17 answers

Sell House Rent Place

Did anyone ever just sell their house and rent a place even though you had the money to still keep your house? I feel owning a home is so expensive and one thing after another with a home it just keeps adding up and is so expensive. Also, I feel home ownership requires a lot of maintenace and fixing things up takes away time from kids. I also feel we would have so much more money if we didn't own a home! Yes, we could buy a much cheaper house too and have a much lower payment. However, is it crazy that I like the idea of renting since any repairs we'd just call the owner and it's then their issue? We do have little kids.

What can I do next?

Featured Answers

I understand what you mean. It's like the move Money Pit around here. We spend so much on repairs that it would be cheaper to rent and pay a maintenance fee.

I suggest you consider a condo with repairs included in the fees.

2 moms found this helpful

Owning a home is not for everyone. There is a lot of maintenance and up keep that never goes away. My husband’s ex tells my step kids all the time that they need to own homes when they are old enough. I have told them to buy when they are ready. And that renting offers a lot of flexibility. It is a big commitment and can easily tie you down.

2 moms found this helpful

More Answers

I can't imagine being a renter. I've got three kids, a dog (hopefully soon, back to two dogs), I like my house MY way (color on the walls, MY choice of flooring, decor, etc), I like to garden, I like to choose my own appliances, there's no END to why I'd be a landlord's worst nightmare! Let's face it kids are LOUD, plus I like the music loud while cooking and drinking on a FRiday night, sometimes I smoke in the garage. And kids BREAK stuff....

Sure, for the here and now of it, renting would be cheaper. But fastforward a decade and beyond, especially when the market goes back to normal, you'll actually OWN something, and you'll be able to USE that equity for a zillion different things.

Really, unless you're going to make a HUGE FORTUNE selling your house now (really?), in the LONG run, it's WAY more financially wise to own.

:)

6 moms found this helpful

Have you taken into consideration that when you're paying a mortgage payment you are increasing your equity, meaning you own something of value? When you're renting your rent payments do not give you equity. You're paying rent and only getting a place to live.

You can use that equity if you have a financial crisis. And once the mortgage is paid you own your home, which you can then sell for money and buy or rent when you're retired.

I have friends who paid rent their entire lives and are struggling to live now that they're retired. They have no equity to use. Another friend sold her house and does now rent. The sale of her house gives her the money to be able to live in a retirement facility. Otherwise she'd be struggling to live on Social Security.

Yes, renting may be easier as far as house upkeep but renting is living month to month. Buying is an investment that will help you in the future.
It is also teaching your children how to be financially responsible and planning for the future.

Planning for retirement may seem like something you can wait to do but if you want to continue living in your current lifestyle once you retire you have to have investments starting when you're young. I speak from experience.

I have a mortgage on my house. I'm refinancing and taking money out of my equity to do repairs.

Another possibility is for you to sell your house and buy one that will require less repairs. Then put aside a set amount in savings for future repairs.

5 moms found this helpful

Personally? I can't imagine being a renter. I DO see the "upside" of renting - any problem - broken heater/AC - not your problem....

However, I can't imagine NOT owning...not having a place to call MINE....wondering if the owner/landlord will think of a reason not to have us there anymore...or raising the rent...

What I have found as a home owner is that you need to FIX the problem instead of putting a band aid over it....our neighbors have done this for some problems they have been having with a home they are renting out...they have been putting "band aids" on the problems instead of FIXING it...they have spent more money in the long run putting temporary fixes (aka band aids) instead of just forking over the money to have it done right the first time.

Their home/rental unit has now sat vacant for almost a year...because of the problems they won't FIX...**THAT** scares me away from renting as well....

Maybe you should consider selling your home and buying a new one...smaller?? I don't know. I just know that I can't imagine renting...

5 moms found this helpful

I would never sell my house to rent. Now, I love my house, love that I can do what I want with it. Stay as long as we want, have privacy and build equity.
It's expensive to maintain but I don't look at that as expenses as much as investments. Maintaining a home helps it to keep or increase it's value in most cases. Unless you got banged hard in the bubble and you're underwater or in debt I would think selling to rent is not a good financial move.
The idea of not paying rent/mortagage during retirement is very appealing. That's at least $2000 per month (in my area for a little house or condo) I will not need to save towards retirement. What about the mortagage interest tax deductions? There's a fair amount you save right there especially in the early years of a mortgage. Also, rent will continue to rise over the years, you mortagage will not. I'd think long and hard (and consult a financial advisor) before becoming a renter, possibly for the rest of your life!

4 moms found this helpful

So far as I can tell the only time renting is better than ownership is when you have little equity to put down. I remember a guy quipping in the Wall Street Journal when he became upside down, I don't kid myself, I am renting. :)

Otherwise if you look at equity increases, tax deductions, in other words the benefits, vs the expenses in aggregate it is better to own.

I don't know about where you live but I own half my home, in other words I have quite a bit of equity. I pay 1,200 a month which includes escrow, to rent a home in my subdivision of the same size it is 3,000 a month. So I am not sure where all this extra money is you would have.

Marda brings up a very good point too, I could retire at 60 with no house payment. You will not hit a point where you will no longer have to pay rent. :(

So I guess the answer is no, I wouldn't do it.

4 moms found this helpful

I know an older retired couple who sold their house and bought a condo. They were no longer phyically capable of maintaining their home and it was a good choice for them.

For most owning your own home is part of the American dream, but not everyone has the same dream. Now is a really bad time to sell your home, but it's something you should consider and talk over with your husband.

4 moms found this helpful

Update: in response to some people's issues with not having the money for retirement - I completely disagree that your home should be your retirement. Yes, it sure is nice to not have to pay a mortgage or rent during your retirement, but your home should NOT be your only retirement $$. You never have any idea of what will be going on in the real estate market when you retire - you can't count on your house's value.

Original: I've had friends who, though they can afford it, have said they will never buy a home - always rent.

Many people who have only rented don't realize the amount of resources it takes to own a home - not just money, but time and energy, too.

My BIL and SIL have only rented. He recently had to replace three doors, window blinds, and some windows because their children/BIL's family had done some pretty extensive damage.

Some of the drawbacks... it's not your home so you can't always decorate/update the way you'd like. You've got to live with their appliances unless you're going to bring your own and possibly store any that come with the house. Unless you have the arrangement with your landlord, you have to contact them and wait for them to contact whoever for any repairs that need to be done. Any damage you would have to repair and/or pay for repairs. Say, you stain the carpet pretty badly - the landlord can charge you to replace the whole room's carpet if required (typically prorated for the age of the carpet).

If you're comfortable with it, don't worry about what others are doing or saying. Do what you think is best for your family.

3 moms found this helpful

S., I SO understand your feelings! I lived overseas in a nice apartment, and the super came in 10 minutes to fix anything that was wrong. And I didn't have to do anything to get stuff done - just ask! And when it was time to move, we just moved!

And now I own another house, one of many, and fix it up like I always do, and spend a lot of money to do it. When you buy someone else's house, you inherit all their issues and either choose to fix it or leave it be. I'm one of those "systems" fixers, so I leave the pretty stuff for when we move again.

I swear, if it weren't for the tax break, we would be renting now instead of owning. When we retire, then we won't be moving around for my husband's company. That would be a better time to own for us, I think. I would really like to live in an apartment again!

I don't know what to tell you - I'm sick of fixing stuff!

D.

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