GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Wed Jul 30, 2014 6:19 pm




Post new topic Reply to topic  [ 10 posts ] 
Author Message
 Post subject: Won't be having kids-Why buy a house?
PostPosted: Thu Jan 31, 2013 2:42 pm 

Joined: Thu Jan 31, 2013 2:31 pm
Posts: 4
Hi everyone,

I'm 42 years old and have owned 3 different apartments in the past. Because of a failed business and a family member who needed assistance, I am just now feeling like I am getting out of financial hell and am back on track. I have a significant student loan (about $100k) but no other debt. Just got a great job making more than I have in my entire life, have $10k in emergency savings, $16k in retirement funds and my current housing costs are only 35% of my take home pay while living in NYC.

Question: If I never plan to have children, why should I ever buy an apt or house?

I feel like I just need money for long term care when I'm older, other health costs, and living expenses. I probably won't even retire until I'm 70-75, which I'm ok with since I love what I do. Wouldn't I do just as well continuing to save and diversify into bank accounts, 401k's, etc.?


Top
Offline Profile E-mail   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Thu Jan 31, 2013 3:29 pm 

Joined: Mon Feb 04, 2008 7:35 am
Posts: 1148
Location: Maryland
Is someone forcing you to buy a house?
If you don't want one, don't buy one. I'd pay off the student loans, and boost your retirement. 16k at your age isn't very much, but if you plan on working until you keel over, does it really matter? Why save at all?

You have to figure out what you want for your life and then you can attempt to reach some goals. If you don't have goals, enjoy doing what you're doing!


Top
Offline Profile   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Thu Jan 31, 2013 3:53 pm 

Joined: Thu Jan 31, 2013 2:31 pm
Posts: 4
Don't WANT to own a house necessarily, but want to have good position when I am old and sick. I didn't think owning a house would help me until I keel over, but I wanted to hear from others to check in with myself a bit.


Top
Offline Profile E-mail   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Thu Jan 31, 2013 9:20 pm 

Joined: Sun May 29, 2011 4:50 am
Posts: 169
They say that buying a house can be a hedge against inflation because the payments are fixed over the term of the loan, but if you're in a rent controlled flat in NYC, I suppose that's not an issue for you.


Top
Offline Profile E-mail   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Mon Feb 04, 2013 3:58 pm 

Joined: Fri Sep 12, 2008 12:29 pm
Posts: 1599
Location: Seattle, WA
There is nothing inherent about kids that require an owned house, nor about owning a house that requires kids.

Generally speaking, owning has lower costs, given a long enough time frame. So even single people who have zero children, cats, spouses, and houseplants could buy a house. The trick is that you have to stay in the house for some number of years before you reach the breakeven point, after which the average yearly cost of owning is less than the average yearly cost of renting. Note that it's theoretically possible, especially in weird markets like NYC, for that breakeven point to be longer than the lifespan of average human.


Top
Offline Profile   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Mon Feb 04, 2013 4:02 pm 

Joined: Thu Jan 31, 2013 2:31 pm
Posts: 4
Thanks stannius, do you know where I can find a formula to help me determine when my breakeven point is?


Top
Offline Profile E-mail   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Mon Feb 04, 2013 4:18 pm 

Joined: Fri Sep 12, 2008 12:29 pm
Posts: 1599
Location: Seattle, WA
http://www.nytimes.com/interactive/business/buy-rent-calculator.html


Top
Offline Profile   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Mon Feb 04, 2013 6:00 pm 

Joined: Thu Jan 31, 2013 2:31 pm
Posts: 4
Thanks stannius! The calculator works great. Wish it could tell me what would happen if I wait to buy for 5 years. ;)


Top
Offline Profile E-mail   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Tue Feb 05, 2013 6:58 am 

Joined: Fri Jan 18, 2013 7:21 am
Posts: 95
Location: New York
elmilagro wrote:
Hi everyone,

I'm 42 years old and have owned 3 different apartments in the past. Because of a failed business and a family member who needed assistance, I am just now feeling like I am getting out of financial hell and am back on track. I have a significant student loan (about $100k) but no other debt. Just got a great job making more than I have in my entire life, have $10k in emergency savings, $16k in retirement funds and my current housing costs are only 35% of my take home pay while living in NYC.

Question: If I never plan to have children, why should I ever buy an apt or house?

I feel like I just need money for long term care when I'm older, other health costs, and living expenses. I probably won't even retire until I'm 70-75, which I'm ok with since I love what I do. Wouldn't I do just as well continuing to save and diversify into bank accounts, 401k's, etc.?


The amount of house you buy (or rent) should depend on how much space you need. The same would be true if you had kids.

Buying or renting depends on the particulars of your neighborhood and how long you plan to stay. In different situations buying might be cheaper.

_________________
http://debtblag.com

Track my fiscal fitness with $0.5 million in debt: http://getrichslowly.org/forum/viewtopic.php?f=11&t=61052 Latest update: As of April 16, I've paid off $21,400 in credit card debt this year (after starting with $35k)


Top
Offline Profile E-mail   
 Post subject: Re: Won't be having kids-Why buy a house?
PostPosted: Wed Feb 06, 2013 8:10 am 

Joined: Fri Jun 25, 2010 3:06 pm
Posts: 81
I think I'd keep renting. If nothing else, pay back the student loan first and then decide.


Top
Offline Profile E-mail   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 10 posts ]  Moderators: bpgui, JerichoHill


Who is online

Users browsing this forum: Google [Bot] and 22 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki