As per title, does it make much financial sense for single person, with no kids and no plans for either, no other dependents, and stable job/career to get on the property ladder rather than rent?
It's understood that rent is higher on average that mortgages, but ignores the associated expenses/costs eith home ownership.
So, could the opportunity cost of "investing the rest" mean that the ends don't justify the means with home equity?
Does Homeownership Make Sense A Single, Live-alone Type?
byu/Theo_Cherry inFrugal
Posted by Theo_Cherry
7 Comments
I am what you describe. I bought 4 years ago. My mortgage was cheaper than my rent when I bought. YMMV
I do have two dependents. They’ve got four legs and purr.
It varies by area. Not all real estate markets are the same. Some are stagnant while others seem to increase in value endlessly.
Long term, your rent will likely go up more than your mortgage + taxes/insurance.
It was an unnecessary time and money drain for me when I was young and single. Making multiple trips to Home Depot some weekends when I was in my late 20’s to fix up a house that I didn’t sell for much profit caused more time, stress, and money than it was worth. Would’ve been so much easier to rent and save my time/money looking back.
It depends of what you want and not what is cheaper. I am with my bf. No kids. We bought a house 10 years ago. I wanted a house. We lived in appartments for 8 years before that. We could just not do it anymore. Hearing the neighbours, dealing with landlords, not being able to do everything you wanted, no land. For our mental health, we needed a house. Is it cheap? nop. Am I happier? Oh yeah!
Now, you don’t need to buy a mansion neither. But within your needs. Also, try not to go in an HOA.
Being single isn’t the only factor and probably not even the most important one. I bought a house because I want a space that I own and can do whatever I want with.
It depends on what the real estate market is like in your area and what’s important to you. In my neighborhood – owning would be ~2x what we’re paying in rent, and would mean we couldn’t be flexible about space the way we can now (we switched to a larger apartment during the pandemic, and I’m stalking smaller apartments now).
Its really a life decision type of thing. Their pros and cons for both buying and renting. Same goes for the type of property you choose to buy or rent. Anything can make sense for the right person at the right time.
I bought a house in the middle of nowhere as a single person and couldnt be happier. I couldnt imagine using my woodworking tool in an appartment or condo. Renting a house cost more than a mortgage, so buying made sense to me. Bonus I bought a property with a basicaly unlimited supply of wood. I did have expense and trouble with my house. My drain froze, my basement flooded, had to change the furnace, the roof is due next year, but even with those cost and worry added, I dont regret my decision one bit.