I
was thirty years old (30) when I bought my first home.
It was a small, one-bedroom condo near the beach. It was
a very fun place. I had great neighbors and thoroughly
enjoyed living there. I still remember how nervous I was
at buying a place that cost so much money (about
$100,000). I had never owned anything that cost that
much in my entire life. Years before that, I had bought
a car and had to write a check from the checking account
setup by the bank that was loaning me money for the full
amount of the car. I had been nervous that day as well.
It was only about $13,000; but that was a lot of money
for me back then. One hundred thousand dollars was a lot
of money for me at the time when I bought that
one-bedroom condo as well. It would have been a lot of
money for most anybody anyway. Of course, I have gone on
to buy more houses for far greater prices. It got easier
with each sell and with each purchase... that is, until
the real estate bottom fell out.
Now, at thirty-six (36), I am
leaving the world of homeownership and reverting back to
being a renter. In fact, even though my house has not
officially gone through foreclosure, I have already
moved all of my furniture and belongings into a rental
unit. It is not too far from my home that I am losing.
It is smaller, but it is still very nice. I will no
longer have a garage, but I will be okay with that.
I am sure I am not alone in this lifestyle
transition of moving back into being a renter instead of
owning the home in which I lived over the past few years.
Of course, many people may have it even worse. They may
be having to move in with family or into government
subsidized housing or worse - onto the streets. Whatever
the situation, it is a hard one for everyone involved.
Especially if you have a family that you are having to
move with you.
People who are returning to the rental markets are
facing not only financial stress but also psychological
stress. Both of these combined inevitably lead to
physical stress as well as you cannot possibly sleep
well at night.
Of course, there are probably benefits as well. Remember
the worries that you took on when you bought your first
home - insurance, property taxes, pest control, cutting
the grass, painting, all of the utilities? Remember that
a lot of these things you did not have to worry about
when you had a landlord. I had a ten thousand dollar
property tax bill last year. I certainly will not miss
that. Plus, with rental properties, a lot of amenities
might be available that you did not have with your own
home like a pool and a fitness center and such. The cost
of sharing these amenities in apartment complexes are a
lot lower than paying for the entire thing at a private
home.
Keep all of these things in perspective if you have to
lose your home due to foreclosure or bankruptcy. There
are many good things that come from renting rather than
owning.
Weight all of your choices carefully. Take your time, and
make the best decision for you and your family.
While you're here, take
our survey please. It is only one question. Where will
you be moving when your home goes into foreclosure?
Results will be posted shortly.
