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Xantippe
Guest
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I’m not so sure that I agree that renting is the way to go. If you rent you do save on home repairs but you can’t deduct any property tax or mortgage interest. It might be a good idea if the job situation isn’t steady but otherwise I think owning is the way to go. And 100k seems a bit too high for me. I know I was comfortable at 54k and now that I eary 110k I feel that I have money to burn.
- Renting is mentioned as something that a couple might need to accept, not necessarily a requirement. There are areas (for instance much of California) where normal people can’t afford to buy homes. Vancouver, British Columbia is the same way.
Our family did the Dave Ramsey plan on waiting to buy a house until we had no debt, had a solid emergency fund, and had a good downpayment. It took FOREVER (or 15 years–close enough).
When you start having kids without having a running start on finances (which is what we did), it can take a very long time to be in a position to own a house, even assuming that household income eventually takes off. I find that the go-ahead-have-kids-everything-will-be-fine! brigade don’t usually mention that. It needs to be mentioned.
- The idea is that by having other amenities (helpful family, a strong church community, helpful neighbors, etc.) it’s possible to bring that $100k down quite a bit but still enjoy a similar quality of life. For instance, let’s say that you have a neighborhood that is so full of kids your kids’ age and so many friendly families that your kids get all the socializing they need and barely need to bother with extracurriculars. That’s instantly much less expensive than needing to do a lot of extracurriculars, drive all over creation, and do drive thru dinners several times a week because there either aren’t any children in your neighborhood, they’re the wrong age, or they never leave the house except by car. Or, let’s say that the local public schools are your cup of tea. That means huge savings compared to a family that feels that they need to do private schools (assuming equivalent housing prices).