“Affording” a home

I think it’s time to move.

I have been in my current apartment for 10 years. The longest I ever spent in one place before this was a year and a half. I didn’t mean to stay here so long, but inertia set in, and years passed, and here I am.

Every 2-3 years I look for a new apartment. I get discouraged when I can’t find anything nicer than what I’ve got for the same price, even in a less popular neighborhood. And I like my neighbors. So I stay. And then the next year I consider moving again. It’s a tiresome cycle.

But this year may just be the year. I’m tired of this. I want a change. And my recent dog experience made me realize that if I’m going to move, I should do itΒ now, before I get a dog, because it would just be too hard to move with a new pup in my life.

In the past, I always set my housing budget based on my income and the others things I spent money on. When I moved to my current place, it was more expensive than where I was moving from, but I decided it was worth giving up some of the extras in my budget so I could afford it.

Now it’s different. My social security disability and other benefits cover my non-rent expenses and I have a few hundred dollars left over to put towards rent. But a few hundred won’t do it around here. Until now I’ve been taking the rest of the rent from my savings, but that won’t work forever.

I won’t get a roommate. Not only would I hate having a roommate, but I couldn’t share the kitchen with someone unless they also had Celiac Disease. So let’s assume no roommate. What are my options?

I can stay where I am. My guess is that my rent will be going up when I renew my lease (I’ll find out in a few weeks.) Let’s say staying here would be $1600 per month, including heat but no other utilities.

I could move to a nearby town where I’d like to live, and pay around $1500, including heat.

I could move to a town a bit further out and pay $1400, including heat.

I could move an hour away and pay only $1100, but have no friends or social life nearby.

I could put all my savings into buying a condo, with a mortgage lower than my rent. But then, when I add in condo fees, property taxes, and repairs, I’d be paying about the same as I pay in rent, but, I’d have put my savings into the down payment.

I could buy a single family house with a mortgage about the same as my rent. There’d be no condo fees, but I’d still be pulling money out of savings every month unless I could start earning more…. but there’s be less in savings because I’d have used it for the down payment.

I could move farther out and buy a 3-family house, live on the first floor and rent out the other two floors. My savings would go into the down payment, but the rent from those two apartments would cover my mortgage, property taxes, and house repairs.

Obviously the last option makes the most financial sense, but it has some problems. I’d have to move at least 45 minutes away, maybe more. That means I wouldn’t see my friends as much or socialize as much. I know nothing about owning a house. I’ve always rented. And I can’t fix anything, or event attempt to learn, because of my health problems, so I’d have to hire someone to fix every little problem. I’d have to deal with tenants. But on the bright side, if the rent from the tenants covered my costs, I could basically live there for free. Then my social security would cover the rest of my expenses (medical bills, car, etc.) and I wouldn’t have to worry about doing any other work.

I would probably buy a 3-family house if I could do it near where I am now, but it’s simply not feasible here (it would be at least $600k.)

So that brings me back to renting as the simplest, most straightforward option. But I can’t afford to rent indefinitely unless I start earning a living.

Blech. I keep running around in this circle in my mind. I look at apartments and condos and houses online and I run the numbers over and over again. I’ve done the research on how to calculate for vacancies when renting out. I’m good with numbers. But no matter what I do, the numbers just don’t add up.

The answer is obvious, really: move away. But my life is here. My friends, my social life, my chronic pain support group, my doctors….everyone is here. I can’t imagine starting over.

I’m lucky that I have options. I know that. I am incredibly lucky. I’m thankful that I saved up some money back when I was working. I’m lucky that my family has helped me out from time to time. But that luck isn’t enough to support my current lifestyle. So I’m just not sure what to do.

And in case any of you regular readers are wondering about Section 8, I’ve been keeping an eye out for places that would work with that, too, but I’m not seeing anything. And considering how inept they’ve been about processing my paperwork, I’m not exactly holding my breath that it will come through anyway. So, it’s in the back of my mind as a potential option, but I don’t think it will solve this conundrum for me….

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4 Responses to “Affording” a home

  1. It’s a tough call, for sure. Owning a house means doing all that yard work, too, and snow removal, or hiring someone else to do it. Having tenants could work if you get good tenants who can help you maintain the property (maybe give a rent credit if they’re willing to lawn mow or shovel snow), but then you give up your privacy and you’re still responsible for anything that breaks.

    Hubby and I are going through a similar decision-making process. We need a smaller house because we’re getting older and the kids are all gone. Do we go ahead and buy a ranch type house (and still have to do the maintenance and yard work, but keep our privacy), or do we go into a condo (no maintenance, but we’d have to share walls, and we’d still have to pay real estate taxes), or do we go into an apartment (again, sharing walls, and there’s always the risk of the building changing ownership and the new owner being a jerk). One of my kids is currently buying her own home, which is bigger than she needs right now. I told her Dad and I would simply move in with her, but (gasp) she didn’t seem to like that idea very much. Even the incentive of partial ownership of Puppy Cody didn’t sway her.

  2. Lorna says:

    It’s really not an easy decision. Fortunately hubby and I own our home, having paid the mortgage off when he retired.
    I think I’d be tempted to move to the $1400 rent area and hope I could find a really good place. Your rent is on par with flat rentals in London. Where I live you can get a whole 3 bedroom house to rent for about $780.
    Good luck with your decision, Hugs xx

    • chronicrants says:

      A whole house for $780! I can’t even imagine! But that would be my dream, to rent a house – then I’d have a yard for my dog, but no responsibility for maintenance πŸ™‚

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