quickly here and prices are stable. As the state capital in a state with a diverse economy, it's less likely to be hit by an economic downturn, so for me in this city, even if I had to sell I could do it pretty quickly and easily. Because of the current housing shortage and the fact that people with low to moderate incomes often can't afford to buy in today's economic climate, rent gets to be pretty spendy. I pay $700 a month for a small condo valued at probably $90,000 on the open market.

When I lived in Tucson, I would have continued renting had I stayed. In that place, rentals were bountiful and cheap (I paid $480 a month for a more modern version of what I live in now), the area is very highly affected when the national economy goes south, and housing units didn't turn over that quickly. No reason to buy there, and little guarantee that your home would hold value.

[SteveG1988]

I pay my grandparents money to live at home, i get to park a vehicle there, food and stuff is even cooked. It helps them survive on a fixed income so i don't mind paying for when i don't use the house.

[Mapmikey]

own...mortgage paid off earlier this year.  Managed to buy before Northern Virginia prices took off in this area, then refinanced to 15 year mortgage when I got a better job.

Not likely to buy another free-standing house but would consider a retirement community where yard maintenance was handled by others.

The wife and I are considering taking 3-4 month trips to seasonally attractive locations and renting furnished apartments or extended stay hotels once we retire (5-12 years from now).  This will pattern well with Mapmikey wanting to explore new regions more intimately (re: clinch more US routes).

My cost per clinch trip is magnified by living too close to a coastline, so I pay to drive over the same roads over and over to reach places that are new, since 120 degrees of direction are unavailable to me...

Mapmikey

[Takumi]

I rent a house from my dad (although I live alone in it). To echo Scott, I have a large dog (a black Lab in my case) that needs a big yard to run around in. I get the best of both worlds - apartment cost of living with the space of a house, plus a driveway and garage.

[cjk374]

I co-own with my siblings.  My mom died unexpectedly in 2003.  She had no will, so all of her property became co-owned by us.  I'm the only one who wants to live in the house we grew up in.  Can't argue with a "free" house.

But this old house needed major upgrades this past year, and still needs more.  I'm getting married in June, so all of our tax money has to go to the wedding.  In 2016, we will probably need a new "family" car...then in 2017, my Challenger will be paid off, but then I will have to put more money in the house by then.

I WILL make it to a roadmeet somewhere one day.  Just gotta get stuff done.

[jeffandnicole]

Let me throw his in for fun as a homeowner, although a renter still pays it as part of their rent.

I own the previously mentioned rancher on about 1/6 of an acre. This year, my taxes were over $5,000! At least trash, recycling & snow removal are included.

[golden eagle]

I rent. My mom and brother own the house I live in.

[allniter89]

Mortgage is paid off in 19 mos then I will own a 2 bedroom home on an acre of land 10 miles from town.    I love the peace & quiet of the country. I have no neighbors within sight. We have a well for water so our only monthly home related expenses are electric, insurance, Dish, phone & internet.

Here's a question for the renters. Do you have renters insurance?

We live in Florida so snow isnt a problem, I have a rider mower to trim the grass. I do most repairs on the property. I enjoy working around the house. I've built a pump house for the water pump, shelving inside home & my work shed and a handicap ramp. Now I'm building hurricane shutters for the windows & next will build either a garage or maybe just a cover to keep cars out of sun.

I expect this to be my last home, 18 yrs of moving every 2yrs (dad was USAF) & 20 yrs of otr truck driving have taken care of my urge to travel. The rudeness & insanity of other drivers has taken the fun out of driving for me IMO.

Anyone in the area July 28, 2016 is welcome to my burn the mortgage bbq  

[DaBigE]

Rent an apartment, as I have since dorm life ended mid-way through college. I'm currently in my second "big boy" apartment (post-college apartment, with better furnishings ). Definitely don't miss outside maintenance, nor the cost of replacing major stuff (appliances, etc.). However, as much as I don't miss having to shovel snow, I don't like being stranded/snowed-in while waiting for others to plow us out.

As I have discussed with my gf (soon to be future wife), this will probably the last apartment. We would like to have our own place where we both can park in a garage, as well as do our own renovations as we can afford it. Also looking forward to being able to experience a bit more of my surround sound system

Here's a question for the renters. Do you have renters insurance?

Yes. I've had it since my college apartments.

[SSOWorld]

renter's insurance pretty much is a requirement nowadays.

[bandit957]

I hate insurance with a passion.

[6a]

My dad downsized so we moved into his former place and are renting it from him. One of these days we'll probably buy it, unless I get tired of suburban life.

[Duke87]

I am only interested in renting, at least for the time being.

The trouble I have with purchasing property is that it is only advantageous financially if you're in it for the long haul. Home ownership is very risky as a short term investment since property values can be quite volatile. Look no further than everyone who ended up with underwater mortgages in 2008.

So what this basically means is that buying property is to some degree making a commitment to settle down and stay there for a while. I therefore think it does not make sense to do if you are not married.


As for renter's insurance, no I do not have it and see no reason why I should. By nature what I would pay to the insurance company would exceed the financial risk, else they would not profit. So no thanks.