Own vs Renting

[Doctor Amadeus]

Do you Own or Rent and of the two which of the two do you prefer.

I prefer to Own, and I prefer to be where others own also. I started early so my house is paid for, but honestly, I am glad I did, saying up and putting my first 10% into the biggest purchase I have ever made in my life, growing up poor as fuck.

Owning something seem to give me more of an appreciation for not just where I lived but everything else around where I live.

[Fonduset]

rent until i can get a deposit then own. i would want to throw my money into nothing for as little time as possible

[Tommy T]

Depends on how you live.

Renting gives you more freedom to uproot and move around, but you're in essence paying someone else's mortgage.
Buying puts you on the property ladder and gives you more financial security when you're older.

Personally, owning suits me much more.
The downside is that it takes a while to build a deposit and get to an income level where you can be accepted for a mortgage.

[GreenJesus]

I am renting right now, but it's better to own.

[Player Twelve]

Rent because the landlord have to fix stuff if something breaks, if I owned my own place then I'd have to pay out of my pocket if something breaks. I'd also have to pay for garbage pickup and for heating. Cheaper to rent.

[chazus]

It scares me to death that I’m gonna buy into another crash, even though prices are still well below their 2007 peaks.

Why does it scare you, exactly? It's largely a good thing (not good for the economy in general though) for buyers.

[chazus]

Yeah but it's probably not gonna go any lower because a) Things got as low as they would during the crash. And B) It's only been starting to go up since ~2012..So... If you want to buy, buy now, or pay more.

Chances are, there won't be another crash. The whole reason it happened has been exposed, and probably won't occur (for that reason) again.

[Total Crica]

if I owned my own place then I'd have to pay out of my pocket if something breaks. I'd also have to pay for garbage pickup and for heating.

When you rent, your rent money pays to cover utilities you are using that need to be paid while you live there and to cover fixing things that break when you live there.

Do you actually think the landlord doesn't charge you enough rent to cover anything that breaks while you live there?

Do you actually think the landlord doesn't charge you enough rent to cover the garbage and heating bills?

There is only one fundamental difference between renting a home and owning a home - legal obligations.

The legal obligations of a home renter are different then the legal obligations of a home owner.

[chazus]

There is only one fundamental difference between renting a home and owning a home - legal obligations.

Well, that, and when you own, your money doesn't just get thrown into a black abyss :P

[nomorepriest]

I rent currently but own a few people's that I rent out.

[Total Crica]

Well, that, and when you own, your money doesn't just get thrown into a black abyss :P

Not really, since no one can predict the future outcomes of the area the home you own is in. *cough DETROIT, MI cough*

All one can do is HOPE (and furiously work to ensure!) that an abyss doesn't manifest in the future after tossing money into owning a home...

[chazus]

Not really, since no one can predict the future outcomes of the area your home is in.
All one can do is HOPE (and furiously work to ensure!) that an abyss doesn't manifest in the future after you toss your money into a home...

You are guaranteed 0% return on renting.

You don't have to 'hope' for owning. That's what insurance is for. And even if the land value drops, it can't drop so drastically that you get nothing.

I prefer "most likely 100%+ and a tiny chance of slightly less, and an infinitesimal chance of like 60%" than "definitely 0%"

[Total Crica]

That's what insurance is for.

Insurance isn't a return on your property. It's to ensure there will be money available to fix what breaks. It doesn't ensure there will be anyone around willing to fix what breaks... *cough DETROIT, MI cough*

[Player Twelve]

Do you actually think the landlord doesn't charge you enough rent to cover the garbage and heating bills?

Nothing compared to costs of buying my own place and then paying for stuff. Just electricity for the house my brother has costs about 144$ per month, I pay like 20$ in rental apartment. Then he has to pay for heating too, which costs an additional 180-240$. Then he has to pay for water and garbage pickup, which costs like 50$ per month too and if he breaks something, he has to cover it himself, a new washing machine? That costs a lot. My rent? 500$ per month.

His monthly costs just for heating, water and garbage pickup, electricity? 430$ BUT, this is a big BUT, he had to pay 180k$ for his house, which meant he had to take a loan. I haven't even gotten close to paying that in total rent yet. He's in debt for quite some time ahead, I'm not in debt. He pays 200$ per month on the debt. His living arrangements costs more than mine does per month and he doesn't get any replacement from a landlord if something breaks, he has to pay that himself. It will take like 30 years for my rent to cost the same as his house cost to buy. He changed the roof like 2 years ago too, cost of that for him out of his own pocket? 7000$.

[chazus]

Insurance isn't a return on your property. It's to ensure there will be money available to fix what breaks. It doesn't ensure there will be anyone around willing to fix what breaks... *cough DETROIT, MI cough*

Referencing Detroit or Flint or any other place that has literally been falling apart for decades is hardly an argument for land value. The absolute worst situation, a known one, isn't the 'standard'.

[Total Crica]

Nothing compared to costs of buying my own place and then paying for stuff. Just electricity for the house my brother has costs about 144$ per month, I pay like 20$ in rental apartment. Then he has to pay for heating too, which costs an additional 180-240$. Then he has to pay for water and garbage pickup, which costs like 50$ per month too and if he breaks something, he has to cover it himself, a new washing machine? That costs a lot. My rent? 500$ per month.

His monthly costs just for heating, water and garbage pickup, electricity? 430$ BUT, this is a big BUT, he had to pay 180k$ for his house, which meant he had to take a loan. I haven't even gotten close to paying that in total rent yet. He's in debt for quite some time ahead, I'm not in debt. He pays 200$ per month on the debt. His living arrangements costs more than mine does per month and he doesn't get any replacement from a landlord if something breaks, he has to pay that himself. It will take like 30 years for my rent to cost the same as his house cost to buy. He changed the roof like 2 years ago too, cost of that for him out of his own pocket? 7000$.

Yes, a home owner that doesn't rent out their home pays out of their own pocket. A home owner that rents their home out does not. You are renting someone's home (an apartment is a home) so that means you are paying for everything via your rent payment, not the home owner that is renting it to you.

- - - Updated - - -

falling apart for decades is hardly an argument for land value

I am arguing that owning a home vs renting a home doesn't create land value, people do.

[Player Twelve]

Yes, a home owner that doesn't rent out their home pays out of their own pocket. A home owner that rents their home out does not. You are renting someone's home (an apartment is a home) so that means you are paying for everything via your rent payment, not the home owner that is renting it to you.

They pay if something breaks or if maintenance needs to be done on the house.

[Lochton]

Currently renting; it is easier but limited. I would like to own a place but takes more to be able to do so, and holds more work - but it'll be yours.

[Total Crica]

They pay if something breaks or if maintenance needs to be done on the house.

Yes, they pay using your rent payment. I own a home and rent it out. I do not pay anything when something breaks, the rent payment does.

[melodramocracy]

Drawbacks of ownership are largely ones revolving around responsibility and flexibility. If you don't know that you're going to be stable in an area for a certain amount of time, and / or don't have a nice size down payment, chasing ownership can be incredibly costly.

Beyond that, it's in your best interest to own your shack.