His comment really got me to thinking.  Would someone really be a renter forever?  Here are some reasons why I don’t believe you should rent for life.

1)  You will always, always have a payment.  When you are 65 years old, you’ll still be paying rent.  This is a time in your life when your income will be limited and you won’t need extra payments.  Will you be able to afford your medication, rent, groceries, and utilities?

2)  The cost of rent will continue to increase.  Just as inflation goes up, so will cost of your rent.

3)  You get nothing for your money.  Figure it out.  If on average you pay $1200 per month for rent for 40 years, that’s $576,000.  Yes, I said $576,000!  And the $1200 per month I figured is a generously low estimate.

4)  There is no return on your money.  Not only do you get nothing but temporary housing, but your money is not being invested.  Think of all the older folks you know that paid $22,000 for their homes.  They’re paid off and their homes are now worth 10 times more than they paid for them.  If they get into a financial bind, they can always sell their homes.

5)  You’ll have something to leave your spouse and children.  When I was a teen, my friend’s dad died.  I was shocked to find out that her dad had made some very poor financial decisions, one of which was renting the same house for about 20 years.  This house was only worth about $50,000 at the time.  After he passed away, he left his wife with little to no insurance and his wife had to figure out how to make it on her own, which included the extra burden of rent.  Thankfully, she was able to get a low-income loan, but it was not easy for her.  That $50,000 house that he rented for so long could have been hers to keep if he had purchased it rather than renting.

The purchase of a home is not for everyone and I’m certainly against buying a home if you cannot afford it.  In the long time scheme of things, I believe that buying a home is the best option. 

What are your feelings on renting versus buying?

image (c) Karen Weideman

Post from: Thrifty Mommy

You see, almost four years ago we bought a house.  We lived in it, fixed it up, and cared for it.  We wanted to make it a special place for our family.  Now here we are selling it and taking a loss.  A big loss.  We actually have to borrow money to sell it.  You may be wondering why I would be borrowing money to sell a house.  Well, it’s been on the market for eight months.  As you can imagine, the upkeep on a home can be very expensive and then add to it rent and utilities in another location, and it leaves us with little money left each month.

For eight months, we have been paying a mortgage, insurance, taxes, and utilities on a house we’re not occupying.  All of this while the housing market is down.  We’ve had people interested in the house, but none that could come up with the money.  The city where the house is located has seen a lot of lay offs.

You may be wondering why I wouldn’t just hang on to the house and wait until the market picks back up.  There are several reasons for this. 

1)  This is the first offer we have received on the house.
2) We don’t know when the market will pick back up again.
3) The financial strain needs to stop.
4) The market where the house is located is far worse than it is here.
5) Houses where we currently live cost a lot more.
6) Interest rates are the lowest they have been in many years.
7) Reasons #5 and #6 equal the reason we can afford to buy a house now.

Let me make this clear:  I hate debt.  This is not the road I want to take, but right now it seems like the only option.  And with rates being the lowest they’ve been in years, we can actually afford to purchase a house here.  The money we’ll save in interest far outweighs the loss on the other home.

I’ve had several people suggest a shortsale on the house, but everything I’ve read about shortsales messes with your credit.  (Shortsales are a better alternative to foreclosure though.) 

Sorry, this is no money saving lesson for today.  This is just a lesson learned and some thrifty struggles, weighing options, and finding the best way to get through it.  I’m hoping things are financially well your way.

images (c) Karen Weideman

Post from: Thrifty Mommy

Sandra Felton,The Organizer Lady® will be speaking about the ideas found in her 24 page booklet I’ve Got to Get Rid of This Stuff.

WHEN? Wednesday, March 18, 2009

TIME? 9 PM Eastern Time, 8 Central, 7 Mountain, 6 Pacific

HOW LONG? One hour has been set aside for your burning questions.

COST? FREE There is no charge for the teleclass.  Of course, regular telephone charges will apply just like when you call Aunt Sally in Wyoming.

HOW TO PARTICIPATE? Just dial the telephone number and use the access code given below when asked. For those of you who have never participated in a teleclass, it is just like listening to the radio, only over the phone.

TELEPHONE NUMBER to call is 712-432-1699

ACCESS CODE is 466504#

Come prepared with pen and paper to write your strategies and goals.

ALSO – If you miss the live teleclass it will be available on messies.com for you to listen to at your convenience!

If you attend, please let us know how it goes.  If everything goes well tonight, I may drop in on the call.

Image: Karen Weideman

Post from: Thrifty Mommy

My hubby was feeling very motivated Saturday night and he got some projects completed around the house.  One of the projects was pressure washing the deck.  Check out these pictures which show the before and after.

You can see the line where my husband stopped cleaning so that he could eat his dinner.  I’m actually glad that I got to see the difference so that I could appreciate it much more.  I can hardly believe our deck got that dirty within just a few years.

DIY projects can save your family a lot of money.  Just make sure you know what you doing. 

What kinds of projects are you tackling on your home?

images by Karen

Post from: Thrifty Mommy

How do we create that haven?  I think we need to surround ourselves with things that are important to us, that have an emotional resonance. This can be providing fragrance in the home. It can be having flowers in the home. It can be surrounding yourself with whatever you feel is beautiful. You may want to put out your own creations,and those creations of your family. I still keep pictures drawn by my Grandchildren on my fridge with magnets. It may not be something a decorator would recommend, but it helps me to feel closer to them.

I love plants in my home. I do keep some silk ones for places where there’s not enough light for real ones to grow, but I also keep several live plants that have meaning to me. These are plants that were given me for my Mother’s and Father’s funerals. I noticed how much Mom enjoyed the planter that she received at Dad’s death and how it had survived and grown enough to need repotting. Now I also have 2 beautiful baskets given to me for my Mom’s funeral not quite a year ago. Keeping those plants healthy and displaying them along with Dad’s have given me comfort and added to the ambience of my home. 

How do you create a warm and loving environment in your home?

Post from: Thrifty Mommy

Before we buy a house we usually visit the house and the neighborhood on several occasions, during different times of the day.  We look around to see what kind of traffic there is, what kind of neighbors live in the area,  if people are walking the streets, and various other things to see if it is a place we would want to live for a while. 

We also pay attention for things like rotted wood, the roof’s condition, and items that may need to be replaced right away.  We check out the appliances and their manufactured date, especially the heating and air conditioning units.

Clark Howard also has some tips for home buyers. 

• Get a copy of your credit reports four to six months before you start home shopping and pre-quaify for a mortgage before you start looking.
• If you’re buying a house strictly for financial reasons, look at each house you’re considering as you would evaluate a purchase of stocks or bonds.
• Don’t buy one of the first houses in a subdivision. The developer may go bust and be unable to complete the development.
• Make any offer on a home contingent on its passing an inspection. The purchase also should be contingent on your ability to get financing at or below a set interest rate.
• Get an owner’s title insurance policy that covers you, not the lender, if your ownership is successfully challenged.
• Hire a real estate attorney to review the closing papers and, if you’re buying a house still under construction, to draft or review the purchase contract.
• Before you buy a house, try your commute to work during rush hour.
• Learn about the area surrounding a potential purchase, including the potential for new roads or new development.
• Look at a property while it’s raining to see how water flows across it. Look for signs of poor drainage and danger of flooding.
• Buy a house that’s fundamentally sound in construction and materials, even if it doesn’t have the latest, greatest design features.

Be sure to check out Money Saving Insurance Tips for Home Buyers.

Post from: Thrifty Mommy