Own vs Renting

[Z-Man]

4. I pay $980 for a 3 bedroom house, 1900 SF been here for 7 years, rent has gone up mildly.
5. The deduction isnt anything to jump up and down about. Taxes aren't deductible.

Housing market? Please. Its like playing Russian Roulette.

There are no $900 houses within a hundred miles of here. Most people with that kind of budget are sleeping in their cars.

Russian Roulette can be quite rewarding if you're the one loading the gun. I've made more money in the past decade from jumping houses than I have from working. Become one with the bubble, you must. (Property taxes are indeed deductible, and the mortgage deduction becomes very noticeable when the average house price is approaching $800K. It adds up.)

[Saucerian]

1. Houses are only investments if you are renting them out.
2. To really make money doing that you must own several, be lucky with property values, and/or have good renters. My first home lost a lot of value in the 08 crash and I looked into renting it out; determined I would basically net nothing, and with a lot of extra hassle on my part.
3. That said, it's a valid thing to own a house despite the expenses to enjoy the benefits of living in one. No shared walls, neighbors ideally invested in their own houses and the neighborhood etc.
4. It's still better than just putting money in a bank or mattress to lose value to inflation.

So basically unless you're carrying a 1% membership card, own your home only if you really like the idea of living in one. Otherwise invest your money in something better, like a sports car. (No, seriously. My first home vs sports car: sold both, the sports car had more equity.)

[Antiganon]

Renting is better when you don't have sufficient credit or income to justify a mortgage at a decent rate, you don't plan to live in a particular area for a long period of time, home ownership is overpriced in your area, or you want to eliminate the responsibility of routine maintenance.

Owning is better when you want to build equity, when you want to stay in a place long term, when you need more space than what is typically available in rentals, when rentals are overpriced in your area, or you want the freedom to modify your home as you see fit.

I am currently renting. The place is run down. Various electrical outlets do not work, lights flicker occasionally, the oil furnace has had some issues, and there is mold on the ceiling in several rooms. The landlord refused to fix the electrical out of his own pocket because "I signed the inspection and knew what I was getting into". The oil furnace has been recently inspected and seems fine for this season, but I am 100% not dealing with another winter in this house if I can avoid it. The landlord claims he has paperwork from the state that the mold isn't really mold, but refuses to provide any proof for these claims.

I will be breaking my lease and buying a house as soon as I am able. If he tries to keep my security deposit, I will be suing my landlord.

Not a great position to be in.

TL;DR - Either is fine, renting is better short term, owning is better long term, just make sure if you rent your landlord isn't a complete scumbag.

[Jotaux]

Wrong. Renting you are paying rent. It's like a subscription. They provide you a place to live, you pay monthly (or weekly whatever). Service rendered payment received. It's completely irrelevant what they spend their money on, yes, their money, not yours.

This is an odd thing to take issue with and irrelevant as to whether its better to rent or own.

[Elim Garak]

This is an odd thing to take issue with and irrelevant as to whether its better to rent or own.

You brought it up as a negative to renting.

Renting is better, unless you really want your own place for whatever reason.
When you die your house stays, you will not be buried with it. So it's a waste in the end. The equity you gained is for nothing. You instead will be better off spending that money on YOU, while you are still alive.
You don't really need to own a house or apartment to have a happy and joyful life.
Most commonly owning is pushed by women who are your girlfriend/wife/mom/sister, because women are material beings. Can you imagine marrying one without your own place to live in (have a family in) and staying married for long?

So if that's your goal - go ahead and own. But it's not better. It's a prison or anchor.

[zenkai]

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.

I own and I always come out ahead when I sell.

[Doctor Amadeus]

I own and I always come out ahead when I sell.

Yeah, I agree, I think the only downside is that it takes a while to do everything either buying or selling. However considering it's one of those rare things, I would do meaning move or sell a property, it's alright. Just takes patience and organizing for a few months.

Unless you live one of those places it's hard to sell anything.

[Deleted]

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[Z-Man]

1. Houses are only investments if you are renting them out.

My house is far bigger than what I need to live in, intentionally. I figure half of my mortgage is for a place to live, and the other half is buying a seat the table for the housing bubble. So far my equity gain seems to be outstripping any other investment I could be making. I figure I've got one more flip coming up, then it's time to start looking at cashing out and moving to somewhere cheap and depressed.

[Deleted]

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[Logwyn]

Own. Made no sense to rent when I could afford a house. And now its about tripled in value since purchase.

[Ghostpanther]

Reading through the comments here i'm guessing most of the posters are from the states. It's crazy how different it is compared to where I live.

First, if you don't own a house outright and you're still paying off your mortgage the bank usually doesn't allow you to rent it out.
Second, our renters rights are strict and enforced. If you rent out your house for more than a year the contract becomes permanent. It's really hard to get rid of someone unless they breach the rent contract. There's a big chance you won't be able to sell your house unoccupied which obviously devalues it.
Third, people generally make profit in the housing market by investing in areas that are being developed. You buy a house, restore it, and let it sit while the area becomes more desirable and then sell it when prices surge.

Some good points. Location is very important. Not only on if you can afford to buy a house, but how much you will get if you try to sell it. And how much the taxes will be. My success with buying, may have had a more negative outcome had I tried it in some parts of say, California. Here in Ohio, my purchases have been very successful based on value later in return. Double and triple.

[Skandulous]

Only thing that makes money in renting is vacation rentals. What you guys pay in rent for a month i make that in a week. I average about 1100$ a week for a 4 bedroom 3 bath home with a pool on the water close to the beach. The house stays rented out almost all yr round and the renters have money and respect so maint and upkeep is minimal. The other way of making good money on rentals is to be a slum lord who owns apt buildings or duplexes. Just renting houses is low profit and usually not worth the haggle and youd be better of to just sell the house and take the cash.

- - - Updated - - -

1. Dont live in a apartment. Rent a house in a good neighborhood.
2. House again, no wall pounding.
3. Again house.
4. I pay $980 for a 3 bedroom house, 1900 SF been here for 7 years, rent has gone up mildly.
5. The deduction isnt anything to jump up and down about. Taxes aren't deductible.
6. I already am. Roof was just replaced on this house and it was $14k I didnt have to spend!...woo hoo.
Housing market? Please. Its like playing Russian Roulette.

What city do you live in i would like to check zillow and the local market there because either your getting the best deal ever on rent or you could own the same house for the same payment or less. Home owners insurance and appliance insurance pays for alot of my stuff when it breaks i just pay a measly 500$ deductible. You can homestead your house and taxes are slashed and you can deduct the mortgage on your taxes at the end of the yr.

[Elim Garak]

Why? How? Why not? What??

It takes at least two to rent out. Landowner and a tenant. Can you figure the rest?

Subscriptions work well in cases where something is consumed, in such a way that leaves the good(s) no longer able to be consumed by someone else.

Getouttahere and take your silly attempts at redefinition with you.

Go consume WoW or something, i don't know.

And it is NOT their money. It is YOUR money first.

It's their money the moment it parted your hands. You get a place to live, they get the money.

[Jotaux]

You brought it up as a negative to renting.

Renting is better, unless you really want your own place for whatever reason.
When you die your house stays, you will not be buried with it. So it's a waste in the end. The equity you gained is for nothing. You instead will be better off spending that money on YOU, while you are still alive.
You don't really need to own a house or apartment to have a happy and joyful life.
Most commonly owning is pushed by women who are your girlfriend/wife/mom/sister, because women are material beings. Can you imagine marrying one without your own place to live in (have a family in) and staying married for long?

So if that's your goal - go ahead and own. But it's not better. It's a prison or anchor.

You do know you can sell the house when you move right? You literally pay less per month on the mortgage compared to renting and are then able to recoup, or in the majority of cases make a profit. If I were to rent the place I am living in now I would be paying 1,600 a month, my mortgage is 950. Why would I ever rent?

[Elim Garak]

You do know you can sell the house when you move right?

You can try to sell it. And even if you sell it - it won't be in an instant. It is also a hassle and taxable.

You literally pay less per month on the mortgage compared to renting and are then able to recoup, or in the majority of cases make a profit. If I were to rent the place I am living in now I would be paying 1,600 a month, my mortgage is 950. Why would I ever rent?

Why just a mortgage? How about property tax? Maintenance? All that is on you. While if you rented - all that would be on the landowner. Eventually you will waste more money on your property than if you rented, also you can easily rent something cheaper if money is an issue, you cannot as easily sell the house and buy a new cheaper one - which will suck even more money from you because of its condition at purchase (cheaper right?), most probably you will just sell at a loss and start renting until you can repeat your mistake again (to keep your wife with you).

[yetgdhfgh]

Own by far!

In my state of Arizona we have to have a house inspection every 3 months if you are renting and me, my dad and stepmom fucking hated it having someone invade our personal space every 3 months.

Thankfully we own our own home now and i do understand why they do the checks but still its something i can do without plus in our own home we can decorate it any way we fucking please plus its not dead money you are throwing away with renting.

I do see the advantages of Renting cause everything that breaks down its the owners or the management companies job to repair it and thus doesnt come out of your pocket but if you are planning on staying put for a long time then buying sure is better than renting imo.

[Hooked]

I own a home in the California bay area, the problem is the property taxes are like 10k a year and at the same time they are moving tons of illegals and refugees into my city. Property taxes should decrease if they are destroying my property value in my opinion.

[Deleted]

Own a house, don't own an apartment, since most of the times you will find shitty neighbours either under you, on top of you or next to you. With a house it's different, more space between you and them, less likely you will hear them having sex, kid screaming, loud music, fights, trash in shared spaces, dirty elevator, etc.

[Hooked]

Own a house, don't own an apartment, since most of the times you will find shitty neighbours either under you, on top of you or next to you. With a house it's different, more space between you and them, less likely you will hear them having sex, kid screaming, loud music, fights, trash in shared spaces, dirty elevator, etc.

Good fences make good neighbors. Its the truth.