Why do people think they are home owners when they never even get close to actually owning their home?

Question

People flick their noses at renters, yet in reality for most 'home owners' they never actually own the home. They merely pay interest most of their lives. Possibly by the time they are 90, they might own their home. But most people die before actually owning. What's up with that? At least with renting, a landlord fixes your stuff for free.

I'm talking most people here. I know there are exceptions.

Why is everyone assuming I'm a renter?I'm actually a so-called 'home owner'. But I don't flick my nose at renters, like others do.

Some of you people assume way too much.

Answer 1

i was once a home owner and finally found out that you do not own them until you work 30-40 years and paid it off.
but you still have to pay taxes,utilities association and school tax.
I lost a job ,give it up but lender foreclosed it and move out of state and enjoy paying rents and have time for party.

renting or payments 30yrs.? both are sad thing to think.

Answer 2

If you ask the bank, they have no interest in owning the house. They simply want to make money from loaning the money.

The first house my wife and I owned we bought for $42000 and sold two years later for $60000. We paid off the loan and closing costs and had thousands in our pocket.

If I was still making those $425 house payments they would sure be less than all the people renting those same houses right now. (I happen to own the house next door and rent it to a couple for $925)

In the Jimmy Stewart movie "It's a Wonderful Life" there is a wonderful speech about why someone should be able to borrow money and buy a house to raise their family in. Over this Holiday season try and find the time and watch it.

But no one should look down on you simply because you choose to rent rather than buy.

Answer 3

when that happens, just remind them how many more years
of mortgage payments they have, how many applicances they might have to replace, the gardening, the mowing,
the painting, the roof, the upkeep, the debt that they are in,
and all it takes is a job lay-off, a car accident, health issues
or all the debt they incurred trying to keep it and then they
are losing their house to foreclosure or liens and then they
are on the street. So let them flick their noses. You probably have more cash saved up then they do. I like
cash !!!! Being debt free and renting and not paying
for repairs of water heaters, roofs, and applicances, rugs
shower leaks, water leaks, leaks of any kind. Hopefully
their house will be paid off by retirement and hopefully
the house is worth double than it is know. But I'll have
that much saved up already and with no headaches.

Answer 4

They own the equity they build up. Most homes increase in value so when you sell you get the increase in value. You also get to deduct your interest at tax time. Renters just give and get nothing.

Most people do not die before paying off their mortgage. Many people have 15 year mortgages.

We paid off our first house and it sold for more than three times what we paid for it 20 years later.

Answer 5

Most loans are for only 30 years or less...plenty of time to finish paying off a house....probably most people you are talking about get multiple morgages to obtain cash to invest, pay off debt, or fix up the their home...so these people are the ones that will most likely not own their home before they die. Even though you initially only pay a little in comparison to the interest, when the property value increases, you will have more equitable income to borrow against.

For example, I bought my house for $63k. I have had it for 8 years, the prinicipal is down to $53k; however, the houses in my neighborhood now sell for $100k...my equitable cash value would be $47k...quite a profit...to either sell or refinance; however, unlike the majority, I am wanting my house paid off and will not get a second or third mortgage.

Answer 6

I had to address this one......
Ok some questions just arent worth trying to educate but I had to address this statement......

>At least with renting, a landlord fixes your stuff for free.<

LOL if you are the one that is paying the landlord......how do you figure that repair was free? As a matter of economic facts, if my tenants pay $1000 a month to live in a unit. My total cost is $700 a unit. I bank $300 per month for 10 months. That is $3000. Month 11 and 12 you call for me to repair plumbing and heater to a tune of $275. Now for 12 mos I've banked $3325. and you got free repairs? ooo ok...
But the way I see it your repairs just cost you $3600 for the year and they cost me $275 which I can write off on my taxes.

Buyers have the opportunity to lock in their monthly outgo whereby you have no control over rent increases without demoting your lifestyle and living in a lesser place with each increase.

Owners also have the luxury of living in a nicer area. The more owners there are generally the better the area. A high rental area often is reflected in the "lack of ownership" attitudes.
The "its not my yard" mentality makes rental neighborhoods obvious.

Your thinking may apply to some who don't understand money. But you're not thinking of the people who watched their values increase (rents have no value increase) sold and bought outright in another area. Or those who have no mortgage because their home is paid off.

There are those who refinance their equity so often that they will never own anything, true. May not everyone took that same finance class.

Some of us truly appreciate lifetime renters such as you.
The more people who 'don't get it' the more security I have in my rental income increasing. My rentals are on 15 year loans. After paid off, that is 100% income while I sit on my butt waiting for a tenant to call me to do a free repair.

Might I suggest listening to http://www.daveramsey.com .
Renting should be a means to and end. Not a lifestyle choice.
You don't realize it but taxes increase. If that rental you live in is paid off, the landlord will still have to increase rent to cover the tax bill on it every month.

Your paying a mortgage ....... whether you own it or not.
Most landlords taste in decor and carpet, lino is cheap, cheaper and cheapest. Not what I want to live with...but some don't mind.

Good Luck

Answer 7

I'm a homeowner. Most mortgages are for 30 years, so most people are able to pay them off by the time they're in their 60s, not their 90s. Homeowners really do own their homes, though. After all, you can't sell what you don't own, and people with mortgages sell their homes all the time. I don't think homeowners really thumb their noses at renters, anyway.

Answer 8

Ya know, I've owned properties for years. I'm sick of being a landlord. And I'm sick of owning my own home. If I would ever get another home, I would RENT. I have NEVER made money off buying/selling a house. It all goes to interest, taxes, insurance, repairs, non-paying tenants. And I've paid cash!! By the time you sell a house, you'll never get the dollars you have put into it. It's a no-win game. I'll rent next time and not waste all my money. I'll let my landlord do it all. I could put my grandkid thru college!

Answer 9

The owner is the person or persons named on the warranty deed. The lender only has a lien against the property, but they do not own the property.

If someone if flicking his nose at you, he isn't worth the time or trouble to worry about him.

Answer 10

Here's a correlative inquiry: How can we assert that people are homeowners who live in states that have property taxes?
For Damn's sake, we need to find alternative funding sources for schools and the like. Property taxes are piracy with a pretty, yellow bandana.

Even if you finally do pay for your home, you will lose it lest you remember to pay your annual piracy shakedown.

It's BS and you know it.