(Closed) Why do people say renting is wasting money?

posted 6 years ago in Home
Post # 3
Member
808 posts
Busy bee
  • Wedding: March 2013

There are lots of loan options that are not 20%….but you definitely have to be ready to take on a home loan.  Sounds like your friend is just being a jerk, plain and simple.  Its not a waste of money, really, more like your money could be going toward your mortgage instead of your landlord’s.  Mortgage insurance is tax deductible too.  Blah blah…you’ll buy when you’re ready!  The scarcastic fool in me wants to ask her “I’m curious why you seem so interested in where I live?”.  That would likely shut her up. 

You could always start saying things like “thank goodness we aren’t tied down with a mortgage, we can move and live anywhere we like…its so refreshing to not have debt ;)” 

Post # 4
Member
2457 posts
Buzzing bee
  • Wedding: September 2012

You are being responsible. I think some people just tend to have a skewed version of how the world works. If we could all OWN a house right away, we would! However, considering we have to save THOUSANDS of dollars to even do that, it’s not usually the first thing we’re able to go out and do.

I think the people that say these sorts of things forget that right now, it’s not like you really have a choice as to how to live. They think you’re choosing to rent instead owning a home. People sometimes say things like that to me, too, and you know what I tell them?

When my dishwasher or garbage disposal goes out, or a drawer breaks, or something shorts in the electricity (not saying these have all happened, just as examples), I don’t have to go and buy things right then and there to fix them (hoping I have the money or credit) – someone else does. They also landscape, clean the pool and spa, water the plants, etc. All while I get to save up and live comfortably before buying a house. (I’ve even had a couple with kids tell us they wish they were renting so someone could do all of that for them!) 😛

 

Post # 5
Member
384 posts
Helper bee

Here at least you can rent a tiny 2 bedroom apartment for $1200+ more like $1500 for a decent place. If you pay that per month you can actually afford a mortgage on a house currently. Hence wasting money on renting. Since rent goes to the landlord and the money isnt really used for you to own anything where if u pay that in a mortgage then at least the money goes to something you own and have a pretty decent house.

Post # 6
Member
2559 posts
Sugar bee
  • Wedding: September 2010

I think it’s just a soundbyte for a status symbol people think they are supposed to have. I LOVE renting and at 24, I’ve already heard for a couple of years from my peers (who are similarly not super well-off) that renting = waste. To me, I am paying for a roof over my head, a mechanic, convenience in moving, and am not responsible for major repairs, the yard, etc. At this point in my life, it’s a huge win. When people are brats like your friend, I shut em down, but usually when people are saying it in passing I just let it go. To each his own, but renting my apartment is no waste.

 

@StephieBee:  “If we could all OWN a house right away, we would!”

I’m not sure that’s true – I have a myriad of reasons for renting and I wouldn’t own right now even if I had the option, which I technically could work out if I wanted. I don’t want the hassle of a decades-long commitment and I’m not concerned with checking “home ownership” off my list ASAP.

Post # 7
Member
4272 posts
Honey bee
  • Wedding: April 2012

It is because some people see owning a home as an investment.

 

@skipanther:  Also this.

Post # 8
Member
249 posts
Helper bee
  • Wedding: July 2014

@MrsPinkPeony:  

Well in theory people make the argument that renting wastes money because when you make a mortgage payment it is like putting that “rent” money into your own assets.  If you pay the same on your mortgage as you do on your rent you are paying for ownership of something versus temprorary use of space.

 it sounds like your friend regrets her decision to buy (can’t make a down payment, but you think you can afford to own a home? not saying it’s impossible, but it doesn’t sound like brilliant financial planning).  It sounds like she wants to justify the decision to herself by being rude to you.  Renting has many benefits that home ownership doesn’t (upkeep isn’t your problem for one)!  Flexibility is the main advantage I see.
 
A couple married friends of mine bought a home a year ago while she was still in school to be a teacher and he was working security.  Now that she has graduated and needs a teaching job they are trapped in a mortgage and she can’t search for jobs outside the local area, despite the fact that they both could work anywhere in the country.  I don’t know the situation obviously, but I’ll take a wild guess and say your friend may not be as smug as she seems.

Post # 9
Member
8041 posts
Bumble Beekeeper
  • Wedding: December 2013

@MrsPinkPeony:  These people are out of line. I think buying is ok, if it’s the right time and the right price. We’re renting too. Sure, we could buy, but we want to leave the country in a few years. It would be silly to buy. House prices are also expensive in my city. Maintaining a home = super expensive as well. I don’t see the point in buying for the sake of buying. It isn’t the investment it once was, and in the States, for example, there are tons of foreclosures, so home ownership definitely isn’t something to rush into.

Post # 10
Member
7770 posts
Bumble Beekeeper
  • Wedding: July 2010

Seriously, I get the whole argument, but I find it silly as well OP.  And I think the recent years in our country- have they not taught us that buying isn’t always better?  People owe more than places are worth.  I know people who cannot sell.  And so forth.

Post # 11
Member
1748 posts
Bumble bee
  • Wedding: May 2013

We rent and love it. I don’t think we’ll always rent, but for right now it’s perfect!! We have a 3 bed/1.5 bath for less than $800/month and includes lawn, trash, and sewage. If our water heater or AC goes, we make a phone call and someone is out within a day to fix it- we don’t pay anything and we’ve never had our rent raised. I have nothing against buying a home and fully intend to at some point, but what’s the rush?? I have friends who bought a home- foreclousre, as is- and within a month had to pay $8000 in plumbing issues with pipes running beneath the home- no thanks!!

Post # 12
Member
4770 posts
Honey bee
  • Wedding: November 1999

@skipanther:  This. 

Renting doesn’t make sense if you know you’re gonna stay somewhere for a long time.  We move around a lot and therefore don’t own, but I def wish I was paying for a morgage instead of rent.

Post # 13
Member
437 posts
Helper bee
  • Wedding: September 2013

so, I bought a house 5 years ago.  Have paid my mortgage on time every month for the past 60ish months (>1300/mo), but have paid down my mortgage only ~12k in that time, and additionally invested about 20k in upgrades/maintenence in my house in the last 2 years alone.  Now it’s time to sell (moving to a new city), and not only will we not recoup most of that money, but after realtor fees we may have to bring money to closing.

Soooooo, renting is sometimes a better idea…

Post # 14
Member
8444 posts
Bumble Beekeeper
  • Wedding: April 2013

@MrsPinkPeony:  I think it depends on where you are and what your situation is.  I’m sure the idea of rent being a waste of money stems from the fact that when you pay a mortgage, part of that goes into an investment.  One could also say that taking a loan is a waste of money, but everyone’s needs are different.  As long as you’re comfortable and living within your means, I don’t see a problem with renting.

Post # 15
Member
351 posts
Helper bee
  • Wedding: February 2013

@MrsPinkPeony:  I think it also dependso where you live, like cost of living…. for example we just bought a house in Dec. using the VA loan as well BUT in Alaska, the place we were renting, a 2 bed 1.5 bath townhouse about 1000 sqft for $1,500 (including utilities)…thats when we looked at our options of buying and we found the perfect home with a $1200 mortage and 1,800 sqft…. to us, its an investment and in the long run, we hope to come out making some $$ on it.

Like @StephieBee: said, its nice to not have the responsablity of calling your landlord to shovel the deck or snowblow the driveway (it freaking sucks but oh well, the joys of homeownership).

You friend is being a meanie for being that way with you though. I definitely dont go around telling friends that rent “you are wasting your money. Everyone has different things going on in their lives and you will be ready to buy when you are just ready lol

 

Post # 16
Member
1748 posts
Bumble bee
  • Wedding: May 2013

@canarydiamond:  Ugh!! My mom thinks everyone should buy and keeps harping on it being a great “buyers market” and I just respond that when we’re ready, we’ll look in it- but we’re not. I don’t think it’s something that should be rushed into.

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