Posted on 07/08/2023 8:36:09 AM PDT by millenial4freedom
If you’re a retiree and you’re trying to square the circle of rising costs, longer lifespans, more expensive medical care and turbulent markets, don’t be afraid to run the numbers on your biggest investment.
That would be your home — if you own it.
U.S. house prices are now so high that it is almost impossible for seniors not to ask themselves the obvious question: “Should we cash in, invest the money, and rent?”
Right now the average U.S. house price is nearly $360,000. That’s about a third higher than just a few years ago, before the COVID-19 pandemic. The lockdowns, the panic, the stimulus checks and 2.5% mortgage rates have all passed into history. But the sky-high prices remain — for now.
At these levels, analysts at Realtor.com — which, like MarketWatch, is owned by News Corp. — say that in 45 out of 50 major U.S. metropolitan areas it is cheaper to rent than it is to buy a starter home. The Atlanta Federal Reserve Bank says national housing affordability is abysmal — about where it was in 2006 and 2007, during the big housing bubble.
(Excerpt) Read more at msn.com ...
I think you are supposed to have fun by making snide remarks and berating people. ;-D
That falls under “boomers”.
I’ve thought about this scenario like everyone else, but the gamble is way too high. The current home price bubble SHOULD pop, but continued constraints in the supply of homes seem to be keeping those prices propped up, even with higher interest rates weeding out many potential buyers. If you were to sell and rent right now, you might throw a lot of your equity down the toilet before prices decline significantly.
This article assumes boomers should sell their homes to cash in. Incorrect. If boomers truly want additional income, they should keep the house and rent it and then find their own affordable place to rent.
That way they keep a very appreciating asset, make money monthly, and have enough to pay rent on a smaller place.
We’re keeping that dang Odyssey until disintegrates as well.
You may not be writing the check to your local property tax assessor, but rest assured you ARE paying the property tax in your rent payment. And your landlord gets the tax break by deducting that as an operating expense, not you.
Rents are rising too, so it most likely is not worth it.
Hi there. I was researching on Ancestry.com and it turns out I am actually your son.
Don't forget your favorite son in your will.
Oh yes you do. Your rental fee covers the landlord’s property taxes. It may be a smaller % especially if it’s a building shared with other tenants but your indirectly paying property taxes.
How could I ever forget you?
Heh, so then the left can force the renters to not kick out those not paying, ruing the property, having pot parties, etc? Nope, not even close to a light year of sanity.
Heh, so then the left can force the renters to not kick out those not paying, ruing the property, having pot parties, etc? Nope, not even close to a light year of sanity.
Some of the tax is in your monthly rental, every month. Don’t think the landlord is going to pay that, himself. You’ll get some of it, too.
I hate to break reality to Brett, but... rents have also gone sky-high. So why pay over a thousand a month for a rental apartment, when you could be paying that on a house that you own. It makes no sense.
The demand for housing has skyrocketed because of our open borders, for one reason. The law of supply and demand is what is driving this problem and as usual, it’s the radical left that has caused the problem. Look for them to swoop in and campaign promise to “fix” these problems, and in turn, make things ten times worse..... also, as usual.
Money is fungible. You pay your landlord who pays the bureaucracy.
Bottom line: you pay.
And no equity to boot.
Though renters will never have to worry about home equity theft, will they?
In those states you don’t own your home, even if your name is on the deed.
You just rent it from the government.
That’s true. But owning is ridiculously high too. 24K for new roof every 20 years. New air conditioning 8500 every12 years. New appliances 5000 every 2” years if you’re lucky. Property taxes and home owners 6 grand a year. Painting the house every 15 years 4 grand. And then utilities.
No equity.
Property Tax + School Tax = Monthly rent.
Where do I begin...
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