Renting Vs Buying

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  • lpkitty
    lpkitty Posts: 45
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    I'd prefer to buy, but the rent on my house is about half of what my mortgage payment would be if I bought. It depends on what you really want and your financial situation. Unfortunately I live paycheck to paycheck and will probably never be able to buy because I can't save up enough for a down payment.
  • Superstar_81
    Superstar_81 Posts: 88 Member
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    I rent just now, I like not being tied to house with the option to move quickly if necessary (new job etc) in this economic climate. Plus like has already been said if I have a problem, my landlord has to sort it, not me :)
  • ArchyJill
    ArchyJill Posts: 548 Member
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    If you buy see it more as an investment in your quality of life and less as a financial investment. Too many people buy houses with this crazy idea that they will "make a profit", this thought process just leads to buying more house than you can afford/need/want and then when everything falls apart (housing bubble anyone?) you are left in a worse position than before.

    We own our home, free and clear, not because we are loaded (single income household here) but because we bought within our means and we live within our means.
  • travlinjess
    travlinjess Posts: 243 Member
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    Depends on many factors including financial goals, work stability, and lifestyle. For me, buying a house doesn't fit in my lifestyle. I moved from Mississippi to Alabama to New Jersey to Portugal within a 6 year span. Now we're looking at work in Norway and will most likely move again. We have the money for a downpayment, but there's a lot more to it than that. I like changing my scenery and usually get itchy feet after about 2-3 years….so I need to rent for the flexibility.

    Again depends on the individual's situation!
  • pennydreadful270
    pennydreadful270 Posts: 266 Member
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    This "rent is a waste" idea pushes people into owning at any cost. You don't own your home any more than when you rent, the bank does. I don't see rent as throwing money away, I see it as paying to live where I want and have someone else worry about the pipes bursting in winter.
  • LoveCR22
    LoveCR22 Posts: 75 Member
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    Because I'd be responsible for the upkeep of the home as well as the mortgage, I don't see myself buying a home in the future unless it was in entirely in full (which is unlikely, as if I even had a quarter million dollars I doubt I'd blow it all on a single purchase like that).

    I'll always rent.

    This.

    I've always rented and always will, I have no need to own my own house or the cost's that come with owning and it's never bugged me that my rent money is paying someone else's mortgage. I doubt my landlord is getting rich off of me just this winter alone our pipes froze twice, and the washer died to get them fixed took nothing more than 3 phone calls to the landlord to tell him.
  • digitalbill
    digitalbill Posts: 1,410 Member
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    A home, that is.

    What are your opinions, guys? I'm undecided and always hear "renting is dead money". Any insights?
    Renting is dead money.
    However, if you cannot afford the upkeep on your own house (plumbing, appliances, roof, ect), then renting might be your only option.
    My wife and I are both pretty handy so, most of the things that break in our house can be repaired by us.
    As far as loss of value is concerned, if you purchase a house that you love, in a neighborhood that you love, then don't worry about the value dropping. We just saw this happen in America between 2000 and 2010 but prices are going back up now.
    From what I have studied, this happens roughly every 60 years. Prices creep up and then, suddenly, they skyrocket for about 10 years, flatten out, and then drop.
    If you are looking to purchase a house right now, look 30 years down the road. That cute 2 bedroom with street parking might really suck if you get married and have a few kids.
  • cuterbee
    cuterbee Posts: 545
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    I've bought and sold several houses over my lifetime. I've never actually made any money when I sold a house. Repairs cost money, even if you do it yourself.

    However...I've learned how to do a lot of things owning my own home; I can have as many pets as I want; and I can do whatever I want to it. Having both rented and owned, I think it's unlikely I'd go back to renting unless it's a short term (one of the things I'd like to do after retirement is spend 2-6 months in various cities now and then; then I'd rent).

    If you want to own a house, my advice is get a 15 year loan. Then at least you have some equity; it's much harder to achieve that with a 30 year loan.
  • 5ftnFun
    5ftnFun Posts: 948 Member
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    While my husband was in the Navy, we moved around a bit, so renting was the way to go. Once he got out, we bought our house and raised our son in a neighborhood where he had friends & good schools. Now that the kid is 1/2 way thru college, we are now planning to down size in the next 3-5 years.

    Renting is easier as far as maintenance goes, but we've earned quite a bit of equity in our home over the years. The worst part about renting to me is that the money is gone & you get nothing out of it really. On the plus size, you have more freedom to leave & don't fork out money for maintenance. Our house needed a new roof: $5000, new heat pump: $8000, sick trees removed: $2000. You get the idea. One smart thing we did was to buy a house that was way less than what we qualified for. That helps us to afford the upkeep on it. I highly recommend this. I love my house because we've made so many wonderful memories here and truly made it "home." It'll be hard to leave when we do, but it really is more house than we need at this stage of our lives.
  • SquidandWhale
    SquidandWhale Posts: 259
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    I bought my house three years ago. It needed a total rehab (I come from a DIY family, and like projects), but it's in a desirable neighborhood with excellent schools; about to put it on the market and looking towards a $30,000 - $45,000 profit. I was looking more for a short-term investment, rather than living there for 20+ years, and really took my time researching housing prices for the area before buying. I also have roommate who covers almost 70% of my mortgage.

    I think that buying v. renting really depends on where you are in your life, and where you live. My area hasn't been as effected by the housing crash as others.

    I'm won't lie, I cried when my furnace went and I had to replace it with money I'd budgeted for a vacation. That's just homeownership.
  • TavistockToad
    TavistockToad Posts: 35,719 Member
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    A home, that is.

    What are your opinions, guys? I'm undecided and always hear "renting is dead money". Any insights?

    totally depends on your financial situation/family/lifestyle etc etc etc
  • 30Purple
    30Purple Posts: 252 Member
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    Buying a house in my area was cheaper than renting, so I rented for one year and then got the idea to purchase. Been here 10 years this summer. Greatest investment ever.
  • Greenrun99
    Greenrun99 Posts: 2,065 Member
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    I built a house a few years ago, when the housing market was really bad, basically got it for less than a 30 year old house was selling that needed work.. The housing market was so inflated in the early 2000's and now people are underwater on their houses so if you got money now.. Its a great time to buy cause the market is going to improve.
    Renting was nice cause someone else shoveled snow, or cut the grass and did all the maintenance but you were basically getting nothing back for your money... its more of an investment
  • peachfigs
    peachfigs Posts: 831 Member
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    This "rent is a waste" idea pushes people into owning at any cost. You don't own your home any more than when you rent, the bank does. I don't see rent as throwing money away, I see it as paying to live where I want and have someone else worry about the pipes bursting in winter.

    I can see it from that point of view too.

    Right now, they both have pros and cons and it's almost impossible to pick one or the other. Agh!
  • peachfigs
    peachfigs Posts: 831 Member
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    A home, that is.

    What are your opinions, guys? I'm undecided and always hear "renting is dead money". Any insights?

    totally depends on your financial situation/family/lifestyle etc etc etc

    I'm almost done with university, graduating in a couple of months, with lots of student debt and no down payment to buy an apartment with my boyfriend. My choices are either rent a place with him (then I worry about wasting money) or move in with my parents (who I don't get on with very much) to save money in order to buy.
  • dreilingda
    dreilingda Posts: 122 Member
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    Unless you are wealthy enough to outright buy a house (without having to take out a mortgage) then this whole "Renting is dead money" argument is not quite as powerful as people make it out to be. Have any of you actually looked at a typical amortization schedule? On a 30 year mortgage, for the first 15 years an insane amount of money goes to pay interest vs. principal. Most of your equity gains will be made through inflation and Federal reserve powered housing bubbles.

    I own my own home but the consideration needs more than just a bumper sticker slogan sponsered by your local Real Estate lobby. Financial choices of this magnitude are rarely that simple.
  • Agent575
    Agent575 Posts: 8 Member
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    Renting sucks....if you can take a 15 year mortgage and bust your butt to pay it off as fast as you can. Having a paid for home trumps renting easily.
  • taz69tazz
    taz69tazz Posts: 57
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    renting is a total waste of money ... my husband and i working on buying our 4th hse in the last 13 years... put ur money in something thats going be urs in the long run ....buying is usally around the same price range as of buying :drinker:
  • Heaven71
    Heaven71 Posts: 706 Member
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    Always factor in repairs as well. When you rent, someone else pays for major repairs...ie roof, floors, siding, HVAC. Though you are also at their mercy as to a timeframe and the quality of repairs.

    I have always rented but recently moved in with my SO and he has been in the same house for 20 years. Last year, we put a roof on 5,000.00. The HVAC system needs to be replaced and the whole house needs updating BUT we do these things on our time and decoide what quality of work we expect and are willing to pay for.
  • Still_Fluffy
    Still_Fluffy Posts: 341 Member
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    OP - If you have no money to buy then there no question. Yes, living with your parents may suck, but if you can live with them for 18 month and save the $1,000 a month you spend on rent then in 18 months you could but a home. Since you’re just leaving school, I’m guessing you don’t have 2 years of steady employment where you would make enough to qualify for a home loan. I would recommend you suck it up and live at home. Save you money. Sacrifice now to give yourself a better future.

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