Is owning or renting best?

re: Is owning or renting best?

SD — Wed, 19 Aug 2009 04:51:59 GMT

In my case it seems that the rent is much higher for a much smaller living space than a mortgage payment would be. I have5 kids (two are now gone) and I need a minimum of 3 bedrooms, but prefer 4 so that all kids can have their own rooms. That way the clean one doesn't have to take the downfall for the mess in the room. If you shop right then you can find a mortgage payment the same as the rent and you don't have to rely on the fact that the landlord will see to your every need. None to my experience in a house, do any kind of snow removal or lawn care. Plus all utilities are paid by the renter. Seriously, we all know about SLUMLORDS. I think the majority of landlords fit that bill.

If you have kids and intend to keep them in the same school district in which they started, then buy the home and raise them well. Worry about the rest later.

re: Is owning or renting best?

danhome@hotmail.com — Tue, 12 May 2009 03:03:41 GMT

Paying rent or paying mortgage, either way you're buying a house. Either the landlords, or your own. If I'm going to make a house payment, I'd rather it was my own.

re: Is owning or renting best?

Greg — Tue, 31 Mar 2009 14:21:54 GMT

I rent because I like to move around the country whenever I feel like it. When the urge hits (about every few years) I just pick up and move somewhere new. I am single with no kids or pets, so this is easy. Also, I sign leases for the fewest possible months then go month-to-month so that I have even more freedom. And today, I have 24/7 security, 24/7 maintenance, 24/7 concierge service, and 24/7 valet parking!

I once owned a house, and I did enjoy the maintenance and yardwork, so I do look forward to home ownership perhaps at retirement. But for now, I am having too much fun experiencing the world!

re: Is owning or renting best?

shut up — Wed, 25 Mar 2009 16:58:46 GMT

Re-read the post, "Sparky," (a.k.a Bill in Houston) and you'll see that I made no decisions for anyone. Renting is as valid a choice as owning, and you don't know whether I own or not. I know plenty of people who rent. So as far as "heed you (sic) own advice," let people decide for themselves. Get off the ol' high horse.

re: Is owning or renting best?

TN — Wed, 25 Mar 2009 16:36:02 GMT

There are benefits to both renting and owning. Each has its downside as well. In the end, renters need landlords and landlords need renters. It's nice to have a choice of which side to be on, especially when life can be so unpredictable.

re: Is owning or renting best?

Arimathea — Wed, 25 Mar 2009 15:31:15 GMT

We're buying the home we have lived in for 18 years. Yes, we do have to budget for maintenance and upkeep as well as pay the mortgage, property taxes, and insurance. But our mortgage is on a fixed rate. No rent increases for us. No "surprise, the building's been sold and the new owner wants to move his grandma in so you have to leave". No changes in rules telling us our cat is no longer allowed in the apartment or we have to get our barbecue off the patio. And in the foreseeable future (depending on how fast we can pay off the mortgage) we will own the house free and clear and our living expenses will drop because we will then only pay taxes, insurance, and maintenance. I would far rather buy and stay than rent forever.

And for those who have found themselves between jobs in this economy, it takes several months for a foreclosure to be processed, during which time you may be able to figure out a way to pay your mortgage. It takes only three days for a notice to pay rent or quit to be posted on your door. Being a buyer rather than a renter also buys you time in case of an unforeseen cash flow crisis.

re: Is owning or renting best?

Single and a Homeowner — Wed, 25 Mar 2009 14:23:08 GMT

Hey grumpy, I'm single, no kids and I am a homeowner. Someone's marital status should NOT be a factor in becoming a homeowner.

re: Is owning or renting best?

Bill in Houston — Wed, 25 Mar 2009 10:50:12 GMT

Hey "shut up," SAVE FOR A DOWNPAYMENT if you can't afford one. Be willing to move farther away from work if it means affording a house (do not, however, move to a riskier neighborhood where the problems outweigh the benefits. As for retirees, I'd recommend downsizing to smaller property. Renting is throwing money away, just like car leasing (unless you own your own business).

Yes, I'm being judgemental. So are you. Gee, holy cow. Don't make others decisions for them? Heed you own advice, Sparky.

re: Is owning or renting best?

grumpy — Wed, 25 Mar 2009 10:03:50 GMT

Does anyone really own their property? Try avoiding property taxes and see how much title/deed to land and or homes means.

That said, in most cases, for folks who do not move or with families with more than 2 children, owning a home is the better choice, provided the cost of the mortgage is less than 25% of net (after tax) income, assuming no other debt. This puts a lot of current ""homeowners" (more like slaves to the bank) in a quandry as debt costs ususally eat up any appreciation of property.

For singles, and for those who tend to move a lot due to work, etc, buying may not be the best option.

re: Is owning or renting best?

Chris — Wed, 25 Mar 2009 01:20:13 GMT

The actual transaction costs are 9.07% in the US. I'm not sure where you got 5% from.