Cohousing-L Mailing List: Re: Cohousing-L Digest, Vol 192, Issue 6

[Ty Albright (tmalbright]

The reason home ownership (vs renting) results in equity over time - is the
forced payment of mortgage amortization and re-investment in maintenance
over time (your house becomes an equity sink / savings over time).  Yes -
there is value appreciation (not always) - but this works only if you stay
put long term (real estate transactions are expensive and eat up "profit")
and DO NOT fall to the temptation of getting a 2nd lien "home equity loan"
based on your home appreciated value over time.

If you did the math in detail - based only on numbers - it will show that
you should own your house because you like your house and want a nice place
to live - not because its an "investment".  Renting provides flexibility -
ownership can provide entrapment.

This based on my 40+ years' experience in real estate.

Ty

Ty Albright Project Management
Little Red Hen LLC
214-336-7952
tmalbright [at] verizon.net
www.linkedin.com/in/tmalbright

-----Original Message-----
From: Cohousing-L <cohousing-l-bounces+tmalbright=verizon.net [at] 
cohousing.org>
On Behalf Of cohousing-l-request [at] cohousing.org
Sent: Sunday, January 5, 2020 5:16 AM
To: cohousing-l [at] cohousing.org
Subject: Cohousing-L Digest, Vol 192, Issue 6

Send Cohousing-L mailing list submissions to
        cohousing-l [at] cohousing.org

To subscribe or unsubscribe via the World Wide Web, visit
        https://lists.cohousing.org/mailman/listinfo/cohousing-l
or, via email, send a message with subject or body 'help' to
        cohousing-l-request [at] cohousing.org

You can reach the person managing the list at
        cohousing-l-owner [at] cohousing.org

When replying, please edit your Subject line so it is more specific than
"Re: Contents of Cohousing-L digest..."


Today's Topics:

   1. Re: [C-L] affordable housing (Brian Bartholomew)
   2. Re: [C-L] affordable housing (Sharon Villines)
   3. Re: [C-L] affordable housing (Ron Ingram)


----------------------------------------------------------------------

Message: 1
Date: Sat, 4 Jan 2020 22:25:30 +0000 (UTC)
From: Brian Bartholomew <bartholomew.brian [at] yahoo.com>
To: Cohousing-L <cohousing-l [at] cohousing.org>
Subject: Re: [C-L]_ [C-L] affordable housing
Message-ID: <1635665657.8129309.1578176730260 [at] mail.yahoo.com>
Content-Type: text/plain; charset=UTF-8

 Sharon Villines <sharon [at] sharonvillines.com> writes:

> A house is totally unlike a car. The land doesn't wear out and a 
> well-maintained house will last 100 years? 200 years?

Let's count what it means to keep a house well-maintained: Re-roof every
20-30 years. Open the walls and re-plumb every 30-something years. New
kitchen and washing appliances every 10 years. New heating and air
conditioning appliances every 15 years. Some houses in St. Louis have brick
solid-core walls without cracks after 100 years, those can last 200. But
what exterior skin other than masonry lasts 100+ years without intense
maintenance like museum houses?
Replace those old colors of tile in the bathroom and kitchen; doesn't have
to be done for function but many people do it. New insulated windows and new
wall/roof insulation every so often. In coastal locations it must built
stronger than code, otherwise a hurricane or tornado will ruin it sometime
in 100+ years. This may or may not be solved by insurance; also consider
flood and forest fire. Interior repaint is cheap and can be done by
residents, so I won't count that.
Plan to pay for these major expenses with reserve fund savings which buys
less stuff each year. You're making 6%/year from investments, and losing
13%/year to cost of living increases in the cities. Net minus 7%/year, and
the math doesn't work. 

Brian  

------------------------------

Message: 2
Date: Sat, 4 Jan 2020 18:57:36 -0500
From: Sharon Villines <sharon [at] sharonvillines.com>
To: Cohousing-L <cohousing-l [at] cohousing.org>
Subject: Re: [C-L]_ [C-L] affordable housing
Message-ID: <79B459F9-9BC8-4565-8494-144CBD005784 [at] sharonvillines.com>
Content-Type: text/plain;       charset=utf-8

> On Jan 4, 2020, at 5:25 PM, Brian Bartholomew via Cohousing-L
<cohousing-l [at] cohousing.org> wrote:

> Let's count what it means to keep a house well-maintained: Re-roof 
> every 20-30 years. Open the walls and re-plumb every 30-something 
> years. New kitchen and washing appliances every 10 years. New heating 
> and air conditioning appliances every 15 years. etc,

But if you rent you pay the same costs as rents rise. When you put an effort
into a home you own, and the neighborhood increases in value, your property
also increases in value. If you rent and don?t increase your income at the
same rate, you have to move. You lose your neighbors and your sense of
place.

Housing costs. The choice is whether you want to be building value or
building someone else's value.

If you look at the rent/own calculator for those who already have a lot of
disposable income or savings, investing that money in the market or even in
rental property may very well put them ahead in the end. Particularly if you
are a millionaire living in a rent controlled apartment.

The calculations that a person can rent for $1000 and put another $1000 or
even $500 in the bank is not likely to be the case. Whether you pay the
$1,000 in rent or pay it in interest on a mortgage makes a huge difference
in time.

All of this assumes a good choice of real estate and no disasters in the
housing market at the moment you have to sell to follow your job. But if you
are renting you will have the same problem because landlords will raise
their rents to cover their costs. You will move down the housing scale.

Some where there are estimates based real costs of owning a home in various
price ranges.

Sharon
----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org






------------------------------

Message: 3
Date: Sat, 4 Jan 2020 20:19:03 -0800
From: Ron Ingram <ingramr88 [at] gmail.com>
To: cohousing-l [at] cohousing.org
Subject: Re: [C-L]_ [C-L] affordable housing
Message-ID:
        <CAO5m8vogORwbvsFmmdFayKFXqxmSPrsfbid9E3us=7zAUVgF8w [at] 
mail.gmail.com>
Content-Type: text/plain; charset="UTF-8"

{{{But if you rent you pay the same costs as rents rise. When you put an
effort into a home you own, and the neighborhood increases in value, your
property also increases in value. If you rent and don?t increase your income
at the same rate, you have to move. You lose your neighbors and your sense
of place.

Housing costs. The choice is whether you want to be building value or
building someone else's value.}}}}


I agree.

It frustrating when you are trapped in a cycle of generational poverty where
rent robs you of the time and energy that could have been spent building
your own wealth instead of someone else.

Each year I have had to move apartments due to rent increases. They usually
always offer a deal to hook you in then jack the rent up with nothing to
stop them.

On the other hand my parents are homwowners and I have watched my parents
struggle with the upkeep of our habitat for humanity home. Poverty is a
death trap. we had barely any money when we got the house so most of these
families don't hAve the money to do the upkeep of it. luckily skilled
electricians plumbers and roofers run in the family or are friends of my
dad. But this is an issue when I think about low income persons owning a
home. money or resources for the upkeep. But with the formation of a board,
much like the one for an intentional community I think collectively that
could be handled more efficiently.





On Sat, Jan 4, 2020, 3:57 PM Sharon Villines via Cohousing-L <
cohousing-l [at] cohousing.org> wrote:

> > On Jan 4, 2020, at 5:25 PM, Brian Bartholomew via Cohousing-L <
> cohousing-l [at] cohousing.org> wrote:
>
> > Let's count what it means to keep a house well-maintained: Re-roof 
> > every 20-30 years. Open the walls and re-plumb every 30-something 
> > years. New kitchen and washing appliances every 10 years. New 
> > heating and air conditioning appliances every 15 years. etc,
>
> But if you rent you pay the same costs as rents rise. When you put an 
> effort into a home you own, and the neighborhood increases in value, 
> your property also increases in value. If you rent and don?t increase 
> your income at the same rate, you have to move. You lose your 
> neighbors and your sense of place.
>
> Housing costs. The choice is whether you want to be building value or 
> building someone else's value.
>
> If you look at the rent/own calculator for those who already have a 
> lot of disposable income or savings, investing that money in the 
> market or even in rental property may very well put them ahead in the 
> end. Particularly if you are a millionaire living in a rent controlled
apartment.
>
> The calculations that a person can rent for $1000 and put another 
> $1000 or even $500 in the bank is not likely to be the case. Whether 
> you pay the
> $1,000 in rent or pay it in interest on a mortgage makes a huge 
> difference in time.
>
> All of this assumes a good choice of real estate and no disasters in 
> the housing market at the moment you have to sell to follow your job. 
> But if you are renting you will have the same problem because 
> landlords will raise their rents to cover their costs. You will move down
the housing scale.
>
> Some where there are estimates based real costs of owning a home in 
> various price ranges.
>
> Sharon
> ----
> Sharon Villines
> Takoma Village Cohousing, Washington DC http://www.takomavillage.org
>
>
>
>
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> http://L.cohousing.org/info
>
>
>
>


------------------------------

Subject: Digest Footer

_________________________________________________________________
Cohousing-L mailing list -- Unsubscribe, archives and other info at:
http://L.cohousing.org/info


------------------------------

End of Cohousing-L Digest, Vol 192, Issue 6
*******************************************