Why don't people save up to buy a house instead of a mortage?

[Dhoward12]

Why don't people save up to buy a house/apartment instead of a mortgage?
You can live your parents until then, a mortage on average will cost over $100,000. SO why don't people just live with their parents until they can afford a house/apartment.

[Brandy Hunter]

A mortgage IS buying a house, do you mean pay in full?? Most adults want their privacy, plus.. free loading on your parents isn't very nice

[Mia001]

maybe, because some would never leave their parents home ?

[Brandy Hunter]

Plus

1,000 saving a month
(example) 200,000 mortgage (house)
that's 16 years to live with your parents.

[Zonny]

Most of us want to be grownups who don't freeload off mom and dad. Or at least that's not what I wanted to do. Most parents can't afford to support you till you're 30 anyhow.

[Jaysmom]

Most people have trouble even qualifying for a mortgage (in our area, anyways). We build houses, and even though I'm sure it would save a ton of money, 95% of our customers do not purchase houses with cash....okay 97%, lol. MLS has the average single famliy home (including condos) pegged at $338,896. Even 1 bedroom condos don't fall far below $175 000 - and those that do are definitely "fixer uppers"

I'm sure when houses were $50 000 this was a feasible idea, but unless young couples want to start raising families (and in many cases they would be finished raising that family) at their parents houses, this isn't a very likely scenario.

Besides, mom and dad need some alone time too!

[kanewtz]

Saving up to buy a house cash is not realistic unless you have family money or win it.

You'd never leave your house then. Plus a mortgage isn't that bad. It's part of life. The key is to pay it down as fast as you can and save $1000's in interest!

[Tantum]

Who the heck wants to live with their parents that long?? And I do believe my parents were running around naked the day the last of us moved out.

Actually, now that I think about it we COULD save a ton of money moving in with my folks... Can't say that they'd appreciate their grown daughter, her hubby & their 10 kids moving in with them...but it's only for 16 yrs or so right?

[Zonny]

If you've got to have debt, mortgage is some of the cheapest debt you'll ever have. Besides, you've generally got to pay to live somewhere (well, unless you're freeloading off someone). If you can afford to save enough for a decent down payment, you're not paying huge amounts more than you would for rent (although make no mistake, a house with mortgage, heating/cooling, maintenance, etc. costs more than most apartments).

[win-star]

A mortgage IS buying a house, do you mean pay in full?? Most adults want their privacy, plus.. free loading on your parents isn't very nice

In away it kind of even out for some people, as their parents come live with one of their child[s] when getting to a certain age.

[snuffaluffagus]

I could never have lived with my parents while saving for a home .

But, having said that, my boys are welcome to stay as long as necessary if they want to save for their first home. My older son, at 21, has worked full-time now for 3 1/2 years and, if he continues to budget the way he's been doing, he will have about a 50% down payment for his first house in another 2 years. He's been thinking about a duplex so that rent collected will go towards the remaining mortgage and not out-of pocket.

I think if children can, it's pretty wise to stay with parents in order to plan/save for their future...it doesn't necessarily mean kids will be around until they're 40 (although this mother hen would love that ).

[Zonny]

In away it kind of even out for some people, as their parents come live with one of their child[s] when getting to a certain age.

That's us now. My mother is 75, moved in with us last May. So far it's worked out OK. Some parts are great, in that she cooks supper for us nearly every night, and we have a built-in babysitter nearly anytime we want one. And she pays rent (at her insistence), so it gives us a bit more cash in our lives. Obviously there's drawbacks too, but mostly it's good.

[Valiant]

Family units have changed throughout the centuries.
There was a time when families basically occupied the same home or community; large homes and large families were common and the sons were trained to work in the family business.
But these days, people go where they need education and training, and then settle (often temporarily) where they can find employment. The family break-up rate is also an important factor, as families break up and relocate. Relationships are sometimes strained with extended families.
People are under more stress these days with very busy schedules, with both parents and even the older kids working, and the younger kids often in daycare. The old norm of home life is changing rapidly, and giving way to a hectic living style and pace. In this climate, everybody seems to be doing their own thing more and more, and there are constant changes to adapt to in sheduling home and work.

Nowadays, the price of a home is huge, and even with the fixer-uppers, a tremendous committment and monetary investment is necessary.
Has anybody seen that Dr. Phil episode, where he tells everyone that on the last day of school, his dad reached over and broke his dinner plate, meaning it was time for him to leave his parent's home and support himself. Now, I don't agree with Dr. Phil exactly, because I think in this day and age, family is more important than ever, and who's to say what circumstances may arise to change plans. Independence and self-sufficiency are what most parents are going to train into their kids, and there will come a time when the aging parents are going to need some of the care and attention paid back to them that they lavished on their children in their growing-up years.

I'd like to retire and save more money on my old age pension, then buy a little, old house in a little hamlet, and live there for the rest of my life, just hiring help as needed. But by then, the health problems may be too great for me; so although it is a plan, maybe it's not a realistic one.

People who have a mortgage should pay it down as soon as possible; otherwise, it's a staggering amount of money in the long run.

[gracesmommy]

um.. ??? so you would free load off your parents until you were, say 35? 40? then start your own life?

[DianneS]

Why don't people save up to buy a house/apartment instead of a mortgage?
You can live your parents until then, a mortage on average will cost over $100,000. SO why don't people just live with their parents until they can afford a house/apartment.

I can tell you don't live in Metro Vancouver where the average mortgage is probably more like $300,000 to $400,000 for a house and that assumes you have a very large down-payment as well.