Climate Change Should Make You Rethink Homeownership
Climate Change Should Make You Rethink Homeownership
Renting is quickly becoming a better way for many people to enjoy high-risk places with much less financial baggage.
I don't agree with this article unless they're solely talking about living in a disaster-prone area like Florida. There's going to be risks with homeownership just like there's going to be risks with owning anything, especially thanks to climate change and increasing natural disasters.
Honestly, this article leans more on the side of the mentality of landlords, since it essentially is saying 'the world is risky, let landlords shoulder this burden' and doesn't even acknowledge that you gain no future equity from renting. You can walk away from a rental with nothing but at least you can sell a house and regain some, if not all, of its value.
Leasing businesses and local landlords have bought up so many houses that people would've normally been able to afford and now want you to rent them instead of buy them. We don't need more reasons for renting to be the only option some have.
also, cost. homeowner ship doesn't really make sense in a lot of situations anymore in the US If your mortgage costs significantly more than rent.
Yeah but at this point, I don't know a single person or family paying higher mortgage costs than the average rent in an area, across multiple northern and southern states.
True enough inside any sizable cities.
I'm factoring in traveling but didn't make that clear.
there are still a lot of rentals you can find outside of cities for 10 to 15 bucks a day with monthly specials, or there were a year ago when I was driving across the country last year.
If living 45 minutes outside of the city proper, you can get pretty good rental rates.
Have an asset that likely with appreciate, paid off after 30 years. Or continue to pay for a place to live for 60 years?
Financially, if you can afford it, housing is a good way to solidify your worth and lay a foundation for your future and retirement. If you pay off your mortgage, by the time you retire hopefully your set income won't have to pay for housing anymore. Only property tax and maintenance.
"Have an asset that likely with appreciate, paid off after 30 years."
big assumptions with no starting values.
are you paying 500k off? 750k?
are you adding in the cost of home repair?
escrow and finalization fees?
interest from your mortgage?
how about utilities?
property tax?
capital gains tax?
If you take average numbers for the costs of American homes right now (450-500k) plus all the practical costs of owning property, it is still cheaper to rent for 60 years at $1,000 a month rent then to pay for that house over 30 years. Indian
Another US centric article.
I never understood why some people insist on owning property. Especially more than one. Never really able to afford it myself. The Army (UK) cushioned me for a while and then when I left, there was no way to get a mortgage. Maybe if I'd saved instead of enjoying myself. Too late now though.
Owning your home outright nearly gurantees you have the basic need of housing meet and that is by far the most expensive to meet in developed countries. Food, water, heating and electricity are not that expensive. That gives you quite a bit of security especially when you get older. The big problem is obviously to be able to afford buying a property in the first place, which is hard.
About that food, water, heating and electricity not being that expensive. I'm afraid that won't be so true in the future. UK is leading here.
'Food, water, heating and electricity are not that expensive'
Should have mentioned I'm in UK. That sentence doesn't apply anymore.