'I feel trapped': Frustrated homeowners overwhelmed by 'exploding' costs at every turn

25 February

Many ex-renters who became homeowners have a long list of reasons why they are glad they made that transition, from landlord horror stories to high rents to the lack of equity that comes from renting. As they see it, renting is a huge waste of money.

But journalist Jedidajah Otte, in an article published by The Guardian on February 25, takes a look at frustrated homeowners who have a very different perspective. According to Otte, homeowners interviewed for the piece believe that " the dream of owning a home" has become a "nightmare" thanks to factors that range from "elevated mortgage and loan interest rates" to "rising property taxes" and "exploding home insurance premiums."

Otte reports, "Homeowners who had assumed their properties would become valuable assets and provide security described their homes as 'money pits' and 'financial burdens,' and said they felt stuck in homes they could barely or no longer afford, with insurance, taxes, utilities and maintenance now often costing more than people’s mortgages."

One of the homeowners interviewed, 60-year-old Maryland-based office manager Meg, said that housing now takes up 50 percent of her income.

Meg told The Guardian, "I bought my home in a hurry in 2020. It was less expensive to take on a mortgage than to keep paying ever-increasing rents for my college-student daughter and me…. I had to take out an additional mortgage to replace the heat and AC system. I keep increasing the deductibles on the home insurance to try to keep the premiums down. They ratchet up every year, while my income does not. I won't be able to do more repairs unless our circumstances change significantly."

Amie, a writer who lives in a rural area of Maine, told The Guardian, "Although my mortgage is reasonable, the price for anything else is causing considerable financial stress for my partner and me. Home oil costs are astronomical. The cost to make energy efficient repairs such as new windows, improved insulation, or heat pump installation are beyond our financial reach…. I recently had to create a payment plan for the electricity bills."

Amie added, "If we could build a small holding on this land and get rid of this house I absolutely would. It's completely overwhelming. I feel trapped."

Angela, a 60-year-old product manager in the Chicago suburbs, fears that increasing property taxes will make it impossible for her to retire if she stays in her home.

Angela told The Guardian, "I bought this house 19 years ago for $220,000. If I'm lucky, I can sell it for $300,000…. We have this huge tax burden here, it has really gotten out of control. Property taxes increased by $3100 last year. I now pay $8800 per year on a home I can perhaps only sell for $280,000. I'm in a better position than most people and make a decent salary today, $170,000. But I’m thinking: How do I afford these taxes in retirement? I'm cutting back on everything."

Read The Guardian's full article at this link.

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