Post # 1
I’ve lived in a house all my life, while FI has been in apartments almost his entire life. Both of us have the desire to live in a single home together after we get married, but I’ve been going back and forth between buying a home and renting a home. The other day he said he’d rather rent so that whenever anything breaks we can call our landlord, but still have the benefit of the space to spread out and the privacy. He also said when it comes time to potentially move we won’t have to worry about selling our house and can just pick up and go. I should probably also add that we will be living 700 miles away from where we’ve been living for the past 10 years, and away from our families. At this point we are still unsure how long we will be in the new area. It could be a few years, or it could be the rest of our lives! There are several different variables that are involved in us either staying in that area, or coming back to where we are from.
With all these things in mind, it seems renting makes the most sense at this point. But because this is such a foreign idea to me I wanted to see the advantages and disadvantages to both in your personal experiences.
Post # 3
He should learn how to fix things, first of all! But really, so much of this depends on the RE market where you live, how long you’ll be there, what your financial situation is, and so on…if you’re planning to be there for a long time and you won’t lose money in a house that you can afford (and maintain) then buy otherwise stick with renting.
We bought our house under market value in a strong market, we’ll always be here, the payments are 20% of our income, and DH fixes everything so it definitely made sense to buy. If I thought we’d be moving or that we’d lose money on our house then we would have kept renting.
Post # 4
- Wedding: October 2011 - Bed & Breakfast
I would definitely rent in a brand new area. Doing online research about a neighborhood and visiting it is great, but nothing tells you more about a place than actually living there for a while. Don’t tie yourself to a house in a neighborhood/city/state that you may end up disliking. Rent to test the waters, then buy later if you are certain that this is a place for you to settle down for at least 7-10 years.
BTW, I went from being a home owner to being a renter while we tested the waters in a new-to-us part of our home state. I hated being a renter, but it was the right thing to do. We test drove the area we thought would suit us, only to find out that what we thought we wanted wasn’t really right for us after all.
Post # 5
It all depends. I would say in your situation to rent for a while first until you know where you’ll be living long term. My husband and I have been renting for 2 years and will be closing on or first house in 2 weeks. This was great, because it turns out the city we thought we’d live in isn’t where we wanted to be long term. We’ll still be in the area, just about 45 minutes away.
Post # 6
If you plan to live in your home for more than 5 years, then there is more benefit to buying a home rather than renting (if financially possible). This website actually explains it much better than I could: http://www.nytimes.com/interactive/business/buy-rent-calculator.html?_r=0 With that website, you can actually calculate if buying or renting is better for YOUR particular situation. Check it out!
Basically, you have to weigh out your options financially. One way is to look at your “Price-to-Rent” ratio. Find two similar homes (one that is for rent, one for sale), and divide the sale price of one by the annual rental cost of the other. A ratio above 20 means that in your area, the monthly costs of ownership will exceed the cost of renting– which means renting is financially a better choice in that case. Check out that website and use the calculator to see what owning vs. renting might mean for you financially in a year.
That said, although buying might not always be financially more beneficial than renting, I think it makes the most sense because of the stability and freedom that comes with owning a home. When you rent, you’re at the mercy of your landlord. When you buy, any improvements that you make end up back in your pocket (if you play it right) if you were to sell your home down the line.
But it’s totally dependant on your situation and preferences.
Post # 7
Where I live, it is much, much more expensive to rent than buy. Rents went up, on average, 14% in the last 12 months in the San Francisco area. I’m happy to have bought at the bottom of a bubble and to have my costs locked in (our taxes do not go up here like in other areas – they are tied to the purchase price of the home by law).
We would pay $700 more a month to rent our home than to pay to buy it (including taxes, insurance and HOA). We are very happy we were able to buy!
Post # 8
I’d rather buy than rent because I want to be in control. I want to fix things when they break. I want to decide when I move out, get a pet, hang a picture frame, paint a wall…
Post # 9
- Wedding: January 2013 - Harbourfront Grand Hall
@Galang_Gyal: I would rent until you know if you’re going to be in the area long term or not — and then buy! Renting first also helps you figure out what neighborhoods you want to live in.
Not wanting to replace things is no reason to rent your entire life… I can’t wait to have our house paid off!
Post # 10
To me it makes so much more sense to buy than rent, especially in my area but it may be different for you. It just seems like renting is throwing away money that isn’t going towards anything or building credit, even if you won’t be there long. And I agree he def needs to learn to fix things himself! I’ve rented while in college but buying seems a much better option. You could get stuck with a bad landlord, switch owners, just problems you won’t want to deal with.
Post # 11
@Ellegee: @MrsN14: Thanks! He does fix things and builds things as well. He’s like a self taught engineer of sorts. But I think he was looking at the financial aspect of potentially throwing money into repairs (whether for parts or for a professional) and then the uncertainty of getting a return when you go to sell the house. We’ve both heard people describe a home as a “black hole” in terms of constantly throwing money in it, which has made him kinda ehh about it.
@fleetian4life: Thanks for that site! I’m going to check that out for sure.
@crayfish: Fixed taxes!? Omg that’s amazing
Post # 12
It depends on the current market, whether renting or buying is the more fiscally-sound choice. Buying isn’t always, especially when you realize that everything from a busted appliance to reshingling the roof to de-icing the sidewalk within the legal time limit all costs money (and time) and is all on you.
Another factor is how mobile you want to be. If you are moving around a lot, renting is much easier.
Final factor… how much time do you have to put toward maintenance? A lawn is nice… but it doesn’t maintain itself. If you were not obligated to fixing up and maintaining the house, what else would you be doing with that time (and money) instead? Sitting around bored wishing you had a lawn to weed-whack and a porch to strip and repaint? Then buying a house is for you.
I would like us to not only own, but build our own home eventually (I have a strong opinion on what material the water pipes should be made out of, for example). But right now? What makes the most sense to us is to rent.
Post # 13
Unless you know you are going to be there for 5-7 years, dont buy. Unless housing prices skyrocket, you will lose money after the closing costs and realtor commisions.
Post # 14
I’d rather buy because it’s cheaper than renting around here, and you can change things!
@joya_aspera: Final factor… how much time do you have to put toward maintenance? A lawn is nice… but it doesn’t maintain itself. If you were not obligated to fixing up and maintaining the house, what else would you be doing with that time (and money) instead? Sitting around bored wishing you had a lawn to weed-whack and a porch to strip and repaint? Then buying a house is for you.
Haha, I so do this.
Post # 15
Rent is very expensive in my area, so I usually vote to buy. But in your situation, I would rent. It’s a new area and you dont know how long you’ll be there.
Post # 16
@Galang_Gyal: if you even have the slightest hunch about having to relocate with in the next 5 years- rent. I am a firm believer in buying. With buying- in most cases you get your money back one day- with renting it goes out the window, never to be seen again. HOWEVER-buying something is more permenant. You really need to be sure of the location prior to purchasing.
Some positive to renting is- maintenance. You dont have to cut the grass, shovel the driveway/parking lot. When something breaks, it doesnt come out of your pocket to fix it.