(Closed) Renting or owning?

posted 7 years ago in Home
  • poll: Which would you prefer: Renting or owning?

    Renting

    Owning

  • Post # 17
    Member
    708 posts
    Busy bee
    • Wedding: May 2015

    I want to own a home, but know it isn’t feasible for us right now (SO is in law school and I am going back to grad school soon), so for now, renting is really our only option. Yes, it’s “throwing money away,” but as someone who is just building up savings and has nothing CLOSE to 20% of what a house would cost in our area, it just isn’t realistic. Also, renting means we get to live in an area of the city that we could NEVER EVER afford (most apartments, even 1 bedrooms are like $600K plus in our neighborhood).

    Post # 18
    Member
    10360 posts
    Sugar Beekeeper
    • Wedding: September 2010

    I think both are good options, depending on your lifestyle and wants/needs.

    We wanted to buy, but that is mostly to stabilize our housing costs in a market that has extreme rental price increases year over year. We also wanted a dog, which most landlords here either don’t allow, or charge pet rent for ($50-70/month).

    I consider renting paying for a service – I do not consider it “throwing money away” as is so often stated. You are paying to not be at risk of a downturn in the housing market, to not have to shell out tens of thousands of dollars in repairs at a moment’s notice, and for the convenience of being able to upsize/downsize/leave town without having to sell your house.

    Post # 19
    Member
    8435 posts
    Bumble Beekeeper
    • Wedding: April 2013

    I think it depends on where you live.  Where I’m originally from in CA, I would need at least a $100k downpayment to get anything decent, so buying a home was fairly distant in the future.  However, once we moved to NC, the homes were so affordable it was actually cheaper for us to buy.  We are now thinking about purchasing a second property in the next few years and keeping our current home as a rental property.

    Post # 20
    Member
    794 posts
    Busy bee
    • Wedding: August 2015 - Backyard Forest

    We will be buying our first home very soon.

    Housing is very affordable in our area and our mortgage payments will be less than our rent!! We could purchase a home for more money but our mortgage would end up being more. 

    The way we look at it is like this…

    Say you pay $1200 a month in rent… that’s $14,400 a YEAR in rent that goes NOWHERE but into your landlords bank account to pay off their mortgage.

    When you have a mortgage you’re paying far less than that on interest every year, and the rest goes down to paying for the home you own – that is yours. 

    There is just a lot more freedom to owning. 

     

    Post # 21
    Member
    715 posts
    Busy bee
    • Wedding: May 2013

    Financially, owning a home is usually a better idea than renting. We are closing on our first home this week… That being said, we are buying reluctantly. We’ve loved renting. We moved from our first apartment into our current house now. We’ve rented this house for almost 2 years and have had all the perks of living in a single family home without any of the homeowner headaches. The only reason we’re caving and buying a house is because of what everyone has mentioned here: we’re tired of “throwing away our money” to someone else’s advantage, that and with our combined incomes we need a tax break. Sigh… We will definitely miss being renters! 

    View original reply
    @crayfish:  Definitely agree with you on paying for a service! That’s how we’ve justified renting for so long. It’s just so much more convenient to rent! 

    Post # 22
    Member
    1723 posts
    Bumble bee
    • Wedding: May 2014

    @LadyBlackheart:  I actually completely agree with you.  We are looking at buying a house after the wedding next year bc its something my Fiance has wanted and its very important to him.  Personally I don’t mind renting, bc as you said…when something breaks…that landlord gets to pay for it and get it fixed. But knowing how excited Fiance is about buying a house makes me excited that we get to do something thats so important to him.

    Post # 23
    Bee
    1835 posts
    Buzzing bee
    • Wedding: November 2012 - Oak Tree Manor

    We’re homeowners and I LOVE it. There’s things I miss about renting – especially the amenities, like the gym and the pool! – but even with all the expenses and work that  go into being a homeowner, it just makes so much more sense long-term for us than renting. We’re pretty sure we’ll be living here for long-term (and if we were to move away we’d probably rent out our house). So considering that… Our mortgage is only slightly more than what we’d be paying rent, at least the way the rental market is right now. We get a 2,000 sq ft house with a backyard for our dog to play in. We don’t share any walls with neighbors, so I don’t have to worry about noisy people living above or next to me like I did in an apartment. We have an attached garage, which makes cold winter days, and carrying in groceries, so much easier. We have a garden that I love to work on.

    And the biggest thing is owning a house in the long-term – if you rent your whole life, how are you going to afford a house when you’re retired and living off a fixed income? Most mortgages are 30-year mortages… I’m 25 now, if we don’t pay off our house early we’ll have mortgage payments until we’re in our 50s. But then we OWN our house for the rest of our lives – yay! I can’t imagine having to put away money to pay rent once we’re retired. 

    BUT I think there’s a right time for everyone to buy a house. Considering sellers usually pay closing costs (which can be $20-$30,000, really depending on the cost of the house!) it doesn’t often make sense to buy if you plan on moving within a year or two. And if you don’t pay a 20% downpayment in the US, you have to pay pre-mortgage insurance which sucks – DH paid $300/month on PMI on his first house, because he only put 5% down when he bought it. The bigger downpayment you can afford, the less money you spend on interest on your mortgage, so you have to weigh that against the cost of rent – with rent so high these days, we wanted to buy sooner rather than renting for a few years to save more. Plus the tax benefits have been great.

    Post # 24
    Member
    2278 posts
    Buzzing bee
    • Wedding: October 2013

    We’re renting right now. I feel like I have one fit in the renting camp and the other foot in the owning camp. Each has their pros and cons. Right now when I think about it, I feel like homes cost too much, hah.

    Post # 25
    Member
    6354 posts
    Bee Keeper

    I’d say it depends on the situation. If I was only planning on staying somewhere a short time (such as now) renting makes more sense. If I’m settling down for the longer hall (in the future) I’d prefer to own.

    I also have difficulty wth the appeal of owning a condo. For me it doesn’t realy feel like ownership because of the lack of control compared to when you own a house. When I own, one of the big benefits for me is that control over my property.

    Post # 26
    Member
    6518 posts
    Bee Keeper
    • Wedding: September 2013

    View original reply
    @LadyBlackheart:  yea, its pretty ridiculous here. $750K will get you something decent, you are lucky if you get a backyard and a parking garage.

    Post # 27
    Member
    9681 posts
    Buzzing Beekeeper

    @LadyBlackheart:  In certain instances, renting can be cheaper. I prefer to own property so I build equity and I can use it as part of my retirement plan. I also make money off of other people renting. For me, it was a clear choice.

    I can see your point though – tenants call me whenever they want to tell me absolutely ridiculous things that I am then responsible to go fix (well, my husband). That’s one reason I like condos because the maintenance fees cover all that crap 😛

    Post # 28
    Member
    307 posts
    Helper bee
    • Wedding: January 2015

    Fiance and I plan on buying a home in a few years, when we know we’ll be stable in one area for more than two or three years at a time.

    – We live in an affordable area.

    – The leasing office and maintenance staff is awfully lax here, so often we find ourselves paying out of pocket or putting in lots of time on getting problems and projects fixed ourselves.

    – Neighbors who are moderately distanced… We live in an apartment next door to the amenities, but unfortunately that means we hear all the loud pool parties, people going through to go to the gym, and rogue tennis balls shooting onto our patio/into our screen door.

    – Greenspace. We chose a complex with a lot of green space, but I want our own little patch of land that I can do what I want with. Also, we have dogs that need serious room to roam.

    View original reply
    @Mrs. Wallaby:  we are sooo looking forward to a time when that will be us!

    Post # 29
    Member
    5285 posts
    Bee Keeper

    We thought about renting right after the wedding because we were living with DH’s parents and wanted out so bad!! Luckily we were able to find the home we want after the first day of looking at homes and his parents gave us a substantial wedding gift that helped us with the down payment. DH likes to do home projects so he wanted his own place that he could do whatever he wanted to and he considered renting as “throwing away” money. We bought a detached home so we dont have to worry about hearing other people or people hearing us and we have a nice backyard with a deck and grass space. A Home is work but it’s not that muchthat it isnt manageable..I acutally enjoy the work because its my own house 🙂

     

    Post # 30
    Member
    2959 posts
    Sugar bee
    • Wedding: May 2014

    I rented my entire life so yeah, I am biased. I WISH I was still renting! I was perfectly happy renting but Nooooooooooooooooo! We had to go buy a house. I totally HATE home ownership. I hated the process of buying a home. I hate the damn escrow account payments that are almost as high as the mortgage payments. I hate being responsible for home repairs. I know the roof will need replaced in another year or two – does a 12-15K bill sound like fun to you? If the dishwasher goes out – fine, I will hand-wash the dishes then. I feel like I have been chained to this house and did I mention I hate it?

    Post # 31
    Member
    3696 posts
    Sugar bee
    • Wedding: May 2012

    I prefer to own, because I like my own space.  But I’m not against renting, when it works better.

    For example!  My husband just had to buy this house. Had to own a house rightfreakingnow, in 2006.  He spent $206k on it.  It’s now worth maybe $150k (was $130k a couple years ago).  If he had been renting, he would not have thrown $56k+closing, etc down the toilet.  It’d be close to the same in rent, but we/he could have just… left and not been stuck in this dump.  And he probably would have saved the thousands he’s spent fixing everything that’s broken and replacing all the appliances.  My oven quit a week before Thanksgiving two years ago!

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