(Closed) Buying Vs. Renting argument with fiance

posted 6 years ago in Home
Post # 3
Member
9674 posts
Buzzing Beekeeper
  • Wedding: September 2012

@BellaDee:   I actually agree with you.  There are benefits to home ownership that you won’t have with renting, the tax break being one of them.

I hope you can convince him not to throw money away on renting when you’ve already done so much savings towards home ownership. 

If you want to own a home you’re doing everything right so far.  In my view, renting now would only put you further away from that dream, not closer.

Post # 4
Member
118 posts
Blushing bee
  • Wedding: August 2012

I don’t even think there is an argument with this! Buying is so much better and you aren’t throwing your money away every month, your actually investing it in something that is YOURS. You just have to be sure that you will stay in that area! 

Post # 5
Member
3886 posts
Honey bee
  • Wedding: September 2011

I actually don’t see anything wrong with choosing to rent for a year before buying in an area with which you may be unfamiliar, especially if you’ve not lived together before.  Once you sign that mortgage, you’re pretty much putting down heavy roots and it’s really hard to undo things if you’ve overlooked something major about the neighborhood. 

My Fi and I have lived together for over 3 years in a home that I bought 11 years ago;  I applied for a transfer out to the West Coast last year and while I did not get it, we did a lot of research on the move, and decided that we’d be better off renting for 6-12 months rather than buying, specifically because we wanted to get more familiar with the new neighborhood before making a long-term commitment.

It’s too bad that renting has such a bad reputation— it really is not “throwing your money away” because you need to pay to put a roof over your head, no matter whose name is on the mortgage (assuming you don’t want to live with relatives forever) and renting has some big upsides. It’s flexible in that you can pay a leasebreak penalty fee anytime and get out of the lease without having to wait for the house to sell; you are protected against swings in the real estate market (my homeowner friends in Florida all wish they had been renters instead of owners), and you are relieved of the burden of unexpected repairs.  This last part might be the most useful to a young couple just starting out. Let someone else pay for the new roof.
 

Post # 6
Member
14444 posts
Honey Beekeeper
  • Wedding: June 2011

I agree with you.  If you already grew up practically in the general area and know the areas well, you should be able to make sound decision and not test run places for a year at a time.  That sounds rediculous, so if he’s deciding between 3 locations, he’d rent and put off buying for 3 years to check it out? Nooo… a lot of people move to comletely new places and buy off the bat, it sounds like you have plenty of information to make an educated purchase and not have to test out living in different areas.

Post # 9
Member
2539 posts
Sugar bee
  • Wedding: March 2012

Do you guys have a rent to own option? We did that for a year before we purchased our home. A precentage of your rent goes towards your down payment after a year… however if you chose NOT to buy that money is just gone.

I do agree that renting is a waste of money, however, buying is a hige investment and maybe test driving they area to make sure that you guys are both confortable there is not a bad idea.

Whatever you guys do, make sure you both listen to each other and come to a choice that is good for you and your family.

Good luck!

Post # 11
Member
13099 posts
Honey Beekeeper
  • Wedding: July 2010

@pinkshoes:  “If you already grew up practically in the general area and know the areas well, you should be able to make sound decision and not test run places for a year at a time.”

Totally agree.  If they were moving to a brand new region of the country where they didn’t know people and didn’t know the area, I can understand the arguement for renting for a year or so to scope things out more.  But when you’ve been living in the general area for years and know lots of people who’s opinions you trust – there really is no need to continue to rent when you are financially ready to buy.

Post # 12
Member
5787 posts
Bee Keeper
  • Wedding: May 2011

I would also point out the costs you may incur by waiting 1-2 yrs. Rates are going to rise eventually and .25% over 30 yrs is a TON of money. Go find a mortgage calculator and show him. Also, depending on what markets you’re looking into prices may have bottomed out, this is harder to prove but also something you risk by waiting.

Post # 13
Member
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

I am in total agreement with your Fiance. I can’t imagine buying in an area that I am not familiar with. If you buy a house with a 15% downpayment, it will be at least 5 years before you hit a break even point, and even longer before you earn enough to be able to put a good downpayment on another house. So if you botch this decision you are stuck. It’s far better to rent in a new area and test the waters. Just because other people that you know give the area a ringing endorsement, that doesn’t mean that you two will actually like the area for yourselves.

Mr. LK and I rented in our newly-adopted county for 7 months before getting into the real estate market. We were both familiar with the county, had visited it multiplke times, and had spent our entire lives in this general area. We THOUGHT we knew exactly what we were getting into, but wanted to be cautious nonetheless. It was a big learning experience for us, even though we had friends and co-workers who lived in various parts of the county and gave us the inside scoop on everything. One person’s idea of perfect “Ohhh it’s near Park X. You will LOVE being near Park X. It’s rated as one of the best parks in the entire country.” was our seriously annoying, PITA experience. Park X, it turns out, hosts races pretty much every weekend in the spring and fall. Do you know how annoying it is to hear loud speaker announcements and music at 6am on a Saturday? And yet our friend had assured us that living near Park X was a dream come true. But we are not our friend, we have different opinions, and we needed to learn for ourselves. Thank goodness we didn’t blindly buy a home near Park X or we would still be listening to their loud speaker announcements.

Post # 14
Member
249 posts
Helper bee
  • Wedding: May 2013

If you buy a house and decide it’s not the best place for you, there’s no reason you can’t sell it. I would just make sure you buy a house with appeal that would be decent for resale in this economy.

Also, not sure your age or your time frame but Fiance and I bought a house last year and there’s no way we’d want this to be our forever home/where we raise our family. It’s just our first home/getting our feet wet in home ownership while we build equity. Just a thought 🙂

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