The real cost of owning a home

Original Article ↗ Hacker News Discussion ↗

DIY vs. Contractor Costs and Opportunity Cost

  • Many say doing your own maintenance saves large sums (water heaters, closets, basic plumbing/electrical), and can yield higher quality than cheap contractors.
  • Others stress opportunity cost: for high earners, weekends of DIY may be worse than just paying professionals.
  • Time and physical wear‑and‑tear are big downsides; some regret “This Old House” years instead of more consulting work.
  • A middle ground is suggested: learn basic skills, but also have a reliable handyman and selectively hire specialists for code‑sensitive work (HVAC, structural).

Condos, HOAs, and Shared Buildings

  • Condos are described as “worst of both worlds” by many: you pay for maintenance via HOA but have little control unless on the board.
  • Frequent complaints: underfunded associations, surprise special assessments (sometimes 5–6 figures), mismanagement, political infighting.
  • Some note efficiency of scale (shared full‑time maintenance) and argue that reading bylaws and financials can mitigate risk.
  • HOAs for single‑family homes often seen as low value or even hostile; advice is commonly “avoid HOAs if you can.”

Rent vs. Own: Financial Arguments

  • Strong disagreement over whether owning “always” beats renting.
  • Pro‑owning:
    • Fixed mortgage payments vs. rising rents; housing as inflation hedge.
    • Leverage: small down payment controls a large appreciating asset.
    • Tax benefits (mortgage interest, property tax deductions, capital gains exclusions) in some jurisdictions.
    • “Forced savings” for people who wouldn’t otherwise invest.
  • Pro‑renting:
    • Flexibility and mobility; no six‑figure repair shocks.
    • Ability (in theory) to invest down payment + monthly savings into index funds and come out ahead.
    • Many argue housing returns, after inflation and maintenance, are mediocre compared to equities.
    • Market conditions matter: in some high price‑to‑rent areas, long‑term renting + investing looks better.

Psychological and Lifestyle Factors

  • Ownership praised for control: customizing, not asking landlords for permission, not worrying about eviction or arbitrary rule changes.
  • Others value the opposite: zero interest in home projects, relief in calling a landlord instead of managing contractors and permits.
  • Reported landlord experiences range from excellent to abusive; same for HOAs and condo boards.

Maintenance, Risk, and Rules of Thumb

  • Suggested to budget 1–3% of home value per year for maintenance; some report closer to 2.5–3% on average, others less.
  • Costs are “bursty”: multiple five‑figure items (roof, HVAC, drainage, structural issues) can cluster.
  • Several rent‑vs‑buy calculators and a “5% rule” (annual rent vs. home price) are referenced; consensus is that outcomes are highly location‑ and time‑dependent.