January 17, 2008

• Home Again Home Again

  Earlier in the week I wrote about my obsessions.  And though I've spent much time on the obsession with health and diet since then, my obsession with buying a home is no less intense, just a little less immediate. 

  Several people pointed out to me that there are downsides to home ownership, and that's certainly a point to consider.  The purchase of a home has for many people been a type of investment.  They expect their home to gain in value and that some day they will be able to sell that home and reap the reward or at least leave a nest egg for their grandchildren.

  That may or may not happen.  Although home prices have traditionally appreciated, they have barely kept pace with inflation and in fact over time they lose value relative to inflation when you consider the expense of maintenance, taxes, and interest paid on the mortgage. 

  The sale or refinance of a home also costs money and anyone who does either of those things more often than three years from the time of purchasing the previous mortgage will almost certainly lose money. 

  On the other hand, while rents are typically lower than the cost of a new mortgage in the area, rents will tend to rise while the amount of a mortgage stays the same for the next 30 years.  So any comparison of renting versus buying has to take that into consideration and most of the literature out there that claims you will save money renting ignores that fact. 

  There is also value in the ability to paint your home the color you want, have a dog or not, plant your own plants in the yard, and decide when to upgrade your appliances which is the prerogative of the landlord in a rental situation. 

  But all other considerations aside, for me the main reason for aspiring to home ownership is that it is eventually ownership.  I have a son who will most probably live with me for the rest of his life.  He is a wonderful kid, bright, funny, and sweet (except to his brother, but they ARE brothers ...).  He's capable of a lot.  But his capability probably doesn't extend to supporting himself.  The jobs he's likely to hold are at best entry level positions.  I know how difficult it is to manage on that kind of wage and I am a very capable manager. 

  The more secure a foundation I can create for my child, the less likelihood there is that he will someday find himself standing on a street corner with a cardboard sign that says, "Hungry, need food."  (I'm kind of a sucker for those because I'm so afraid that one day that mother's son will be MY son.  So, I gave away my last $5 of cash to a guy in the Walmart parking lot this morning when I went to get plastic sheeting to cover my leaky windows.  It was freaking COLD out there and I didn't figure that any kind of a mere scam artist would be willing to brave that 1 degree.  This guy really didn't have any place to go.)

  I want to have a home for myself.  I don't want to be one of those sad little old ladies who's been renting the same apartment for the past 20 years and suddenly gets forced out when the landlord decides to tear the building down because the maintenance expense exceeds the profit.

  And I'm almost 45 years old.  If I got a 30 year mortgage tomorrow, I'd have to either find a way to double up payments, or I'd have to plan to work until I've been dead for at least three years.  (Wanna make a guess what my plan is?)

  So when I get paid next week, I'll deposit at least another 2 square feet into my savings account.  And I'll keep doing that just as often as I can until I have enough cash to exchange for real square feet of living space.  I got the statement from my account yesterday, and I did better in 2007 than I thought.  Even with the expense of the move last summer, I'm still ahead by 14 square feet over what I had in savings when the year started.  99 more years like that and I'll have a house. 

  • 3:23 pm
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