No one really talks about it, but I hate being a homeowner.  Nope, I hate it.  I hate it so much that I used a color font for probably the second time in the 8 years of running this site.  Since purchasing my home I have had to:

  • Do masonry work on my fireplace since starting a fire made my house reek of smoke
  • Convert from oil to gas after calculating the exact amount I’d save converting from oil to gas heat
  • Replace boards in my deck from rotting
  • Redo my whole upstairs insulation
  • When the foundation allowed seepage during a ridiculously heavy rain storm coupled with a loose gutter I had to replace carpeting I installed when we moved in 18 months earlier
  • Replace my Air Conditioning Condenser
  • Fix a whole in the drainage pipe that ushers all the water out of my house

That’s just the stuff that was out of the ordinary and I remembered when writing this post.  See those last two? The AC happened 4 days ago at a price of $2,700 (cash of course) and then the pipe happened yesterday – obviously they were the muse for the post.

I will say right off the bat, I am not going to do anything about my hatred.  Zero.  Instead I get to just bitch about it anonymously on the internet (along with anyone else that asks).

The Only Two Benefits of Home Ownership I can Come up With

There are literally two benefits I can come up with for owning a home, the first is, and probably the reason homeowners likely have a higher net worth is that paying your mortgage is a forced savings mechanism.  Since I am not going into foreclosure anytime soon the equity in my home keeps going up.   Is it s a fast process? Nope, but it is something.

Effective DateReversalPayment TotalUnpaid BalancePaid Through DatePrincipalInterestEscrowLate ChargeUnapplied FundsOther Amount
06/15/2015$64.09$369,592.9406/01/2015$64.090.00$0.00$0.00$0.00$0.00
06/15/2015$2,935.91$369,657.0306/01/2015$673.771041.56$1,220.58$0.00$0.00$0.00
05/15/2015$2,935.91$370,330.8005/01/2015$671.881043.45$1,220.58$0.00$0.00$0.00
04/13/2015$26.65$371,002.6804/01/2015$26.650.00$0.00$0.00$0.00$0.00
04/13/2015$2,873.35$371,029.3304/01/2015$669.931045.40$1,158.02$0.00$0.00$0.00
03/13/2015$26.65$371,699.2603/01/2015$26.650.00$0.00$0.00$0.00$0.00
03/13/2015$2,873.35$371,725.9103/01/2015$667.971047.36$1,158.02$0.00$0.00$0.00
02/13/2015$26.65$372,393.8802/01/2015$26.650.00$0.00$0.00$0.00$0.00
02/13/2015$2,873.35$372,420.5302/01/2015$666.021049.31$1,158.02$0.00$0.00$0.00
01/13/2015$2,873.35$373,086.5501/01/2015$664.161051.17$1,158.02$0.00$0.00$0.00
12/15/2014$2,873.35$373,750.7112/01/2014$662.291053.04$1,158.02$0.00$0.00$0.00
11/14/2014$2,873.35$374,413.0011/01/2014$660.441054.89$1,158.02$0.00$0.00$0.00
10/15/2014$2,873.35$375,073.4410/01/2014$658.581056.75$1,158.02$0.00$0.00$0.00
09/08/2014$2,873.35$375,732.0209/01/2014$656.741058.59$1,158.02$0.00$0.00$0.00
08/13/2014$2,873.35$376,388.7608/01/2014$654.891060.44$1,158.02$0.00$0.00$0.00
07/15/2014$2,873.35$377,043.6507/01/2014$653.061062.27$1,158.02$0.00$0.00$0.00
06/16/2014$2,873.35$377,696.7106/01/2014$651.231064.10$1,158.02$0.00$0.00$0.00
05/13/2014$2,873.35$378,347.9405/01/2014$649.401065.93$1,158.02$0.00$0.00$0.00
04/15/2014$2,873.35$378,997.3404/01/2014$647.581067.75$1,158.02$0.00$0.00$0.00
03/11/2014$2,924.61$379,644.9203/01/2014$645.761069.57$1,209.28$0.00$0.00$0.00
02/18/2014$2,924.61$380,290.6802/01/2014$643.951071.38$1,209.28$0.00$0.00$0.00
01/14/2014$2,924.61$380,934.6301/01/2014$642.151073.18$1,209.28$0.00$0.00$0.00
12/16/2013$2,924.61$381,576.7812/01/2013$640.341074.99$1,209.28$0.00$0.00$0.00
11/15/2013$2,924.61$382,217.1211/01/2013$638.551076.78$1,209.28$0.00$0.00$0.00

 

The second benefit I can think of is stability.  I am not minimizing the aspect of stability, especially for children, I just don’t know to quantify it.  But, if I had to be honest with myself this is likely the reason I will be doing nothing about this rant.   The Wife and the 2 children deserve a place that they feel comfortable in that is theirs.

The Cons of Home Ownership are Numerous

I am obviously pretty heated about the topic, but imagine I offered you an “investment” that:

  • Is highly illiquid
  • If you do sell there are tremendous surrender charge like fees
  • At any time I can ask you to put more money into it that may or may not raise your principal investment, but if you don’t put that money your principal investment will go down QUICKLY (go check out that list up at the top again)
  • On going interest charges for 30 or so years
  • You will be taxed on the value of the investment every year
  • Will literally never throw off income
  • Every month/year you will have to give me more money and if you don’t you almost everything you put in
  • Taking everything into account above it is very likely you’ll have a negative internal rate of return for 10 or so years

What would you say to me? Go F’ myself? Probably.  But for some reason, society deems home ownership to be “different.”  This is the same society that says we should work our asses off from age 22 to 67 so we can REALLY enjoy 67 to 90.

Another problem the cons listed above about whether it is an “asset” can be applied to the non-investment nature of the home.

For one, you are absolutely stuck as your home isn’t going anywhere (maybe this a pro for some people) – I like to believe I am someone who can pick up and go, but I haven’t left Long Island to live…ever.  For another you are in constant hamster wheel of disrepair.  Inevitably things break, and you must fix them otherwise shit hits the fan.  Who lives in a home without furniture besides Steve Jobs, so that means you are forced to fill up that home with more material stuff.  If you live in the suburbs, like I do, you are expected to keep your lawn as nice as the inside of your house.

*breath*

I think this rant made me feel a little better! So thank you all for listening.