To rent or buy?

Re: To rent or buy?

• englishtrish1 member

  

  November 2014

  I'm probably in the minority, I don't necessarily consider renting to be throwing money away. I think unless you plan on living in the area at least 5 years then renting is the way to go

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• Sisugal member

  

  November 2014

  You are not throwing your money away - your rent money gives you a roof over your head and leaves all the responsibilities to your landlord. If you feel you are loosing money by renting - then rent a place that is less costly - not something that has all the bells and whistles.
  
  In today's market - it takes 7 years (in most loations) to break even with buying and selling costs -
  What ever you do - do NOT look at a house as a money maker!!
  
  Are you even prepared financially to buy a house?
  Have 20% downpayment?
   6 month's expenses in an emergency fund
  moving costs?
  utility start up costs?
  repair/renovations in hand?
  decorating/additional furniture/appliances ready to pay cash for them?
  tools, ladders, garbage cans, hoses, yard care items?
  deck furniture & grill?
  
  Owning a home is much, much more than a mortgage payment.
  
  

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• JaydenUSR member

  

  November 2014 edited November 2014

   When I first considered buying a house, my entire family got involved. I have the luck of being related to real estate agents, investors, and other experts that are more than happy to give advice about buying a property. 
  

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• JaydenUSR member

  

  November 2014

  When I first considered buying a house, my entire family got involved. I have the luck of being related to real estate agents, investors, and other experts that are more than happy to give advice about buying a property. 

  
  

  The first thing they asked me was exactly how long I expected to stay in the house. They say there's a five year rule for buying a house. When you purchase a house, the general rule is that you want to be sure you’ll be in the same location for at least five years. Otherwise, you’re probably going to take a hit financially.
  

  
  

  The first hit is your closing costs. Every time you go through closing — buying and selling — money hits the table. Depending on where your house happens to be, the buyers and sellers pay different amounts, but everyone pays something. This can easily add up to thousands of dollars, and limiting how often you have to pay that kind of money is always a good idea. 

  
  

  And you take a second hit when you look at your mortgage statement to see exactly where your monthly payments are going.  Usually, it isn’t until you’re about five years into paying down your mortgage that you’ve made enough progress on the principal to make it a better deal than paying rent each month.
  

  
  

  If you can wait at least five years to move, you’re in a better position to be ahead of the game.
  

  
  

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• Xstatic3333 member

  

  November 2014

  Ditto PPs-rent is definitely not throwing your money away, and a house is not an investment.  It can turn out that way, if you're lucky, but I'd wait to buy until you are more certain of your plans.  In the meantime, you can save a great DP plus an emergency fund and closing costs, and enjoy the freedom that renting brings.  

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• dutchgirl76 member

  

  November 2014

  I'm a big fan of buying a house over renting since a lot of places in my area are almost the same price, however, once you buy a place you're stuck there. Are you happy with your location? Do you have the chance to move for your career or for a personal reason like you want to live somewhere warmer? If you're not married you may want to wait too, not have to sell the place later to buy something with your husband or wife. Is this place close or far enough away from your family for you?

  
  

  Another option is a condo if they're cheap enough in your area, but you're still paying a mortgage and you still have to sell it or rent it down the road.

  
  

  My husband and I got lucky by finding a mortgage rep at a private company (not a big Bank of America company) who ran the numbers and really broke down what buying in our area would cost. That and some other factors kept us from buying for another year, more time to save up and commit. to the area.

  
  

  What about renting one more year? In that time, research school systems, crime rates, job opportunities and make sure you really like it there. Save up what you can too, that way if it works out and you buy you have more for the expenses listed above.
  

  
  

  
  

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• TheMadHatter93 member

  

  November 2014

  I am a renter all the way - in my area it is a lot more expensive to own a home than it is to rent an apartment. I don't think renting is throwing your money away unless you are spending the same amount that you'd be spending on a mortgage/bills/upkeep. 

  
  

  For us we also live in a town that is dependent on mining, and out mines are running out in the near future. So right now it is unwise to buy a house in an area like ours where it is uncertain if you'll be able to afford or even sell the house if we lose the mines, at least with renting there is more freedom with being able to pack up and move on. 

  
  

  Another factor we have is our goals. To buy a house we would need to have that as our primary goal for the next 5 years to have enough money to even make it possible, during that time there would not be able to start trying for children and would need to wait a couple of years after purchasing to try for a baby. To us is is more valuable to live in an apartment and start our family sooner than buy a house and put it all on hold.

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