Buying or Renting?

Discussion in Mortgage & House Payments started by anniep1978 • Sep 10, 2012.

  1. anniep1978

    anniep1978New Member

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    What is more beneficial? We're really looking forward to moving and I feel like we're really stuck with this house and maybe it would have been better if we rented. Slap some sense into me please! What would you rather do...buy or rent?
     
  2. Jennifer

    JenniferActive Member

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    Good Question. My husband and I were discussing the exact same thing last night. We own our house but because everyone is struggling, including ourselves, and our bond repayments are so high, we are considering renting out our home so that the rental income can cover our bond. In the meantime we would rent a less expensive house just till the economy improves again. In that way we still have our home.

    We have not yet discussed all the pros and cons but on the surface it seems a good idea. Personally I would prefer my own home as it gives you a feeling of security knowing that no one can kick you out of your home. The other benefit of owing your home is that you can renovate it the way you want it to be instead of being stuck with awful carpeting or a bathroom that you dislike and can do nothing about because it is a rented house.
     
  3. scottyxx

    scottyxxExpert

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    I think if you are in an area you like, and want to settle down buying is the best option, your mortgage is likely to be the same as renting, and you are getting something back. If like me, you are unsure of your future and where it might be, renting is the best option, as you do not want to be tied down with a mortgage hanging over you.

    Owning a house is a good investment, especially if you live near a University, you can buy a house, rent out the basement and get your renter to pay off your mortgage for you :)
     
  4. anniep1978

    anniep1978New Member

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    Thank you for all of the great responses! They have really given me more to think about.

    I think we will definitley start planning on buying in the near future.
     
  5. Sandra Piddock

    Sandra PiddockExpert

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    I think it depends on your time of life. If you're young enough to have many years left to you, buying is always the best way. Even if you have to struggle to pay the mortgage, you would probably be paying a similar amount as rent, and at least your house is an asset for your future.

    Several of our retired friends in their 70s are seriously considering selling their house and then renting a property and investing the proceeds from the sale of the house. It makes sense in these straitened times. We're thinking of doing the same when the house prices improve.
     
  6. hunysukle

    hunysukleActive Member

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    It's all up to you, but paying rent is like flushing money down the toilet every month. In my opinion, it's best to invest in one's own property, but only if one can afford it. Of course a person would have to afford the down-payment for a home, but after that a monthly morgage is sometimes very close to the price of a lease. So, it often makes more sense to own than lease. However, there are many factors to consider, such as if you want to settle down and take responsibility for a home and if you can afford it.
     
  7. biddyb

    biddybNew Member

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    Buying or renting depends on your situation, whether you are ready to settle in one place for at least five years. Otherwise you will be better off renting if this is the case. Buying most definitely has so many advantages. Aside of the pride of homeownership, think about the tax break where you get to deduct the mortgage interest and the real estate taxes when you file your income tax returns. Paying money into a rental apartment certainly doesn't give you that benefit.
     
  8. sidney

    sidneyWell-Known Member

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    If you can afford it, then you should try to just buy your own home, because renting seems to be just throwing money away every month, unless it's the rent to own type of house. Owning your own home gives you a sense of fulfillment and security, especially if you intend to settle in a certain place permanently. If that's not the case, then you can just opt to rent a home.
     
    #8Aug 7, 2014
    Last edited: Aug 7, 2014
  9. Denis Hard

    Denis HardWell-Known Member

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    When you're staying in a place for a long time and you have the money, buy a house. If you don't have the money but will be staying in a place for a long time, find a cheap place to live in and start saving money so you can buy your house a little while later.
     
  10. deathbyprayer

    deathbyprayerActive Member

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    Okay it's a matter of settling down. Do you like the environment? Do you think you can live there forever? If the answer to both is yes, then I say you just buy it. But if you think the place is just something to sleep on at the end of a day's work then just rent it. Or you can try and find places where they offer 'Rent to Own' deals where you rent the house for a certain amount of time and then it's all yours.
     
  11. klassiter

    klassiterActive Member

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    I feel that I am in the same situation and I am not sure what to do. I currently have my house up for sale. I am also looking forward to moving. Once I sell my home I am trying to decide if I want to purchase another home or rent. My husband really wants to move further south. I would like to stay in the same area because my son really loves his school. Because my husband want to relocate in the future I think it will be better for us to rent at this time. Once I am in an area that I know both of us are happy with I would really like to own a home again.
     
  12. TuRon Davis

    TuRon DavisActive Member

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    It really depends on the person, because everyone has their own lifestyle and financial situation. Naturally, it's always better to buy because when you own, you save plenty of money by not have to pay mortgage or rent, but rent cab have it's perks because you can up and move whenever you want. I currently rent due to me being single and living close to my job, but my dream is to own my dream house.
     
  13. PhilA

    PhilAMember

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    From a financial standpoint you are way better off buying generally speaking. Obviously you need to buy smart and choose somewhere that will increase in value. You cannot always predict the market accuracy but you can avoid some of the obvious mistakes.

    I have been very fortunate, I bought a house early in age, I was around 20. 10 years later I had paid off around 1/3 and the house had increased market value by about 50%. I was able to sell up and buy my dream house. This would never had been possible by any other form of investment as far as I know.

    Now I am looking to buy a second home to rent out, rent in the UK is higher than a mortgage so it will pay for itself.
     
  14. Strykstar

    StrykstarActive Member

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    I think it has a lot to do with you job situation and whether your job is one that might have you relocate some time in the future.
    If you're going to stay in the same area of the country for a decade or more, I say you should be looking into buying a house there, but if you feel your situation might change and you will need to relocate, then I'd look more into renting.
     
  15. Mayvin

    MayvinActive Member

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    People are saying that buying is a much better investment than renting and you can borrow against your mortgage, and get tax benefits when filing every year so there are definite benefits to owning a home. Although there are benefits to renting as well, if your not spending too much money on rent the low maintenance of not having to deal with home repairs can be a benefit.
     
  16. ExpertAdvice

    ExpertAdviceActive Member

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    Often times, we are cultured into thinking that renting a property is a bad thing to do or a position that should be last resort, but, renting a property is one of the best decisions that you can make if your circumstances demand it, one should also be careful of renting properties that they can hardly afford, I have heard of this story far too many times. Buying a house is of course an investment that all should consider, but if you are not yet financially at that place to buy a house then renting is just as good. Be careful of powers of sale and eviction too!
     
  17. Sunshine

    SunshineActive Member

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    Buying a house in some parts of the country is not the guaranteed investment it used to be. Many homes have declined in value or remain stagnant. There is no guarantee anymore that you can sure to make a profit when you sell, in fact in many places people are losing their initial investment by getting less than their original purchase price.

    Buying a house now a days can be a risky thing to do unless you are certain you'll be remaining in an area for a long time, AND that area is not going to depreciate (from school scores going down, etc.). So in some instances renting can be a much wiser move.
     
  18. thenextGeek

    thenextGeekActive Member

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    If you're still young, and you are living somewhere where you don't think you'll end up retiring then go and follow the renting route since you will transfer to another place anyway. However, if you are at the point in your life where you want to settle down then buy a house. Just make sure that you are fully decided on the house that you will be getting because they cost so much and one or two wrong decisions will hurt your financial status for years to come.
     
  19. hellavu

    hellavuActive Member

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    Like other mentioned -- it's about you. Yes, renting brings you nothing in the long run -- but it is also more flexible. You are not burdened with a property; you do not have to care for it, as it falls on the landlord; if the property loses value, it is not your problem either. Buying used to be a major investment -- I believe it still can be. But you have to be more aware, and also conscious that the context might change and that your investment loses value over an upcoming crisis or redesign of a city.
     
  20. Teri Rose

    Teri RoseNew Member

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    It definitely depends on whether or not you plan on settling down in that area for a while or not. My husband is in the military so buying a house never really crossed our minds because we move every couple years. Sometimes renting can be a pain though, at least for me, because anytime we've renewed our lease the monthly rent payment goes up. I honestly don't understand that but it's happened with the last 3 properties that we've rented. In 2013, we made the decision to buy a house since we do have 2 kids and actually love the area we are currently stationed at. He was set to get out of the Army that year which is why we bought the house but of course he ended changing his mind and signed on for 3 more years. Now I am actually stressed we bought our house because now we have to worry about renting out our house while we move to another army base. My fear is that we will have a difficult time finding someone to rent our house because of the monthly payment or if we do get it rented out the family wouldn't take care of our house. Either way just make sure you really think about your decision.