While cleaning up ten gallons of water from my basement floor the other day, caused by a clog in our plumbing’s main line, with the help of my friend’s innocent husband, he said something I thought was interesting. He’s a guy in finance, who owns a house twice the size of ours, and makes plenty of money to spend, and he said, “Owning a home isn’t worth it. You’d save money if you spent your life renting.”
He might be right.
I like owning a home. It makes me feel like I’m putting money away (even if I might not be.) I also like that I can do ANYTHING to the house without someone’s approval (though if it’s the exterior, I need permission from the town, but whatever.) And you know what else likes owning my own home? My ego. My ego likes it a lot.
So let’s talk numbers…
A house our size, for rent, in Dobbs Ferry, NY, can go for $3,300-4,300/month.
A house our size, owned, in our town, can go for over $2,100/month in mortgage payments, plus $1,300/month in property taxes = $3,400/month. And all you have to do is put a little over $100,000 for the downpayment, right?
It would be that “easy” if nothing ever ever went wrong with your house. The two inches of water I was standing in in our basement cost us $220 of a visit from the plumber. Last month, we paid the plumber $850 to make repairs on our plumbing. And in December? $440. And FYI, when we bought the house “nothing was wrong with the plumbing”, so it’s not like this was something we accounted for.
All kidding aside, our house is certainly not a money pit. But is money falling through the cracks? A little.
We had a meeting with a contractor a few days ago to discuss all the awesome upgrades we can make to our new lovely little house. He had great ideas, all of which I was completely salivating over. Our house came with an unfinished basement and unfinished second floor. What’s an unfinished second floor, you ask? Picture an attic, with real stairs leading up, and a ceiling even higher than the one in your living room, and that’s an unfinished second floor. We want to make the upstairs an awesome master bedroom with master bath, walk-in closet, sitting area, and small office. We want to make the basement cozy and fun with a guest room and bathroom. We want to make the kitchen look goooood, and make a more open floor plan in the living room. We also neeeed to rebuild the deck, as it’s about to fall down, and the roof needs to be extended as rain and snow water is dripping off our roof and straight down into our doorways and into our basement (Mmmm… mold.) So there are gorgeous things we want to do, and simply necessary things we want to do, equalling a total of $250,000. Good thing I planted that money tree last summer! Too bad all this effing snow destroyed it.
Needless to say, we won’t be doing all the renovations just yet.
So what if we just decided to do the necessary exterior stuff / deck and maybe the upstairs? Okay, so that’s only $150,000. But to take a line of credit from the bank for that amount? That would be $750/month in payments. And I was wondering what I was going to do with that extra $750/month that’s just been lying around!
Does it sound like I’m complaining? Yes. Am I actually complaining? No. I think I’m just doing it for effect. We feel very blessed to have what we have. Our house works. It’s small, and getting smaller, but it was built well, and it’s keeping a sturdy, though short, 10yr old roof above our heads. I’m aching to build our master bedroom with en suite upstairs, and I’m itching to move the girls into a larger room, and I wouldn’t mind having more than one bathroom for all of us. After all the visits from Douglas, the plumber (I swear, this guy is getting a Christmas card next year)… and after the $14,500 we’re spending on property taxes this year… I’m still glad we own the place. Why? Because eventually, we’ll be able to build the fantasy home the contractor told us about. Eventually, we’ll be able to sell it and automatically have the downpayment to buy an even better house. And of course…
My ego loves it.