Post # 1
Fiance and I have discussed the pros and cons of renting several times, and we’ve always agreed that buying would be a better option, we feel like renting may make us unable to save money (due to having rent/utilities to pay), and it wouldn’t be worth it, etc.
However I’ve been browsing apartments and doing the math, and I feel like we could totally afford rent, and be able to still save a few hundred dollars a month. Also neither of us have squeaky clean credit, and many of the apartments I’ve been looking at either claim that they do not do credit checks, and just from personal experience (of having various friends and family members live in these complexes) I know that these certain apartments are more lenient than say..a bank giving you a home loan.
The other reason I’m daydreaming about renting now is because I cannot stand not living with him. It is literally driving me insane. Due to our work schedules we hardly ever see eachother during the week anymore, and on the weekends we’re both so burnt out from work we don’t really spend a lot of quality time together.
Then of course theres the whole “nesting” urge. I have all of this stuff..just sitting packed away waiting to be used, taunting me! lol
Also getting a house is going to take us so much longer. We’re going to have to save more money, clean up our credit a little more (which we are working on regardless), we’re just going to have to have more money available is the bottom line. And I am just so tired of waiting, I can’t stand that we’ve been together over 3 years and he’s still not the person I come home to at night.
So what are your opinions ladies? Owning or Renting? Which do you feel is better for you and why?
Post # 3
I have never rented. I knew at a young age I would NEVER rent it just seems like a waste to me. You are paying someone elses bills and making them rich.
Lucky for me my dad paid cash for my 1st house a small 2 bed 1 bath 1000 sq ft hosue and I made payments to him (he charges intrest!) I ended up selling that house 3 years later and bought my current house.
Post # 4
We decided to buy because the market was good for buying and we really could use the first time homebuyers tax credit. Plus, our mortgage would be cheaper than renting a 2 bedroom apartment in our area. Lastly, we were/are planning on living in this city for at least 5 years….if it had been less than that, it may not have been worth the effort.
Post # 5
It’s really a personal decision. It sounds like you guys are probably in a good position to rent for now. I rented my whole life, until FI and I bought a house 16 months ago. Renting is definitely not “throwing money away,” you’re getting a place to live out of the deal!
And don’t forget: you’re not just paying a mortgage when you buy a house. You also pay property taxes, homeowner’s insurance, and (in a lot of cases) PMI. Not to mention all the repairs and things you have to cover yourself.
I love being a homeowner, but I think renting for many years and saving money was what helped me get there. Sit down and crunch some numbers with your FI and figure out what your best move will be!
Post # 6
@lilybay:thats how I feel too! I’m not “throwing money away” I get to live with the guy I love!! and that’s priceless!
Yeah that’s the other thing. Sure we could probably afford a house payment (if someone were willing to give us a loan) and we could afford utlities, and probably food for ourselves, but I can’t imagine throwing home owner’s ins and property tax etc into the mix. And god forbid if something major happened, like a broken water heater or a leaky roof. I think you’re right, we just need to sit down and realistically figure it out. Thanks!
Post # 7
Renting CAN be the better deal depending on where you live. In many large metropolitan areas, the rent market is cheaper than the owning market. Obviously, the amount you are paying in interest can make it more or less expensive, and factoring things like yearly property taxes and homeowner’s association fees can send the cost through the roof. How often you move should also be considered, as closing costs and realtor fees are very expensive. When owning, you are responsible for all repairs – whether you need a brand new roof immediately after a big storm, your water heater breaks, you need a plumber, what have you. Those costs add up a lot, too. If you rent, you have someone to do that for you – so it is a convenience thing. I look at renting as paying for a serivce. It is cheaper to rent than buy in my neighborhood, and we save/invest heavily outside of our housing. It really is a matter of choice. We rent, and are flexible to move, try out new neighborhoods, have a handy man at our beck and call, and our heat and hot water are paid for! (a must in Boston, heat costs $$$$ here!)
Post # 8
I’m currently looking to buy a house with FI. But we can only afford to do that because I’ve been living at home and was able to save up enough for a downpayment. FI rents, but he had no choice as he moved here for a job straight out of college and had no intention of staying put here until now. We intend on getting our forever (hoepfully dream) house on this first shot, no buy small upgrade later hassle. If we don’t find a house by the time we are married, then we’ll have to rent together until we find that house.
If you plan on staying put for at least 5 years, buying may be the way to go. But at the same time, if you can save money while renting and fix up that credit score, you may be able to save more in the long run. It really comes down to 1, what your plan is with this house, and 2, what the real numbers work out to be.
Post # 9
@crayfish:very good points! thanks!
Post # 10
we decided to buy because of the market, my rent for a 1 bdroom apt was only $150 cheaper than my half of our mortgage. it didn’t make sense for us to get a bigger apt and waste both our money with it going out the window on rent, when we could build equity (crossing fingers) in our own home.
after this wedding, we will also be able to save at least $1000/month between the two of us; plus FI did a good job of saving up his nest egg for my ring/downpayment on house/savings account.
i do see the benefits of apt renting, in that there’s not much liability for things going wrong. we’ve been living in our house for a year n although we’re lucky that it was move-in ready, we’ve spent money on fixing appliances, sump pump, outdoor renovations for safety, and ohter unexpected maintenance bills that comes with being a homeowner.
Post # 11
We rent, basically because we can’t afford to buy a house right now and we don’t have anyone who will buy one for us. We love the area we are in and payments for a mortgage in this area for a house the same size as our apartment would be double the rent, it just doesn’t make sense. Plus we don’t have to pay for repairs or property tax, there’s a pool, a park, a hiking trail, plenty of parking, and its actually just perfect for us. Eventually we want to own a home but its just not practical right now. We are able to save about 400 dollars a month in our house fund and we will add to that after FH’s car payment is up in 3 months. For were we are in life right now, renting makes the most sense.
Post # 13
I think its completely a personal decision based on individual circumstances, and renting is not always a bad idea.
My FI and I rent separate condos right now & will rent a bigger townhouse together for a year or so after we get married. We want to take a year to build up our savings more for a bigger downpayment for when we do buy, put aside some money in case we have any maintenance needs, and to get a better idea of what area we want to own in.
Buying a home is a huge commitment, and you definitely want to have some rainy day money saved up, above and beyond your mortgage. Several of our recently married friends have had incredibly expensive and time consuming issues to deal with in their new homes (foundation shift, water heater breaking and causing mold, broken garage door, etc. etc.) They had to supplement their insurance to cover these items. And they had to oversee the work. If something broke in my condo right now, I would call my landlord and he would pay someone to fix it. I like that convenience. I don’t want to spend my first year of marriage fixing problems if they arise.
There are tons of positives to home ownership, but I don’t think you need to be in a huge rush just because there is some perceived idea that renting is “wasting money”. I think its a very smart decision to save first, buy later…and spend the time researching where you ultimately want to own your home.
Goodluck with your decision!
Post # 14
@pinkshoes:yes the real numbers will unfortunately be the final decision makers. damn you real numbers! I think we all like our “fantasy” numbers better 🙂 congrats on buying a house though! I know we’ll get there someday.
Post # 15
i’ve posted about this before—we rent are renters by choice.
it is cheaper to rent a place in austin than to buy. we are not willing to move to the ‘burbs where housing prices decline significantly. we could afford a decent, small place in the city but we have no desire to pay for home maintenance these homes would need–we don’t want a “fixer-upper”. we would rather stash our cash in our retirement accounts, buff up our savings, and buy a home when we feel the desire to own one.
we both make decent money, we don’t have kids, we don’t have large pets, and we like our urban condo lifestyle. so we’re staying put for at least 2 more years.
Post # 16
=) I think I threw the ‘real number’ comment in cause I’m so used to talking to FI. He loves to think that like invesetment ideas or business ideas are GREAT jsut from pulling complete guesses out of the air and then wonders why I’m not enthusiastic or supportive.. and I’m always like, we need to do real resarch and get real numbers stop getting exicted over your made up guesses..
It’s been really hard to find a house. We’ve been looking every Sunday the last 2 months or so and have visited at least 30 at this point. The biggest sticker shock to us was how much property taxes (600-800/month depending on the town) and ‘regular’ living expenses are. We calclated the non mortgage and tax critical expenses (water, heat, gas, tv, cable, food, insurace, etc), and they came out to almost 1k/month on their own! Theres some good spreadsheets out there that break it out really well and list every expense you can think of. Then I asked around friends in the area tht own and stuff for some real numbers. That should really help with figuring out the real cost of ownership on top of just the mortgage.