# Why Am I Renting An Apartment?



## Lon (Aug 25, 2015)

I have been renting a two bed two bath apartment for a little more than a year now. It's a age 55 and older facility with pool, spa and other amenities. But last night I got to thinking that with interest rates as low as they are why am I paying $1,335 a month to rent. So I am off to see some 2 bed 2 bath condos with all the bells and whistles.  EXCITING!!


----------



## hollydolly (Aug 25, 2015)

Oh yes definitely exciting, let us  know how you get on..


----------



## Shalimar (Aug 25, 2015)

Go upscale Lon, you will love it!


----------



## Loosey (Aug 25, 2015)

Good idea!  I hope you'll find a perfect fit.


----------



## AZ Jim (Aug 25, 2015)

Think of all the money you donated to the landlord....I rented one time a few months between Mrs. Wrong and Mrs. Right.  That was 45 years ago....pay mortgage,  pay taxes, add upkeep then when you sell at the new value you will be surprised at how little it cost you to have lived there.....if any.  I have actually sold and found I MADE money every month I lived there.


----------



## Shalimar (Aug 25, 2015)

I am confused Jim. Are you saying it is cheaper to rent or to buy?


----------



## AZ Jim (Aug 25, 2015)

Renting is for those who for whatever cannot buy.  Owning something is always better when it comes to homes.  My first home (and there have been many) I bought on my GI loan for $9.5 K.


----------



## Lon (Aug 25, 2015)

I have always owned one or more homes and my current rental apartment was a convenience when I sold my home last year and moved to my present city. However, now that I am a single Octogenarian it takes some thought as to just what type and kind of living arrangement will suit my present needs. A nice condo in a good location with primarily older adults as neighbors seems to be the way to go A single story is a must.


----------



## AZ Jim (Aug 25, 2015)

Lon said:


> I have always owned one or more homes and my current rental apartment was a convenience when I sold my home last year and moved to my present city. However, now that I am a single Octogenarian it takes some thought as to just what type and kind of living arrangement will suit my present needs. A nice condo in a good location with primarily older adults as neighbors seems to be the way to go A single story is a must.


Don't like elevators?  I understand stairs.


----------



## SifuPhil (Aug 25, 2015)

AZ Jim said:


> Think of all the money you donated to the landlord....I rented one time a few months between Mrs. Wrong and Mrs. Right.  That was 45 years ago....pay mortgage,  pay taxes, add upkeep then when you sell at the new value you will be surprised at how little it cost you to have lived there.....if any.  I have actually sold and found I MADE money every month I lived there.



What about those folks who found themselves "underwater" after the last round of financial upheaval? What about all those repos and foreclosures?


----------



## RadishRose (Aug 25, 2015)

Exciting! Get all new furniture, too!


----------



## AZ Jim (Aug 25, 2015)

SifuPhil said:


> What about those folks who found themselves "underwater" after the last round of financial upheaval? What about all those repos and foreclosures?



Ahhhh but those poor souls bought in a highly inflated housing market, with low or no down payment.  Then when the surplus housing began appearing the value of those homes dropped and the victims of easy credit buy high purchases were stuck.  If you purchased your home when the values were deflated, paid 20-30% down, which means no PMI (which lenders demand on low down payments) they reaped the profit.  I bought this house in that down market, paid a healthy down payment, got a super loan rate as a result of my credit score and down payment and I am now ahead by 50K from where I started.  It all depends on when you buy, how much you put down, Interest rate and of course riding out the low market until it bounces back.  Phil because of the low or no down payment those folks had variable rate interest.  When the interest rate climbed some could no longer afford the payment and thus foreclosure.  I amortized my loan at a fixed rate over 20 years.


----------



## Lon (Aug 25, 2015)

RadishRose said:


> Exciting! Get all new furniture, too!



The furniture in my apartment is new. I'll just move it.


----------



## SeaBreeze (Aug 25, 2015)

I'd always advise owning over renting, if you can afford it and afford the upkeep if you can't do the maintenance yourself.  So I think it sounds good for you Lon, go for it!


----------



## SifuPhil (Aug 25, 2015)

AZ Jim said:


> Ahhhh but those poor souls bought in a highly inflated housing market, with low or no down payment.  Then when the surplus housing began appearing the value of those homes dropped and the victims of easy credit buy high purchases were stuck.  If you purchased your home when the values were deflated, paid 20-30% down, which means no PMI (which lenders demand on low down payments) they reaped the profit.  I bought this house in that down market, paid a healthy down payment, got a super loan rate as a result of my credit score and down payment and I am now ahead by 50K from where I started.  It all depends on when you buy, how much you put down, Interest rate and of course riding out the low market until it bounces back.  Phil because of the low or no down payment those folks had variable rate interest.  When the interest rate climbed some could no longer afford the payment and thus foreclosure.  I amortized my loan at a fixed rate over 20 years.



Thanks for the explanation, Jim - this stuff is all mumbo-jumbo to me. I've only ever owned one house, which I paid cash for, fixed up and flipped.


----------



## Linda (Aug 25, 2015)

It sounds fun Lon.  Sometimes a change is nice.


----------



## Lon (Aug 25, 2015)

This is gonna be tough. _I never realized there were so many condos on the market, and extremely low priced compared to a few years ago. It's going to take me months to decide since their are so many to choose from. With 20% down I will wind up paying half of the amount that I have been paying in rent. _


----------



## Shalimar (Aug 25, 2015)

Just think Lon! You may be able to buy something choice.


----------



## Lon (Aug 25, 2015)

Shalimar said:


> Just think Lon! You may be able to buy something choice.



There is nothing that I have a real yen for.


----------



## Cookie (Aug 25, 2015)

Great Lon. Have fun shopping around!


----------



## Bullie76 (Aug 26, 2015)

If there are a flood of condo's for sale in your area, just take your time and try not to fall in love with one. I would throw a low ball number at the owner and see what happens.


----------



## Son_of_Perdition (Aug 26, 2015)

You have the financial background & probably understand it better than most.  I personally wouldn't be too hasty to make a move just yet.  The stock markets are in turmoil and the economy in China may dry up some of the investments made in the US.  It could also be devastating to the 401k's that some use for down payments on housing, causing a downturn in new home sales.  People still remember 2007-8 & the foreclosures, job losses and failures of some of the large financial institutions.  

You will have at least $300-400+ HOA fees, property taxes, maintenance on your condo and interest.  If you put $50k down you would lose the possible gain by not investing that into a down market buying stocks at a discount.  It's a crap shoot but holding your money may be the smartest move to make at this time.  California is having trouble meeting the promises to the state pensions and if the market goes much lower any advantage they have gained could be lost so taxes could make home ownership a major expense.


----------



## Underock1 (Aug 26, 2015)

We started out in 1957 in a rent controlled apartment in the Bronx. The rent was 65. a month. I was making 52. a month and my wife a few dollars more. We lived there happily for thirteen years, raising two young boys. After saving the enormous sum of 2000.,we put it down on a home in then sub-rural NJ priced at 18,700. Are we done laughing yet? Besides providing a home for ourselves, this house sheltered my youngest for most of his life. It sheltered my oldest when he came back with his two boys after a job transfer that didn't work out. They lived here rent free for three years saving for a house. They came back years later for nine months while having their second home built. We have had five adults and two sub teenagers all working and going to school in a three bedroom, _one bath_ Cape Cod. We all managed to get along and actually had fun doing it. My grandson is currently living rent free upstairs for several months, saving money to get married next year. With my wife and son gone, I am on my own here now. I get a break on my taxes, and so far am actually making money just on SS and a very small pension. The house has done very well by us. It was paid off many years ago and has a current retail value of 175,000. As an octogenarian, myself, I am happy not to be at the mercy of a landlord or nursing home. Hoping to die on my living room floor.


----------



## Lon (Aug 26, 2015)

I agree completely and had already decided to not really do anything until spring.


----------



## Linda (Aug 26, 2015)

Underock1, your house has been a true blessing for you and your whole family.  I too hope you die on the living room floor, but why don't you change it a bit and be like me, I plan to die on the couch.  It's more comfy than the floor.  

Lon, maybe it's just me, but the first thing I think of is, will it be a safe place to go for walks, park my car, can I go to a local market without being molested by someone?  You won't have any trouble finding a beautiful place to live and it's a buyer's market now.  If I wanted to move and could afford it, I wouldn't wait at all, we never know how much longer we have to be on this earth.  Might as well get into a place you really like.  I think the truth is, you are pretty happy and content where you are now and that's a good thing.


----------



## Underock1 (Aug 26, 2015)

Linda said:


> Underock1, your house has been a true blessing for you and your whole family.  I too hope you die on the living room floor, but why don't you change it a bit and be like me, I plan to die on the couch.  It's more comfy than the floor.
> 
> Lon, maybe it's just me, but the first thing I think of is, will it be a safe place to go for walks, park my car, can I go to a local market without being molested by someone?  You won't have any trouble finding a beautiful place to live and it's a buyer's market now.  If I wanted to move and could afford it, I wouldn't wait at all, we never know how much longer we have to be on this earth.  Might as well get into a place you really like.  I think the truth is, you are pretty happy and content where you are now and that's a good thing.



Your right. The couch does sound better and seeing as I spend more time there, the odds favor it. On the other hand a satisfying *"Thud!" *seems a bit more crisp. I like your " Lets just face it " attitude, Linda. Usually I get " Aww. You'll probably live another twenty years." Not really interested in doing that at this point.


----------



## Lon (Aug 26, 2015)

My requirements for the Condo That I want, and I don't think I will have any trouble finding it.

Single Story/Gated Community/Washer Dryer/Ceiling Fans/Enclosed Garage with Door Opener/Age Restricted/Walk in Shower/ATT availability for TV,wireless&internet/ Outdoor Pool&Spa/Fridge & Microwave/Private Patio,two bedroom/one or two bath.


----------



## Shalimar (Aug 26, 2015)

Underock, I think it would be cool if you dropped while having a huge belly laugh. I certainly wouldn't mind an exit like that!


----------



## Linda (Aug 26, 2015)

Lon said:


> My requirements for the Condo That I want, and I don't think I will have any trouble finding it.
> 
> Single Story/Gated Community/Washer Dryer/Ceiling Fans/Enclosed Garage with Door Opener/Age Restricted/Walk in Shower/ATT availability for TV,wireless&internet/ Outdoor Pool&Spa/Fridge & Microwave/Private Patio,two bedroom/one or two bath.




Sounds good, especially the gated community and the walk in shower.


----------



## Linda (Aug 26, 2015)

Underock1 said:


> Your right. The couch does sound better and seeing as I spend more time there, the odds favor it. On the other hand a satisfying *"Thud!" *seems a bit more crisp. I like your " Lets just face it " attitude, Linda. Usually I get " Aww. You'll probably live another twenty years." Not really interested in doing that at this point.




I wasn't trying to get rid of you Underrock1.   Stay around another 20 or 30 years.  I just like to be packed and ready to go ahead of time.


----------



## Thorn (Sep 30, 2015)

Renting vs owning is nothing more than a mindset.  I often hear owners say they couldn't live in an apartment, but both renting and owning have their perks.  I have nothing at stake if the complex burns down, well, except for myself not going with it.  LOL.  The contents are insured.  I don't have to fix anything, the maid service cleans.  From my perspective, I don't understand why anyone wants the responsibility of ownership.


----------



## Manatee (Sep 30, 2015)

It was a joyful day in 1997 when I made the last mortgage payment.  I was so happy that I retired the next week.

We are now in a retirement community. three story building, but we are on the first floor.  There is an elevator, but I have only been in it once.  There are 96 buildings here.  Most residents have moved here from out of state.  Some are snowbirds.  Folks here are friendly.


----------



## oldman (Oct 2, 2015)

Pennsylvania does not offer any break on real estate taxes. Hence, I pay over $9000.00 a year in R.E. taxes. Yeah, I love being a homeowner. I have been trying to talk my wife into downsizing for over 5 years with no success. She loves this big tax burden. This is not to mention when something goes wrong the added expense. Our home is just seven years old. We had it custom built. Last month the water line from the house to the street sprung a leak. We ended up with the bill from the plumber and landscaper. A total of $3500.00. Life goes on.


----------



## Butterfly (Oct 4, 2015)

Every time I face a major repair to my home (last year it was failed water pipes under my house), which is about as old as I am, I think "Fooey on this; I'm going to move into an apartment!"  Then I look at apartment rental costs here and decide maybe I'm better off with the occasional expensive repairs.  Rental costs are just off the charts!


----------



## Triple-A (Oct 4, 2015)

I have often thought after the economy went south and price of home values here really took a nose dive that it might be smarter to rent rather than buy.  Plus you can always choose to move whenever you want to move without having to worry about selling a home.


----------



## Pookie (Oct 6, 2015)

We saved up over the years to buy our home outright with no mortgage. But repairs are our responsibility.

We do have friends our age and older who do rent. It's easier on them to have a landlord who will take care of such things as leaky roofs, plumbing issues, changing the filter on the heat pump/air conditioner thingy, clean the outside of the house/apartment, mow the yards, replace the septic tank/field, replace appliances, etc., etc.

I envy them!! But, we all make choices. Renting is best for a whole lot of people, I think. We choose where and how we live, and we have a zillion years under our belts to prove it. I don't say buy or rent; I say do what's best for you, for everyone's different. Just be happy and content and live happy!


----------



## Pookie (Oct 6, 2015)

Triple-A said:


> I have often thought after the economy went south and price of home values here really took a nose dive that it might be smarter to rent rather than buy.  Plus you can always choose to move whenever you want to move without having to worry about selling a home.



Yes, that's a very good point! 

This applies to mobile home owners. Neighborhood gets bad? Move the whole dang house to a better place!


----------

