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I’m a Grown Ass Man and I Rent My Place
Me? Not even close.
A lot of us are at the age where we’re considerin’ purchasing or already own property. Today’s post is a little sumthin’ sumthin’ for people on both sides of the white picket fence. As far as my own situation, I’m a renter. I live in a nice 2 family house in a predominantly white and yuppie neighborhood with tall trees and a helluva lot of mosquitoes. A lot of people I associate with regularly, including most of my closest friends, are renting right now. Most of us are content with our current situations for the short term, particularly given the nature of the economy. It’s just a good thing to be employed and/or have a roof over our heads. It’s interestin’ though.
What’s Interesting?
Well maybe it’s always been this way, but it seems nowadays that owning property is the hot thing in the streets. It could simply be due to the fact that we’re in a recession, interest rates are low, and there seem to be all sorts of perks for people who have the credit to purchase a home. I remember a few years back when it was the cool to say you have a nice car and nice apartment in a building or neighborhood with a lot of amenities. But nowadays as I speak to more people, it seems like owning a house or condo is the next step in asserting one’s level of success. I’ve had dudes tell me about some independent woman they know who owns a house, and I’ve had women tell me about the grown ass man they met who owns a nice condo in the hills. I’ve also had both sexes tell me that I need to start lookin’ at properties and prepare to “step my game up”.
Step my game up though? I may be no Suzie Orman (aside from the anatomical differences), but I know enough that renting is what makes sense for me right now. I’m content to live where I live, but I’m certainly not complacent about it. In reality, I probably won’t even be lookin’ at owning a home for the next 5 years when hopefully I’ll be able to determine where it is that I want to establish myself for the long haul. I live in Boston now. I don’t hate the city, but I’m pretty sure I won’t spend the rest of my life here. I’m also pretty sure that within the next 5 years I could make a significant career change that’s gonna require me to move to a new city in a different part of the country. So again I ask these folks who try to advise me, what’s the effin’ rush? Owning property isn’t the end all be all.
I have an example. Let’s take my upstairs neighbors who are both doctors. I’ve mentioned them before. They’re the ones who flooded my apartment. They have a daughter and drive durable cars. Now when I say durable, I’m talkin’ about Subaru and not Lexus. They’ve been living in their apartment for years paying rent to the landlord. They probably have more than $1mil saved up between the both of them, but they don’t own property—at least from what I can tell. Does that take away from their status or make them any less financially savvy? I think not. One of them very well could be related to Suzie Orman now that I think about it, but I digress.
I have another example. Let’s look at people who were victims of predatory lending practices who have lost their homes and watched their credit scores plummet. Within this group, I’m sure there are a good number of people who had no business owning a home in the first place but couldn’t help but pursue the American Dream only to watch it become the American Nightmare. I’d also be willing to bet that a good number of us know someone that bought a house or condo within the last 1-3 years and think that the person(s) made a rash and bad decision. I refuse to be “that guy” in the name of “moving on up”. I’ll keep pluggin’ along in my apartment until I’m confident that I’m ready to take on the responsibility of my own home. Why? Because that’s the mature thing to do.
I do have some questions for y’all though. For folks that own homes/property, what inspired or led you to go through with it? Do you still think you made the right decision and would you change anything? For those that don’t own property, what are your reasons and when do you plan to start givin’ it serious consideration? And lastly, does anybody have stories of folks that rashly bought property and are now paying the price (pun intended)? I’m just curious.
The only property I own is threewaystotakeit.com,
70 Responses to “I’m a Grown Ass Man and I Rent My Place”
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Great Insight Mr. Jackson!
My second boss (yeah, I have a few) approaches me every couple weeks on something that he saw on the “news” about interest rates being low and the cost of housing being super low. “It’s the perfect time to buy!” he says. He then talks about how he and his wife (a licensed real estate agent) were talking about who do they know in a situation to buy a home right now and the answer is always… Still Water (the 23 year old HR Rep)!
Each time, I point out the fact that I am considered a “Relocatable Hire” meaning that I am willing to move anywhere at the drop of a hat. Over the past recession infested year, relocation has been all but frozen and the major determining factor of whether or not you are going to get that big fat promotion in Denver, or HQ or DC?… It isn’t your past performance, or you the promise that you will do big things, its whether or not you own or rent a home.
I ain’t sayin its fair, but its real.
“They’ve been living in their apartment for years paying rent to the landlord. They probably have more than $1mil saved up between the both of them, but they don’t own property—at least from what I can tell.”
What I tend to omit from Mr. Second Bossman is that I had to fund my entire Ivy League education in one big fat private loan and if I don’t get those promos anytime soon… I will be paying it off until I am 50. That’s the same thing with most people with lucrative skilled jobs. We see “doctor” “lawyer” or “president” but to the people in the know, it means being a quarter of a mil in debt and having effed up credit until your babies are in college.
I made the decision to go with a degree that speaks for itself. The tradeoff? I don’t have to mow the lawn, worry about home insurance, or expensive maintenance. Heck, I don’t even change my own lightbulbs. I am free as a bird and can pick up and move out of this hellhole whenever I am asked.
At this point in my life… that is exactly what I want.
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Nyela Goodness Reply:
September 2nd, 2009 at 9:13 am
“I am willing to move anywhere at the drop of a hat.”
This is where I am right now. Yes, I do want to own a home, but I will not do so until I’ve reached a stable point in my career. Right now, I’m willing to go anywhere, at any time, for the right position…well, maybe not anywhere. Still, owning a home is not the move for someone as locationally unstable as I.
A friend of mine graduated from school a couple years ago and bought a house right out of college. He just got a great opportunity, with a different company, and has to move. Now, he’s going through the whole process of trying to find tenants so he can Landlord from a city at least three hours away. This, all while working for a job that will demand between 60-70 hours of his life a week. While I commend him for his grind, No.Thanks.
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ASmith Reply:
September 2nd, 2009 at 9:16 am
A guy I know graduated from college and got a nice consulting gig right away that requires a lot of travel. He hasn’t so much as paid rent in the 2 years since he’s graduated. He’s been living out of a suitcase for the most part and all his other stuff is at his parent’s home.
I was disappointed to hear that he spent a lot of the money he was able to save on a tricked out SUV. Nice car, but there will come a point where the traveling is old and he decides to buy a house; he’ll wish he had that money then.
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Anna Nimous Reply:
September 2nd, 2009 at 9:25 am
Your friend needs to find a property management company. They’ll take some of the dough, but the headaches end.
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Seattle Washington Reply:
September 2nd, 2009 at 11:04 am
I feel you. I grew up a nomad. We moved so many times within Queens and then a few times out of NYC altogether. Not to mention I moved a couple times as soon as I was legally of age. Shit, I moved 4 times just within Boston. I plan on moving out of this city soon and probably a couple more times after that.
No point in buying a home when I can’t manage to settle down for more than 2-3 yrs at a time.
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Buying a home to make an impression? for really?
In a couple of weeks I start my Homebuyers 101 course, but I don’t plan on buying in the immediate future, I’m using it to get a sense of where I should want to be financially when I do buy and to learn about the resources available to me from the city and state. From there I’ll think about a setting a timeline for myself.
It wasn’t too long ago I decided that I would probably be staying where I am now, so I couldn’t even think about buying anything earlier. I also expect my financial situation to continue to improve, so I’m in no hurry. I’m really enjoying building up my savings accounts at the moment.
Renting works just fine right now, especially as Still Water says not having to be responsible for the lawn, maintenance and shoveling snow (eeeww).
And sure I’m impressed by a homeowner who can actually afford that and is proud of it, but I am equally impressed by someone who knows they are not ready for that step and is conscious of the responsibility it puts on their shoulders.
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Brookland's OWn Reply:
September 2nd, 2009 at 8:16 am
“In a couple of weeks I start my Homebuyers 101 course, but I don’t plan on buying in the immediate future, I’m using it to get a sense of where I should want to be financially when I do buy and to learn about the resources available to me from the city and state. From there I’ll think about a setting a timeline for myself.”
Yo, that Homebuyers course is GENIUS! You’ve inspired me to sign up for one. Just thought i’d share that. But renting is cool w/me for now also. Everybody trying to “LIVE THE AMERICAN DREAM” but don’t realize that just because they’re American or live in America it doesn’t necessarily have to be their dream. I feel as though if you’re going own property, then cool, however if you choose not to, then cool too. My parents still rent currently but always made sure our family was straight and the bills were paid and as long as you can provide for yourself and your fam, I don’t think whether you rent or own should really matter, especially being that the GOV can use eminent domain whenever they feel the need and we’re only in this joint known as life temporarily. LIVA LA VIDA LOCA!
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Slim Jackson Reply:
September 2nd, 2009 at 8:36 am
“Buying a home to make an impression? for really?”
Yes. People do this. People buy cars and 70 inch televisions for the same reasons, so what would stop this recklessness from expanding into the property owner market?
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Reecie Reply:
September 2nd, 2009 at 9:22 am
I see it as well in the southeast.
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deN.I.A.l is not a river in Egypt Reply:
September 2nd, 2009 at 9:38 am
me too.
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Tatica Reply:
September 2nd, 2009 at 9:44 am
Maybe I shouldn’t be surprised, but I kinda am and I don’t want to believe people do this. Let me be in denial ok?
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I always like to point out that it’s people who rushed to buy homes before they were ready/purchased homes they couldn’t afford but really wanted who then defaulted on those mortgatges causing an unfortunate domino effect that crumbled some greedy rich people’s get rich scheme that is in part to blame for our current recession (note: I’m not at all blaming individuals who truly were misled by banks; however, there is some responsibility to be had when you start talking about buying a $200,000 home on a $40,000/yr salary).
If anything, this recession is not encouraging me to purchase anything, but rather to take the necessary steps to one day be in a place where I can buy property. That may not be until interest rates are high as hell again, but I’ll be able to make my monthly payment with no problem and that’ll be that. I’m definitely finding myself reading up more and homeownership than I think I would have sans this horrible recession, but I’m in no mood to buy property just to buy property… that’ll land you in the poor house for real.
I haven’t had anyone pressure me into it and if anyone tries, I’ma go ahead and point to the ridiculous student loans I’m gonna be taking out next year to fund my graduate school education as all the reason I need to not try to catch up with the Joneses.
But if I’m still renting where I live in 20 years and I’ve been renting for the previous 10 with no change in sight, somebody slap the ish out of me, please.
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For Serious??! It took me 6 years to decide what kind of car I wanted to buy, didn’t own one until I was 26, not because I didn’t have the money but because the money looked so good right where it was sitting in my bank account! Man it hurt cutting that cashiers check. I get hives thinking about buying a house…no thank you, I can wait, especially with me going back to school. There are more places to invest than in a house.
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Slim Jackson Reply:
September 2nd, 2009 at 8:53 am
Are folks really surprised about this mentality? I see it all the time. This is interesting.
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Smiley Face Reply:
September 2nd, 2009 at 9:11 am
No..I wasn’t asking a question really. More rhetorical than anything. Maybe because I’m really tight on things that I can’t see an immediate return on (read cheap), I don’t understand spending money all willy nilly especially on a house that you’re locked into for most of your life…nope sorry Charlie.
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CHeeKZ Reply:
September 2nd, 2009 at 9:38 am
yeah I’m riding smiley face (no cunniligus)
I love the way my money looks in my bank account. I got a group stylish freinds who stay popping tags.. one of them once said “you don’t buy clothes for the way they look but the way they make you feel when you have them own.” That is how I feel about my bank account, not some silly cotton. I feel good knowing that I have funds on stash even though people can’t see them with what I wear, what I drive or where I live.
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Tatica Reply:
September 2nd, 2009 at 9:53 am
Co-sign
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Great post, Slim.
Purchasing a home as a status symbol is a real problem, especially if you aren’t in the financial position to buy a home and take care of it. I think a lot of people fail to realize that it takes money to actually take care of a home along with your monthly mortgage payments.
I choose to rent now b/c I know I am not settled in my career here in NC. In the next 2 years, I do not expect to be in Raleigh, so why would I purchase a home now? Renting works for me, and it gives me the flexibility to be able to relocate at the drop of a hat if the job requires it. I have a co-worker who just moved here, and she is still trying to sell her home in VA. I do not want that stress hanging over me when I’m offered a new position in a new city.
I want to own eventually, and I’m making the appropriate financial steps for homeownership in the near(<5 years) future.
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Toni Reply:
September 2nd, 2009 at 1:08 pm
“I think a lot of people fail to realize that it takes money to actually take care of a home along with your monthly mortgage payments.”
Totally agree. I just got a new job but it still doesn’t pay that much. It takes a good minute to make any decent money as a reporter.
“I choose to rent now b/c I know I am not settled in my career here in NC. In the next 2 years, I do not expect to be in Raleigh, so why would I purchase a home now?”
Renting is usualy the best choice until you moved to your final destination (and I don’t mean Heaven or Hell). Each job is a stepping stone to one day working for the big boys. I’m not going to buy a house and then can’t sell it when the NY Times comes a calling.
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Yeah, add me to the people who are surprised that people are buying houses just to impress. WDDDA – Real Housewives of Atlanta?? I am getting ready for homeownership because I’m tired of sending $14K a year down a black hole. A blaaaackk hooooole! lol! There are so many options out there, and you don’t have to tie yourself to a house just because you bought it. Da Man (who is much smarter with his money and investments than I) purchased a house in AZ when he was stationed there. When they moved him here he simply began renting the old place out through a property management company. Most likely, he’ll never live in it again, but it’s close to a military base and a college. It’s part of his retirement plan so the current dip in home values isn’t hurting him. But – he’s one of those people who is good with money and educated himself prior to making any moves.
I think that homeownership is more beneficial than renting – but you have to be ready for the responsibility or you’ll lose big. There was a lot of pressure to buy during the first housing boom, but I just wasn’t ready for it and I knew it. Now I’m thankful that I missed that boat. This is a much better time to buy than the last time because regulations are tighter and “exotic loans” aren’t being pushed on people. But there are still plenty of snakes in the grass waiting for you to make a move, so education and a good realtor are key.
The home ownership courses are where it’s at – not only do they give you good info, you can get a certificate that makes you eligible for federal funds towards your down payment and closing costs.
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great topic. I do not own, here’s why: I moved away and figured I’d only be here couple years. Its been a couple and I’m still in FL. LOL. Money is good and quality of life is as well, so that’s all that matters to me. I do not plan to stay here forever, so it makes no sense for ME to own.
I have a friend that tried to push ownership down my throat when I was in the process of moving out of my parents house in VA, before I got the job offer to move. Had I followed her advice I would’ve been stuck trying to get a house off my hands. Instead, I just lost a security deposit. Its so much easier to up and go without all that.
And I live alone so I’d probably do a condo–I like not being responsible for yard work or any other maintenance right now. I’ll wait until I have a husband for that (joking..but serious). I mentioned on here before how growing up my mom would be out there cutting the grass and cleaning gutters. Not me, son. I’ll live in a condo or at most townhome if its just me.
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ASmith Reply:
September 2nd, 2009 at 9:23 am
I’m thinking my first major purchase will be a condo, as well. My only concern is all the rules that typically come along with it, but I imagine I’ll survive.
My cousin has long told me — there are a lot of hidden, continuous, fees that come with homeownership that they don’t tell you about.
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Smiley Face Reply:
September 2nd, 2009 at 9:52 am
“My cousin has long told me — there are a lot of hidden, continuous, fees that come with homeownership that they don’t tell you about.”
ain’t that the truth!!! They don’t tell you about fixing the leaky roof, how property tax rates fluctuate, how someone can buy your house even if you pay the mortgage but are late on property taxes..no sir, they don’t tell you those good things, lol.
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Tatica Reply:
September 2nd, 2009 at 10:06 am
Oh yeah, the cost of buying and the cost of owning are really two seperate beasts.
People are trying to sucker you into something and leave something out…kids are really wonderful and hardly any work, you should have some!
Hey this isn’t dirty it’s art, now smile for the camera!
Hey you should try this apple!
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ASmith Reply:
September 2nd, 2009 at 11:04 am
LMAO @ “Hey you should try this apple!”
But you speak truth; people aren’t as forthcoming about how much it truly costs to be a homeowner. All the more reason to get the money ducks in a row first.
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i also rent a house. i don’t own because:
1. i’m still a student so that means i’m poor. lol
2. the city i live in currently is not where i will be settling once i graduate.
once i move back home i will still probably rent until i build a nice nestegg then i will probably look into buying a town home. i would try to get a condo but i’ve heard they are difficult to sell.
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Reecie Reply:
September 2nd, 2009 at 9:35 am
yeah they are difficult to sell, I forgot to mention that.
I remember reading/hearing something not too long ago about home ownership like its funny how people convince you that they “own” a home with a 30 year mortgage. LOL.
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This topic is right on the money! I’m a renter and I have friends who’ve bought property. Every now and then, someone will ask me why I don’t have any property or when I’m gonna buy, and then they proceed to tell me why the market is so lucrative. My simple answers to them are:
1) Though I have a nice paying job, it’s not stable (they’re forever firing someone since our merger).
2) Though interest rates are low, the economy sucks! Most don’t even qualify for a loan unless they have MEGA-DOUGH saved up.
3) I’m not trying to be one of those people who’ve been suckered into a bad loan. It’s easy to get out of a lease w/o messing up your credit; not so easy trying to unload property that you own.
Right now, I’d rather rent and have the next person deal with those issues than take on that problems. It doesn’t make me any less grown – I have a nice job, two cars (one paid off that I gave to mom), I pay my own bills (though I’m not too independent to wish I didn’t have help every now and again), I have no children…..Basically, not to pat myself on the back, but I think I’m doing pretty well.
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Slim Jackson Reply:
September 2nd, 2009 at 11:19 am
Do you have a boo?
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I’m a proud homeowner. I made the decision to purchase a home after spending about 7 years renting. Thankfully, during that time the housing boom came and went b/c I could’ve stupidly purchased a house to keep up with Jones’ (like some of my friends did) and they are so underwater on their homes that their parents have to help them pay the bill. So, rarely would I impress upon someone to buy a house/condo. The best time to buy is when you’re ready and are sure you’re going to live somewhere for a few years.
That said, the doctors in your example are fools. At the type of salary that they must be bringing in, not having a home (assuming they dont have one and just rent it out) means they’re being taxed to oblivion. You reach a point, income-wise, where you will actually SAVE money by owning a home should you get one w/i your means.
So in answer to your questions, I bought b/c I was sick of renting, sick of people living above/below me, & the housing crash made affording a home viable. I’m 1000% positive I made the right decision and there’s only thing I would change. Make sure your realtor isnt sloppy or just a complete dumbass. Thank goodness the wife of mine was sharp b/c he wasnt and I only stuck with him b/c he was a friend of a friend. Talk about a guy that married up. SMH.
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Reina Reply:
September 2nd, 2009 at 10:47 am
I bought my first place (condo) two years ago solely because the owner I was renting from offered me a deal to which I couldn’t say no. You really don’t walk away from owning property in NYC if it’s affordable. And as and1 said, outside of property taxes, it did immediately lower the money I owe to the government.
Outside of that opportunity, I probably wouldn’t have bought property until I knew exactly where I was going to settle down. As of today, I still don’t know where my career is going to take me, and I like the idea of just being able to get up and go. Owning a home is a huge responsibility financially & mentally. I wouldn’t recommend it to anyone in their 20s.
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I used to own a home, which we lost (i.e. Foreclosure) durring my divorce, so currently I am living in an apartment and am SO glad not to be saddled with that money pit of a house at this point in my life & at this point in the economy. Houses are good when you’ve reached a stable plateau in your life, which is not typically when you’re single and/or at the quarter life stage.
This is what happens: you have “good man” meets “independent woman” and they both, per the markers of “success”, own their own homes. They decide to get married. But not they have to worry about selling one of the homes (probably necessary to be able to afford to get married in the first place. Who the heck is buying houses in this economy?? What was once a plus is now a big pain in the arse.
While homeownership is ideal, you can’t knock flexibility right now. Its only a good thing if it WORKS for you & your current circumstances. Real estate isn’t appreciating (much) right now so unless you’re looking super ong term investment-wise, it may not be the best move. The ability to move & react quickly may be the better asset right now.
And, as a single woman, I LOVE not having to worry about repairs and maintenance, both from a cost, conveinence and time perspective. When my furnace went out in my house, we were ass out. Flooding foyer from a busted pipe….screwed. Stove broken….aww shit. I’m just not ready, personally or financially, to deal with that.
I’m not mad at the single man who doesn’t own a house. That means maybe one day we can buy one we BOTH want together.
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Slim Jackson Reply:
September 2nd, 2009 at 11:19 am
Great perspective. Thanks for the contribution today!
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Ive always wanted to live in a home rather than rent just because to me houses > apartments. Once I got in to the real world and started paying bills, my perspective changed. I dont see myself moving out of NYC anytime soon, if ever, and my job doesnt have me travellin constantly.
Im trying to save up now to hit the market next year, but you guys reiterated my positions on why I’m hesitant to pull the trigger. My credit is excellent now adn Id hate to have it go to shyte over some loan.
Im also looking into baggin a foreclosed home. Some of them spots are going for 90k! Excellent homes too. What do you guys think about that prospect?
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ASmith Reply:
September 2nd, 2009 at 10:23 am
My mom did that. Turned out to be a pretty shweet deal. She bought a home that had been foreclosed on at a little less than $100,000, spent about 20Gs on fixing it up (she got a lot of deals on all that, using friends and such…) and now the house is valued at over $170,000 and as we all know, property only increases in value.
I support people who buy foreclosed homes, but I emphasize being prepared to funnel money into it right away; often, especially with what recently happened in the house market, they are homes that people walked away from and so they may be in some serious disrepair. In my mom’s case, she bought the home in late 2006 and it wasn’t ready to move-in until mid 2007 and even then there was still things she was working on.
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Anonymous Reply:
October 6th, 2009 at 1:02 pm
Clearly property doesn’t only increase in value, thus the current housing market.
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and1grad Reply:
September 2nd, 2009 at 10:50 am
I think foreclosed homes are a great way to go if you can find a quality one. Mine was a foreclosed one that wound up being better than the new home I was already prepared to buy. I wasnt interested in taking on a reclamation project but if you are, it shouldnt be too difficult to find a decent foreclosure.
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Streetztalk Reply:
September 2nd, 2009 at 10:54 am
i definitely cant handle a “fixer upper” now. Shoot I can live with certain stuff “needing repair” for a little while. We all did it growin up ya dig? lol
We’ll see
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Slim Jackson Reply:
September 2nd, 2009 at 11:02 am
Some of us still live with stuff “needing repair”.lol. Speaking of which, I need to call the landlord about this jiggly toilet handle.
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JG* Reply:
September 3rd, 2009 at 11:02 am
I live in a foreclosed home now. My roomie bought it for 50k in ATL. It’s inside the perimeter, but in Bankhead. Horrible move for him. He’ll never be able to sell it again, the two other “nice” homes beside us are now section 8. It’s horrid. He had to put 20k in it right away. While the home is beautiful, it was a bad bad move. Poor investment. The area will never be gentrified and no reasonable person that would pay on time would want to live there. Oh and we were robbed 3 weeks ago. Got all my shit. LOL
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“step my game up”
Slim please tell me who gave you this horrible adivce so I can properly tea-bag them. Some people just run their mouth about what they think without knowing what in the world they are chatting about…
A)No one who isn’t a millionaire has any right to tell you to step your game up. Unless they are building the condo they are small potatoes.
B)A home is a good investment/ purchase compared to other material possession… its still a material possession. You would be better off getting a degree like Still Water Suggested or getting your stock game up b/c the market is coming back.
C) I got a well to do friend. He was giving me finicial advice and I told him I wanted to invest in real estate… HE LAUGHED IN MY FACE. What he said is important: “Once you see black or poor people get into a business.. don’t get into that business! The market is becoming crowded and its only a bubble. Watch what industry college grads are getting jobs in … and watch where white men are investing there money.” There is no one I know who has bank like this kid… I would stick to his advice. Having a home as your nest egg went from being the bare minimum to being a trendy investment.
C)Black people need to stop with this material binge we are on. I like being smart way more than I like this Armani tie that I got on (it was a gift.. I would never buy something like that). Defining yourself with what you own is so high school. I bet you 50 recession dollars (4.99) that slims apt is nicer than the house of the person who made that comment to him.
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ASmith Reply:
September 2nd, 2009 at 11:15 am
C)Black people need to stop with this material binge we are on. I like being smart way more than I like this Armani tie that I got on
Can we put it on a shirt? Let’s talk about it.
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Two things for you family:
1.) Let’s take a step back from the owning conversation for a sec. Being grown is doing your own thing without comparing yourself to others. Not owning property or any of the other superficial things people use to make it seem that they are.
Run your own race. If I listened to some people telling me to “step my game up” I wouldn’t be doing well right now. I’ve got awhile to go, but I’m confident that I’m going to be #1 because I’m not worried about the folks running along side of me. My Pops told me something that still sticks with me to this day, “I’m too old to care what other people think.”
2.) Any true investor will tell you that a home is not an investment. It’s possibly the worst investment. Whoever told you that you need to buy needs to read up on some Napoleon Hill or grab an audio copy of “Rich Dad, Poor Dad”.
This message brought to you by one of the soon to be Titans of Industry.
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Slim Jackson Reply:
September 2nd, 2009 at 11:18 am
Read Rich Dad, Poor Dad back in high school coincidentally. Good stuff I must say. Good stuff. I’d also suggest The 4 Hour Workweek. Another good jawn.
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Streetztalk Reply:
September 2nd, 2009 at 11:19 am
Neve read rich dad. Read 4 hr workweek. Its good for managing the time we waste, but that 4 hr isnt practical for a lot of professions. Still a good read
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Slim Jackson Reply:
September 2nd, 2009 at 11:21 am
Not directly practical for a lot of professions, but you can loosely apply the thought process elsewhere. If I tried to outsource my job, I wouldn’t have one.lol.
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RightCoastLexSteele, Owna Fi Di Yaaad Dem Reply:
September 2nd, 2009 at 11:35 am
Yea, the stepping up of one’s game argument is ludacris. Anything that you arent making money from is a LIABILITY. Unless you’re renting a portion of your property, it’s all liability, one which you should be ready to assume once you sign the line.
I stopped trying to keep up w/ the Jones’s in college when I realized cats were living off credit cards and refund checks.
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Tatica Reply:
September 2nd, 2009 at 11:43 am
“Run your own race”
My official life motto.
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Ms. Cherry Reply:
September 2nd, 2009 at 2:05 pm
Speak on it…
My besty bought a house at 22 and felt rather accomplished for about 5mins… then she thought about it and decided that just because she found herself in the position to buy a house at the moment didn’t mean she then needed to buy/own one. Owning a home seriously cut into her ability to move freely about the country on a whim. After a little over a year she decided that “stepping her game up” was holding her back and sold the house.
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As a homeowner, I’d say strive for homeownership if it seems feasible. I live in upstate NY and in certain places, houses are cheaper than water. I closed on 2 cribs on the same lot last year for 100K, moved some section 8 folks up in one crib and now the city pays 2/3 of my mortgage…sweeeeeeeeeet! That being said, you probably couldnt buy in an decent apt in NYC for less than 150K, and that’s an apt, not a condo or a house. I suppose it serves the same purpose creditwise, but if I’m paying a mortgage, I’ma need a yard so I can grill and act ignant with my hybrids. (Get at me, Seattle.)
I’d say to cop a crib for the simple fact that putting money towards your mortgage benefits you more than towards rent. Some people that you rent from may report your good behavior to the proper authorities, but in most cases, your just paying rent to a guy/lady that owns a place and needs someone to stay there to cover his loan w/ the bank.
Even if you don’t plan to stay in the area you live in, analyze the situation carefully before deciding to cop or not to cop. By no stretch of the imagination am I looking to stay where I am permanently, but this place is ripe for development in the next few years, and I’m hoping my property value goes up so I can recoup that 25K downpayment.
Streetz…foreclosed is definitely the way to go…you can get something out in LI way under market value and the mortgage will be very managable and you can always rent/lease to people and kick them out when you’re ready to use the place as a weekend rampin shop…check out foreclosure.com. Very useful website, you can look up listings everywhere in America including Puerto Rico. Without being a member, you can see very basic info, so depending on how deep you wanna go with it, the $300/yr membership may or may not be worth it to you. I had a mole working at a real estate spot a while back and had access to the members only site and the sh*t is bonkers. So if you really looking to invest in a property, or buy something w/ a group of friends, it’s worth it.
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Streetztalk Reply:
September 2nd, 2009 at 11:27 am
No doubt,
So..I meannnnnnn…. If a brother was tryin to get that members only hookup [||] I dont gotta be part of “The Team’ to get it right?
I’ll “set out a hop” and have the chicken and liqs for the afterparty if I got 2. Holla!
lol
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RightCoastLexSteele, Owna Fi Di Yaaad Dem Reply:
September 2nd, 2009 at 11:39 am
If I still had it, I’d pay it forward, but the firm my mole was working at disbanded and the owner didnt renew the subscription. I was tempted to renew it for him…of course without his knowledge, but I’m sure that breaks some sort of law and I’m too sexy for jail. I’ve talked w/ a few heads about everyone throwing down and splitting the cost of a membership, but sometimes in financial matters too many crooks spoil the pot. Yep, crooks.
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I’m surprised to see so many of you co-signing and agreeing that home ownership isn’t a smart decision.
It’s about building personal wealth. Sure, do it when you can afford to, but you certainly should do it. Just as you pay into your 401k or IRA or savings account.
I pursued home ownership after I realized that I paid my landlord over $50,000 cash in rent. That’s $50,000 missed out in equity. That’s $50,000 that could have provided some tax write-offs. That’s $50,000 that paid for my landlord’s month-long cruise around the Greek islands. That’s $50,000 out of my own pocket.
The readers of TWTTI are too intelligent to spout the naivete and ignorance that I’ve seen today.
Clean up your credit, research the benefits of home ownership and make up your mind independent of this blog. Sure the market sucks for some right now, but guess what. Not everyone is in danger of losing their job. And the rates are spectacular.
I had more cash when I rented, but as a homeowner I have more wealth.
Happy Home Owner
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Tatica Reply:
September 2nd, 2009 at 11:46 am
The point I think is not that homeownership itself isn’t a smart decision, but that homeownership when you’re not ready and/or informed, or doing it as a status marking, is NOT smart.
Everything is isn’t for everyone, you gotta do what works for your current situation.
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Slim Jackson Reply:
September 2nd, 2009 at 11:51 am
Tatica pretty much said what I was gonna say. However, I do appreciate the perspective. It sounds as if you’re doing well, and I was hoping that I would catch some people in your situation for today’s discussion.
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RightCoastLexSteele, Owna Fi Di Yaaad Dem Reply:
September 2nd, 2009 at 11:55 am
I wouldnt call it ignorance so much as the fear of the unknown. I felt the same way when I rented, and outside of the huge downpayment the bank asked for and the money spent on necessary repairs once I closed, I feel good about it. But like someone said earlier, you can’t buy into people’s opinions either way, cuz everyone’s situation is different. If you live in NYC, paying crazy stacks a month for a 500K crib in the Bronx might not be the best move, no matter what the market looks like.
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Smiley Face Reply:
September 2nd, 2009 at 12:40 pm
I don’t even think it’s fear. It’s about making a sound investment when you are ready or capable to make one, watching carefully for market trends, going down the courthouse to see what house is being foreclosed (they have them in the paper, too). Basically being smart about where you put your money.
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CHeeKZ Reply:
September 2nd, 2009 at 12:52 pm
Shots Fired….
1)401K is the best saving tools ONLY IF YOU ARE USING THE FUNDS TO RETIRE. And no one reading this blog should put money into their IRA. You should start putting money into an IRA when you lose your sex drive (40s).. its the lowest pay out and the highest restrictions on your money.
2)I have no idea why your landlord was able to rape you like that… but that could have just meant you were a bad renter. Like and and Seattle pointed out.. owning a home isn’t the best way to create wealth, its only better than wasting money. Don’t get gassed by interest rates, the flip for your property minus the interest BARELY equal what your money would have done in buying something now and avoiding inflation. Add on closing cost and taxes.. now you have to wait 5 years to bring in value. Homey if you had bought Citibank when it was 98 cents a share (and up 1.32% today) you would have made enough to buy a greek island for your landlord.
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Smiley Face Reply:
September 2nd, 2009 at 1:58 pm
*Le sigh*…talk to me now! That’s gold right there!
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Personally there’s absolutely no reason for me to buy any type of property anytime soon.
I’m blessed to live in a city (DC) where my family has resided for nearly 6 generations. When my mom’s parents passed, my parents took ownership of the house. They separated the house into two units and used to rent them out. Now that my sister and I are adults we split the mortgage and live in the two units.
While I HATE (I truly mean that) living 10 steps away from my older sibling, I know that I’m only paying 40% of what most other people pay for rent and I’m in a great location one block from the train. Every time I’ve seriously considered moving out I just feel like it’s a bad fiscal decision. Paying rent here puts money into a property that I will most likely inherit.
While I want to move to NYC before the close of the year, I know long term, if I get married and have kids I’d probably want to settle back in this area. The house I live in now is in an area where property values are shooting up and there’s lots of
2520s moving indevelopment. My grandmother is in her mid 80s and is itching to move into a senior community. Her house is also located in a up and coming neighborhood in walking distance to the train. My dad lives in a suburb of DC and wants to move where I am when I leave but rent out his house… Basically I know eventually I’ll end up with one of the three houses.That being said, I don’t know if I’ll ever actually buy a house. If anything I would like to pick up one of the row houses attached to the one I live in now so we can expand the property.
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Smiley Face Reply:
September 2nd, 2009 at 2:06 pm
Now you see Ms Cherry that’s what I’m talking about! I wish more families would have done what yours did.
I smh at black folk (especially in “Capitol Hill” the 2520 version of S.E.) who ‘give up’ their houses and then turn around and get mad at 2520′s for buying cheap and selling high all because they were not informed or failed to learn of what they could do with that property.
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ASmith Reply:
September 2nd, 2009 at 2:25 pm
I smh at black folk (especially in “Capitol Hill” the 2520 version of S.E.) who ‘give up’ their houses and then turn around and get mad at 2520’s for buying cheap and selling high all because they were not informed or failed to learn of what they could do with that property.
I’m seeing it here in DC (obvi) and I recognized it as soon as I saw it because it’s happening in the city I’m from, as it has for decades. One of the most prestigious places you can live in my hometown is on top of one of our mountains. All the rich 2520s live up there and the “po’ black folk” live in the valley. These days, those po’ black folk wouldn’t be caught dead (actually, that’s what they fear) up on the mountain, but back in the day that’s where the black folks lived, until the 2520s came and told them ridiculous things like the mountain would cave in and got them to sell their properties at pennies on the dollar. All the po’ black folks in the valley used to be the black folk up on the mountain living on highly valued land.
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Ms. Cherry Reply:
September 2nd, 2009 at 2:37 pm
I think the worst 2520 take-over is Georgetown/Foggy Bottom. That’s where my grandmother grew up. Before slavery ended (yes I’m taking it way back) the Town of George (later known as Georgetown) was actually a Black area; at least down near the water. There was a native american settlement down there and so a lot of the freed slaves settled there as well. There used to be a paper mill in Gtown and so the air by the water and over in Foggy Bottom was really polluted so 2520s wouldn’t live there. When the paper mill closed in the 50s they came in and started buying up property. Nowadays you’d never know Black people lived anywhere near Gtown let alone for decades. The house my grandmother grew up in was a block up from the Trader Joe’s over there and it’s crazy to think that those huge houses over there were all filled w/ Black families. It’s a damn shame.
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ASmith Reply:
September 2nd, 2009 at 3:07 pm
Definitely a tragedy. Black folks do not live in Georgetown…
The other thing I notice is while black folks have been chasing the 2520s out to the suburbs, the 2520s are busy moving back into the homes in the cities we’re leaving. The suburbs are gonna be all black in a couple of decades and have folks thinking it was always like that. Let enough cities start following Atlanta’s lead and tearing down projects. It will ripple.
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Ms. Cherry Reply:
September 2nd, 2009 at 2:26 pm
It’s crazy over here… I don’t understand how anyone could sell their property in this neighborhood. There are 1bdrm condos popping up in the place of halfway houses and crack houses for upwards of 300k. I wish I would sell.
My grandmother lives over by Fort Totten and my sister keeps trying to get her to sell her house. I told her that’s the worst idea ever. The house is paid for, she might as well rent it out to some nice 2520s who go to Catholic and just keep the house in the family.
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PSHH!!!
I’M FOREVER A RENTER!!!!!!!!
My house is always a home, no matter who signs off on the mortgage!!
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MaPockets Reply:
September 2nd, 2009 at 10:29 pm
well not forever…but at least until I keep my behind in the same place and think about settling down. I own/financed versus leased my car…and I’m still not all that crazy about THAT decision LOL
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I’m with ya, dude. I rent too. You gotta make it do what it do, for you.
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We’ve gotten the lecture a million times. We look at people and laugh… We’ve lived in 4 states in 6 years… and as soon as I start school we’ll probably move yet again, what about this says “you should buy a house?”
There’s a time and place for everything, right now and right here ain’t it.
However, I agree that it can be a good investment, and once I hit the point where half my check is going to the gov because I’ve made it into a high tax bracket and don’t have any children to decrease my tax burden, THEN we try to sit down and stay put.
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