In four years, I plan on retiring. Because of my job, I have never owned a home...moving every few years, and then my job furnished housing.

Anyway, everyone says that I'll finally get to buy my own home. I'm just not sure I want that. Realistically speaking, I won't live to pay it off...if I do a 30 year mortgage. And, 15-20 years into the mortgage, I'll have to start replacing things. At this point, I am looking at the wife and I moving into a 2-3 bedroom apartment in the Metroplex. While I realize that I'll possibly be paying more per month (than a house payment) I won't have to pay for upkeep...no lawn care, etc.

When I voiced this opinion to my in-laws and some friends, they freaked. Things like, you're throwing your money away and it's not an investment etc. I look at it as a living expense...I either pay $1,500 for a house or $1,500 for an apartment where I have few responsibilities and can "lock and go" when the wife and I want to.

Apparently it's criminal to consider renting instead of owning. Also, if we end up choosing to (or having to) move near our kids, we don't have to worry about selling a house. Also, if an apartment complex begins to "go down," we can move...with a house, if the neighborhood goes down we'd have to sell and possibly lose value. Anyway, renting instead of owning is not a popular idea...at least in my circles.

Would appreciate any thoughts...

Although there are certainly pros and cons to both, I think you're definitely in the minority with your logic. But as is the case with most things in the real world, it's largely dependent upon your specific scenario in life.

I may find some time later to elaborate but the super simplest explanation:

Macro-level and longterm historical implications: Property rights and to a large extent, home ownership, have been paramount in the economic well being of a nation and its citizens.

Mico-level: It's typically (although not always) one of, if not, the best paths possible for Americans to build financial wealth.

I certainly get where you are coming from.

Pros for home ownership: 1) you lock in your housing costs. Rent goes up every time you have to renew but when you get a fixed mortgage you lock in that expense. 2). In most areas, a home will increase in value over 15-30 years. 3). You typically get more space in a house vs an apartment for the same money. 4). If you buy maybe your neighbors won't be 1 wall away (personal preference)

All that said you do have yard maintenance, things to fix and if you want to move you have to sell it - instead of just packing up and moving at the end of your lease.

As for throwing away money renting eh maybe, maybe not. If you take a 30yr mortgage and pay it for 30 years your going to roughly double how much you pay for that house - interest and all. The chances of that same home doubling in value over 30 years is unlikely (but California says hi). So if you really want to capitalize on increased equity pay off the home as quickly as possible, reducing the amount of interest lost. In other words, if you never plan on paying off a home then I would say renting isn't any worse.

I have always thought of my home as an investment. Will have my current one paid off when I hit 65. At that time I will either sell it to boost my retirement or move back home and live in it. It will have doubled what I have paid for it. I rent it out now for close to the monthly payment. I have always considered land and my house as my savings account and a part of my retirement plan.

You are placing a lot of emphasis on the ability to move around easily. I understand that. I doubt anyone here will tell you anything you dont know. Dont worry about the inlaws opinions and do what is right for you. You are certainly smart enough to figure it out.

The main reason to own is that the government has determined home ownership is good and thus encourages it via the deduction of mortgage interest and property taxes. Depending on what markets you live in, renting can be better or worse, but that is likely difficult to determine.

There is also the forced savings that a home can create. For good savers that is not important, but most are not.

FWIW my home has more than doubled in 20 years in Dallas. That is also a little fools gold as that has required significant money in both upkeep and updates.

Limited IQ Redneck in PU said:

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I have always thought of my home as an investment. Will have my current one paid off when I hit 65. At that time I will either sell it to boost my retirement or move back home and live in it. It will have doubled what I have paid for it. I rent it out now for close to the monthly payment. I have always considered land and my house as my savings account and a part of my retirement plan.

You are placing a lot of emphasis on the ability to move around easily. I understand that. I doubt anyone here will tell you anything you dont know. Dont worry about the inlaws opinions and do what is right for you. You are certainly smart enough to figure it out.

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I think I would consider it part of retirement if I owned one...or could by 65. But I likely won't even buy until that age...mainly because I need to wait and see where my kids eventually settle...so an apartment is a must for a few years anyway.

True home ownership is kind of a mirage anyway, especially in Texas with the hefty property taxes. Not a complaint necessarily, just a fact.

Yeah kinda. They do cap our property taxes once we reach retirement age. Also I still kinda prefer a property tax to an income tax, if I want to lower my taxes I can move to a smaller home and not have to lose income. If you rent you will still pay property tax, it's just included in the rent.

You could buy a condo or townhouse in a growing/stable area of town, thereby accomplishing your goal of low up-keep, and you might have a lower payment then comprable rent on a similar unit, along with the benefits of tax deductible mortgage interest and property taxes (i.e. not only could your monthly payment possibly be lower, but a portion of it would be tax-deductible as well). Put it on a 10-15 year note (the payment percentage-wise is not much difference between a 15 and 30 year mortgage because of the increase in the interest rate), and you'll build equity quickly and could get out of it by selling it fairly easily if necessary. I know some seniors who are empty nesters are doing this in areas such as Uptown Dallas, Frisco, Southlake, anywhere the market is likely to remain strong and stable for quite some time.

Gunny Hartman said:

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You could buy a condo or townhouse in a growing/stable area of town, thereby accomplishing your goal of low up-keep, and you might have a lower payment then comprable rent on a similar unit, along with the benefits of tax deductible mortgage interest and property taxes (i.e. not only could your monthly payment possibly be lower, but a portion of it would be tax-deductible as well). Put it on a 10-15 year note (the payment percentage-wise is not much difference between a 15 and 30 year mortgage because of the increase in the interest rate), and you'll build equity quickly and could get out of it by selling it fairly easily if necessary. I know some seniors who are empty nesters are doing this in areas such as Uptown Dallas, Frisco, Southlake, anywhere the market is likely to remain strong and stable for quite some time.

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My max would be $250,000. This effectively leaves me out of the Frisco/Southlake market.

fadskier said:

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In four years, I plan on retiring. Because of my job, I have never owned a home...moving every few years, and then my job furnished housing.

Anyway, everyone says that I'll finally get to buy my own home. I'm just not sure I want that. Realistically speaking, I won't live to pay it off...if I do a 30 year mortgage. And, 15-20 years into the mortgage, I'll have to start replacing things. At this point, I am looking at the wife and I moving into a 2-3 bedroom apartment in the Metroplex. While I realize that I'll possibly be paying more per month (than a house payment) I won't have to pay for upkeep...no lawn care, etc.

When I voiced this opinion to my in-laws and some friends, they freaked. Things like, you're throwing your money away and it's not an investment etc. I look at it as a living expense...I either pay $1,500 for a house or $1,500 for an apartment where I have few responsibilities and can "lock and go" when the wife and I want to.

Apparently it's criminal to consider renting instead of owning. Also, if we end up choosing to (or having to) move near our kids, we don't have to worry about selling a house. Also, if an apartment complex begins to "go down," we can move...with a house, if the neighborhood goes down we'd have to sell and possibly lose value. Anyway, renting instead of owning is not a popular idea...at least in my circles.

Would appreciate any thoughts...

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Most Americans are broke and hip deep in debt.
Most Americans never own their house.
Most people are sheep who only do things because they think they are supposed to.

You like your lifestyle. What is right for you might not be right for other people. It sounds like you have things figured out. Don't listen to others, especially others who suck with money.


My wife and I only buy brand new when time to replace cars. We like the warranty and are willing to pay the first owner premium for piece of mind. It makes some in my family cringe. Of course the people who cringe about our buying new cars will go out and put $5000 in furniture on a credit card.