Is it worth buying a house? Or renting?

Discussion in Mortgage & House Payments started by brentcsi101 • Apr 27, 2012.

  1. racechick79

    racechick79Active Member

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    I, too, feel that buying is better - but only in the event that you have the money to put down and into the house. I have seen way too many people get in over their heads. Now is definitely a buyers market, so if you have the money, I would definitely put in the investment. We did and were very happy with the outcome!
     
  2. Kaycee J

    Kaycee JActive Member

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    It is a good time to buy, and that is probably a good goal for most people, but you need to be in a good position, too. If you are drowning in debt already, you should deal with that first. There are lots of extra expenses with home ownership, and you want to be in a position to pay that mortgage without fail every month no matter what else happens. You need to be very realistic about what you can afford so that you don't talk yourself into something that ends up leaving you feeling broke all the time. Also, if you are moving to a new city, it might be a good idea to rent at first so you can get an idea about where in that city you really want to live. The schools in the area, the traffic issues, local government policies and even things like local water and sewer rates are all things you will be better informed about if you don't rush to buy in an unfamiliar place.
     
  3. dexterlablab1

    dexterlablab1Active Member

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    It's worth buying a house for sure. Right now, you can get some very nice houses really cheap. The flip side of this however is that you better be SURE of the house you want. And I say that because the the world in the financial shape it's in, it's not a good idea to sell because regardless of how nice your house is, you might have to sell for less than the actual value of it.
     
  4. imokaye

    imokayeMember

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    I'm only a student right now, but in my opinion, it's better to buy a house, to invest. When you rent a property, your money gets nowhere. If renting was better, why do almost all people aim for owning a property?
     
  5. Mrs. Rogers

    Mrs. RogersActive Member

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    I don't see the point in renting at all. To me you're just throwing money into the wind. We built our own house that is worth over $200K and I only owe $45K. I could make a ton if I ever decided to sell.
     
  6. Farrah

    FarrahActive Member

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    I think if you are in the position to buy, now is the time to do it. It is much cheaper than renting. But remember to keep money aside for emergencies. Plumbing and electrical issues can happen over night and without warning. I am thinking of buying again. Now that they have made it easier again.
     
  7. dexterlablab1

    dexterlablab1Active Member

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    Buying a house is worth it right now ONLY if you know you're going to keep it. Reason being, it's hard to sell houses at their proper values right now. However, as a buyer the market is good because you can get houses on the cheap.
     
  8. ValerieAnne

    ValerieAnneMember

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    Thank you all for this information, as I've been wondering the same thing! I really want a house so I can actually say I own something plus I don't want to pay somebody else for the rest of my life. Then again, I don't want a yard, and I may not like the area longer than a year so I've been going back and forth. What are your thoughts on a rental property house?
     
  9. Coffeeaddict

    CoffeeaddictNew Member

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    I prefer buying a house than renting. The problem with renting is that you're paying monthly for something that won't be yours, even if you've been paying for it for 50 years now. If you have your own house, whether or not the value of the house depreciates, the land will surely appreciate. So it is still a good investment.
     
  10. ssamcd

    ssamcdMember

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    In the long run it is definitely better to buy than to rent. When all the homes were being foreclosed on, the rent seemed to get very high. If you own not only will you increase your equity over the years, but you also have a tax deduction on your interest. Talk with your realtor and check what the homes were worth going back to around 2006. You should be able to get a home for less than that value now. :)
     
  11. Gamrpro

    GamrproMember

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    To be honest, I think it depends. If you're planning to stay in the house for a very long time then go buy it. If it's for a short period then definitely rent. For example, if you're looking for a house to live in for the rest of your life definitely buy it or build your own! :D
     
  12. Pat

    PatWell-Known Member

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    There are benefits to owning your own home and there are benefits to renting. You have to decide what you are looking for and what you need to meet your goals. Owning a home comes with responsiblities, like keeping the property up, cutting the grass, making repairs as needed. Benefit would be a tax write off for taxes and interest paid, do you need the tax break on your income taxes? Property goes up in value you get the benefit.

    Renting you have no control on the increases in rent, who moves into the building, no tax break or write off on your income taxes. The property goes up in value you do not get any of the increase in value in your pocket.

    Owning a home is not for everyone, it is alot to think about. Do your research and take your time to decide.
     
  13. happyrocinante

    happyrocinanteBanned

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    It depends on your situation. If you are planning on staying where you are at for a long time then yes, spending that money on something you own is better. I personally got pretty lucky. I bought (still paying on it of course) a house for the same monthly payment I was spending on rent. It is a little tougher having to do upkeep myself but you are making an investment. I agree with a previous poster about how it is important to pay that debt off as soon as you can. I don't ever plan to refinance or take out a second mortgage or anything but most people never plan those things. And of course that is why a lot of people make decisions to buy because it is something you have that can help you out of a hole when you dig one. I could get into a major financial crisis and sell my house to pay it off if I had to. When you are renting, that option is never really available to you.
     
  14. S.O. Price

    S.O. PriceActive Member

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    I can only give an opinion on whether or not it would be a good idea to buy a home in the U.S. 10-20 years ago I would have said definitely buy a home if you can afford it. At this point with our economic future still so uncertain I would be extremely cautious about buying a home. Homes are still hard to sell so if you were to buy one, you should plan on owning it for quite some time. I would also say you should have a HUGE down payment, a loan with a fixed (low) interest rate, well-paying secure employment and you should not be overextended with other types of credit (student loans, credit card debt, etc.).

    I know some people think we have seen at least a small economic recovery since 2008, but I am greatly concerned about the value of the U.S. dollar and the monstrous amount of debt that this country owes to others. I think there is going to be yet another axe that will fall and we will suffer economically from it like we've never seen before. Therefore, it is really hard for me to advise someone to commit to a long term mortgage at this point.
     
  15. Esperahol

    EsperaholActive Member

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    It will depend on what you can afford, your probably future, and what you're willing to do. A house comes with many hidden fees, including paying for water/trash pick-up, maintence, and depending on state quite a bit in taxes. It's also a very-long term investment which can quickly grow to a crushing weight if you didn't properly negociate your mortage. That's what happened in the housing crash. Folks found their mortages doubling up over and over again until they simply couldn't pay it. Further what are your incomes? Are they something you can reasonably trust to continue for the time it takes you to pay off your house? If you lose your job what happens then? How is your health and/or the health of your spouse? If something happens will you lose your ability to keep your home? Are you likely to move within the next five years? These are all questions you need to ask if you don't want to find yourself losing out on money or in dire straits.
     
  16. suzeysplace

    suzeysplaceNew Member

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    Personally, I would much rather own than rent. Just recently remarried and at this time, we are renting and have been for the last 18 months since we married. He and I both have had past credit issues so we are working on those and trying to get to the point we can buy our own home again. Right now, the market here is definitely a buyers market, but even people with pretty good credit seem to be having a hard time getting approved for a mortgage.
     
  17. sandees

    sandeesMember

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    Owning is always a more ideal situation. Unfortunately, not many people can afford the mortgage payments, property tax, repairs and other expenses. At my age, I should be owning, but real estate in my area is pretty expensive. I know people who have great jobs, have a great salary and are still renting for personal reasons - mostly they do not want to be 'tied' down to a mortgage/property. They have other investments and take grand vacations every year. So, I guess it's really to each their own. Security or Flexibility?
     
  18. dconklin

    dconklinActive Member

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    I would say that it depends on the individuals. Now, unless you own your home outright, it is often cheaper to rent. By us you can rent for about $700 a month but if you bought a house, it would cost you over twice that amount between property taxes, mortgage, mortgage insurance, utilities and repairs. Landlords are responsible for repairs (unless you actually damaged the property) when you rent, when you own you have to pay for any repairs.

    On the other hand, the amount you pay on the house at least goes to a piece of property that you own and can do what you would like with. I believe it is a lot cheaper in the long run to rent, but then you don't own your property. I would also decide if you can afford locking yourself into the higher monthly amount every month to buy a house. There is a lot to consider and really only you can decide what is best for you.
     
  19. novasparker

    novasparkerActive Member

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    I think it depends on the person/family and what they are comfortable with. Renting isn't a bad gig. I know everyone says that you are just throwing your money out the window, but most of us will always have some sort of monthly housing cost whether its rent or a mortgage payment. If you are renting and something goes wrong, you make a phone call and its fixed. There's rarely any yard work and you don't have to wory about things like property tax hikes, insurance premium increases, etc. However, if you want to leave something to your kids and want a little more freedom in what you choose to do in your own home, then ownership is the right choice.
     
  20. arthur22

    arthur22New Member

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    I will choose to buy rather than renting because of the fact that every month you are paying a rent why don't you pay it for mortgage or foreclosure to have your own home.In Finland country many people use to choose to buy their own home which is been a good stuff in that country for increasing their asunnon myynti and this year i heard that single family home is one of the best seller and got a lot of sale.
     
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