El and Bill
New member
A quick little comment, related to retiring - many have asked us why we rent a place to live now (and in most of our working years) and there are many reasons. But one simple one, since this is often an argument owners use for why they buy a house, is purely financial. There is a great myth that owning a house is a much better economic choice for most folks. And it is simply false, except for short time periods during the past ten years. Here's the fact:
A study by the National Multi-Housing Council, an industry trade association, determined that $100 put into a house in 1985 would have been worth $210 in 2008; in stocks, the same amount would have been $710. Even if your portfolio took a 50 percent hit in the past 18 months, the figure would still be $355 today. Plus, no repairs, maintaining, taxes, etc. etc. And, owners live under another myth - that they own the house - until the mortgage is paid off, they merely rent from the bank and have to pay all the upkeep and costs.
So when you retire - if you are thinking of moving into a smaller place, think of renting. And there are many other reasons to do so, also.
A study by the National Multi-Housing Council, an industry trade association, determined that $100 put into a house in 1985 would have been worth $210 in 2008; in stocks, the same amount would have been $710. Even if your portfolio took a 50 percent hit in the past 18 months, the figure would still be $355 today. Plus, no repairs, maintaining, taxes, etc. etc. And, owners live under another myth - that they own the house - until the mortgage is paid off, they merely rent from the bank and have to pay all the upkeep and costs.
So when you retire - if you are thinking of moving into a smaller place, think of renting. And there are many other reasons to do so, also.