(Closed) Considering moving out for the first time, should I rent or buy a place?

posted 3 years ago in 20 Something
Post # 16
Member
127 posts
Blushing bee

I would always recommend renting when living on your own for the first time. You really need to figure out how much it costs to live so you can budget appropriately. You don’t want to purchase something too expensive and wind up house poor.

Post # 17
Member
1890 posts
Buzzing bee

I definitely think you should rent first for at least a year, especially since you and your boyfriend will be both living together for the first time and living on your own for the first time. You learn so much renting, I strongly believe it’s a step people shouldn’t skip.

Post # 18
Member
5113 posts
Bee Keeper
  • Wedding: December 2014

Mlim:  Since you’ve never lived on your own before, I’d rent for at least a year or two. I think it’s important to get used to that first so that you can get a better sense of what you want in an eventual home. You can also get used to having to take care of a place on your own, without really having to take care of the place (repairs, maintenance, etc.). In a year or two you may also be ready to just buy a home with your SO as well.

Post # 19
Member
744 posts
Busy bee

agree with renting.  especially as it’s your first time living alone.  plus maybe in a couple years you all will be moving in together and looking to buy a home.  i would also recommend getting an apt that’s not too expensive so you can continue to save relatively aggressively. 

Post # 21
Member
521 posts
Busy bee
  • Wedding: January 2016

Rent first, buy when you have more saved. You’ll need an emergency savings plus (ideally) 20% saved for a downpayment to avoid PMI and enough for closing and moving costs. Everyone is saying a home is a great investment, but it isn’t always. My dad bought a home with his girlfriend and when they broke up, he had tons of issues trying to keep the house they bought together. On top of that, houses don’t always appreciate. Where I’m from, housing prices haven’t really changed in the past 6-8 years or so. You’ll have to pay all the maintenance and repair fees yourself, can you pay those expenses without going into debt? Can you handle all the maintenance yourself? I’d really consider renting first. When we moved into our rented apartment we had three seperate plumbing issues that all had to be fixed by our landlord because we were renting. And thank goodness! 

Post # 22
Member
2168 posts
Buzzing bee
  • Wedding: October 2013

If you’be never lived on your own, I suggest renting first, for about a year. You have a really nice amount saved and if you can keep that amount and not touch it, that will be great when you are ready to buy. Living on your own is an adjustment for sure so take baby steps so you can establish yourself.

Post # 23
Member
2318 posts
Buzzing bee

Buying is the better choice investment wise but it really is a lifestyle choice.  Owning a home comes with its pros and cons.  One major con for me is the time for the upkeep.  If I were still in my twenties, I would still want to be out with my friends some evenings and sleep in some mornings, rather than take care of the house.  Also, with owning a home, your savings will be on a whole other lever because you are responsible for all repairs.  Roofs, doors, floors, water heaters, appliances, windows, etc all are expensive and can break.  You have to be prepared to buy new ones and pay for the installation if you cant DIY.  on the other hand, renting, frees you of these responsibilities.  I have a professor I am friends with who rents.  The money she doesnt spend on a home she spends traveling the world.  

Post # 24
Member
2680 posts
Sugar bee
  • Wedding: September 2014

ana2017:  “Mlim: buy anything, it will grow in value and you can sell it when you guys decide to move in together and there will be more $$ to put as the down payment. Renting is litterally money down the drain, your wastimg money making someone else richer… so if you can afford to buy anything just buy, you can always rent itnout later if you dont want to sell… having real estate is the best investment always.”

NO, NO, NO! The collapse of the US housing market from 2006-2012 is just a recent example of how untrue and potentially dangerous this type of thinking is. Home ownership can have great perks. It can also be a great investment. But, you have to be selective and smart and carefully weigh the pros and cons. Real estate is NOT guaranteed to appreciate. It is also not a definite that you will always be able to rent out your home, or find good tenants. Real estate is not ALWAYS the best investment. You certainly should not buy ANYTHING.

Also, I absolutely hate the train of thought that renting is wasting your $$$ or throwing your $$$ away. Shelter is one of the basic necessities in life. Renting a luxury home may be an extravagance or a waste, but so is owning a car when you could take the bus or bike OR having lots of clothes when you could make do with 1 pair of pants OR spending money on eating out/buying pricey groceries when you could survive on rice and canned beans.

Post # 25
Member
351 posts
Helper bee
  • Wedding: November 1999

WestCoastV:  +1,000,000.  It drives me crazy when I hear people say that buying is always better financially than renting.  Tell that to the millions of Americans who were and still are under water on their mortgages after the housing collapse.  I think a lot of the really young bees just don’t understand that.

Post # 26
Member
815 posts
Busy bee
  • Wedding: May 2016

Mlim:  How much is mortgage compared to renting in your area? In some areas it makes no sense to buy, in others it does. Considering you are still living with your parents you should probably rent for a bit and get used to all the new responsibities and then buy when you are mentally ready. When you buy you dont just buy and that’s it….

Post # 27
Member
3903 posts
Honey bee
  • Wedding: January 2017

WestCoastV:  Im in Toronto Canada….in our real estate market is booming and growing like crazy, there are crazy bidding wars all over the city, rent is creaping up as well. If I could afford the tiniest house in a good neighborhood I would buy it in a heart beat. The reason I cant is because my rent us do goddam expensive and income is iust not enough…. we never had the crazy real estate crash you guys had in the US.. so here it’s still buying is always better than not buying as long as you dont buy more than you can comfortably afford. People who overextend themselves end up house poor amd post people in the city are because prives are just crazy… so if you can afford to buy and not be super poor after buying us always better here.

Post # 28
Member
1092 posts
Bumble bee
  • Wedding: October 2011

My advise would be to rent for a few years because furnishing a home no matter how small can add up quickly. Think about everything you need to live from day to day such as a bed, dresser, towels, sheets, rugs, sofa, chairs, tables, lamps, dishe’s, glasses…. Etc!! The necessities of life will take a big bite out of your savings. When you get more of a sense of what you need in a home and have added to your savings again then I’d also recommend googling “The true cost of owning a home”. I’ve wanted to buy a home for a while but after reading that article I got a real eye opener of what it really costs to own. Unfortunately I watch a lot of HGTV so my view was clouded by how cool it is to pick out hardwood flooring. I know renting isn’t for everyone but the way I see it is if we want or need to move all we do is give notice. Yeah, I know people say “You’re wasting money by renting”. Well so is eating. I mean we eat, our bodies use what it needs and disgards the rest. Now that’s REALLY wasting!!!

Post # 29
Member
71 posts
Worker bee
  • Wedding: August 2015 - caesars palace las vegas

i think i am a lifelong renter… but its because i live in a place that is so expensive. first steps first…if you are going to be on your for the first time it is always better to rent THEN buy if you want! good luck and go with your heart! and your research!i would recommend suzy orman on any doubts or questions about this topic BUT i have to say i am a happy renter free to move where i want to be with my husband! and when stuff breaks… it gets fixed! BUT owning a home is an amazing thing too!

Post # 30
Member
474 posts
Helper bee
  • Wedding: September 2016

I agree renting for a year would be the best choice. It would give you time to adjust to living on your own.  It would also give you a year to watch the housing market and continue to save. You never know when a great deal could pop up but wait for the great deal. 

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