Owning a House

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A house is more than a place to live, it is the single most valuable asset that a person will likely acquire. It is a retirement savings plan. Generally speaking, a house will outperform an investment account.

Furthermore, in Canada, the growth in value of a principal residence is all tax free. Granted, there are significant borrowing costs, but taken over time, it is the best financial decision that you can make.

We count it by letter. First we owned a H, then a HO, that a HO and half the U -- that was hard to pronounce.

Maintaining a house, for two people like my husband and I, is really hard. I often feel like this place has been kicking my ass ever since we bought it. But I do like the sense of security and stability it gives.

I've owned an apartment for 3 years and am saving up money to buy a house. If things keep going the way they are going now, I should be able to sell my apartment and buy a house in approximately 2-3 years. Actually I could buy a house in some other area not too far away right now, but I like the area where I live now and I want to stay here, even though houses here cost a bit more.

I work full time and have a rather well paid job. My husband works full time too at a slightly lower paid job. We don't have children and we are very thrifty and economical and spend much less than we earn, so we manage to save up money rather fast. We do have a mortgage, but the payments are well within what we can manage to pay for.

Work and save.

I had a harder time renting. I really don't like people telling me what I can and can't do. If I want to rip down walls and combine rooms I can, if I want to install a 6 by 5 foot shower I can, if I want to put a workshop in the basement I can. If I want sky windows I can install them. I can do whatever I want here, no one can tell me no. The county can dictate a little, but not much.

we aren't all middle class here. a lot of us are working class or underclass, live from rent payment to rent payment and have absolutely no hope of ever being able to save such a huge amount of money.

This is not to contradict you, because what you say is very valid, but serious frugality is really underrated as a means of getting to home ownership. My husband and I thought we would never be able to afford a house in our very expensive area and weren't even trying. Then we got inspired by reading about frugal living. It was amazing what we accomplished once we put our minds to it.

It's not something that can happen for everyone, unfortunately--some people will just not have enough money no how hard they try. But it's something people shouldn't dismiss without looking into. It requires a lot of mindset changing and the first step is to be open to the possibility that it might work.

My predominant worry about housebuying is having to take out a dreaded mortgage....in other words, instantly landing yourself with a lifelong debt that, especially nowadays, would be difficult to ever pay off.

I know that I need my own space, and should have bitten the bullet a long time ago.

In order to afford a downpayment and to be granted a mortgage, I worked three jobs, working about 80 hours a week, and also lived in a place where I had a volunteer role, so didn't pay rent or bills. It was totally exhausting - I don't know how I did it, looking back, but I was extremely determined to have my own place. I was eventually able to buy a small one-bedroom flat.

However, owning a home brings on a lot of stresses of its own. I find it incredibly hard to keep tidy (well, I don't keep it tidy - it's a mess!) and I find paperwork and bills can be confusing and overwhelming, and I tend to panic when anything in my home goes wrong. Owning a home is a huge responsibility. Although on the whole I'm very glad to own my own place, there have definitely been times when I've wondered if it was worth it.

I have a good job and saved a lot of money by renting a very cheap apartment--so the down payment wasn't a problem. You might look at small 2 or 3 bedroom homes--not only are they cheaper, but they are likely to hold their value better than those big homes that are harder and more costly to maintain. As folks retire they are likely to need smaller homes, driving up the value of small homes.

I find it great to unwind in the garden after work.

A couple of things to remember about a mortgage:

1) Every payment, you are putting money into your own pocket. Each payment that goes by, you own a little bit more of your home.

2) In many cases, a mortgage payment can wind up being less than the amount that you would spend in rent for a similar property.

3) Mortgages are nice and predictable. You know know much you need to have available for each payment--and that amount doesn't go up during the term of the mortgage, which means that inflation is working for you, rather than your landlord.

Fixed rate mortgages are nice and predictable. Adjustable rate mortgages are not--we got a 15 year fixed rate mortgage--so the house will be paid off before I'm 55.

I have a mobile home currently and will be moving into a town home next month. If it were not for my mom and dad I would not have this opportunity( they are fairly well-off, not rich or anything). The hardest part for me has been cleaning my house.

Great topic and discussion.

I'm a 51 year old female and I paid $70,000 for my home in 1997. With the crazy market, at one point it was worth $175,000. Now it's worth $135,000. I bought my house when I was in my late 30's.

Prior to purchasing my home, I was a renter and moved about every two years. I don't know why I moved so often. Could have been my sensory issue with sound and trying to get away the sound of neighbors.

I love not having to move like I kept doing before buying my home. I can have pets. Neighbors are cool (sometimes there are few problems). I LOVE having my own home.

I have found that really there is very little maintenance (less than I thought would be needed). I have learned how to fix a faucet and a toilet. I just had a new roof put on after living here for 13 years. Sure I need new carpet, but the carpet is still usable.

Sooooo think of it this way, when you retire your residence is your biggest expense. If you can own your own home (whether it's a condo, manufactured home, stick house) you WILL NOT be at the mercy of someone else telling you what you need to pay. (Except if you live in a mobile home park, you still have to pay space rent, so it is better if you don't go that route long-term.)

You will be in a far better position if you can keep your expenses down when you retire.

What you need is a Realtor that you can work with that can explain things to you and help you overcome your fears. You can work with a Realtor for awhile then take a break. Later on find a different Realtor, take a break, etc. Until, finally, you decide one way or the other if being a homeowner is for you.

There are also books available. Even at the library. Take advantage of the first-time home buyer programs they are awesome. Basically, there is a lot support for first-time home buyers. I think financial institutions even have classes for first-time home buyers.

Get educated and get all the support you can.

I gotta go, the toilet won't stop running . . . just kidding. Good luck. Let us know if you become a homeowner.

Yes, you want to work with a buyer's agent, who represents you. A good agent knows about your town and can help you avoid "gotchas," like covenants and home owners associations that can limit what you can on your property. They split the commission with the seller's agent. It helps to inspect the house on a regular basis--I climb up into the attic every spring with a search-light to make sure that everything is still OK up there.

I have a two-family house so I have a tenant who pays rent on one apartment and I live in the other one. This has been a great way for the house to help pay for itself and to have some income from it. Two-family houses usually cost the same as single family houses, sometimes they cost less because they are less desirable and can be in shabbier condition, which also lowers the price.

Having tenants can be a hassle but if you choose them very carefully it can be problem-free. I have had the same tenant for over 6 years.

There's more maintenance, because you have to upkeep the tenant's apartment and do things like have her appliances repaired or buy new ones, so there's a little more to do,

It's been a bit overwhelming but not much more so than just taking care of the house itself.

Also, keep in mind the house is not actually rent-free. Property taxes and insurance can be quite high depending where you live, and they're a bit like paying rent every month.