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Old 06-07-2010, 11:06 AM
 
300 posts, read 789,518 times
Reputation: 110

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Quote:
Originally Posted by azriverfan. View Post
The only downside to renting is the lack of prestige but other things should take priority over prestige like not having to declare bankruptcy. People just don't think and in their small minds, the word Rent=inferior and Own=superior. They don't break it down and think of all the costs involved with owning a home

That isn't the only downside to renting. When you rent, you will never own your apartment. When you pay for your mortgage, you will have a house to show for when its all said and done.
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Old 06-07-2010, 11:13 AM
 
3,884 posts, read 8,569,709 times
Reputation: 1466
I owned and rented and see a good side to both. I would worry about making such a large purchase right now in fear of never being able to sell it if you had to move because of job or something serious. Thats the only thing, in this market, you really have to know you'll be staying there for a long time. Maybe I'm wrong, but, it just really feels that way to me.
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Old 06-07-2010, 01:34 PM
 
10,720 posts, read 16,313,630 times
Reputation: 9819
Quote:
Originally Posted by twiggy View Post
I owned and rented and see a good side to both. I would worry about making such a large purchase right now in fear of never being able to sell it if you had to move because of job or something serious. Thats the only thing, in this market, you really have to know you'll be staying there for a long time. Maybe I'm wrong, but, it just really feels that way to me.
Agreed, something else people don't think about is their expenses. Sure, maybe you can afford a house when you are single or it's just you and your significant other. But when happens when you have kids, and your expenses add up. Can you still afford that mortgage then?

This is why renting is the better option now. The job market is volatile. The real estate market is volatile. And there are so many added expenses of buying a home.
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Old 06-07-2010, 06:57 PM
 
1,424 posts, read 2,453,997 times
Reputation: 811
Quote:
Originally Posted by Lovegun View Post
That isn't the only downside to renting. When you rent, you will never own your apartment. When you pay for your mortgage, you will have a house to show for when its all said and done.
"A home without equity is just a rental with debt' - Vincent Daniel, "The Big Short, Inside the Doomsday Machine"
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Old 06-07-2010, 07:14 PM
 
1,424 posts, read 2,453,997 times
Reputation: 811
Before this thread gets too lengthy check out:

Home values still going down? Why?

for a good laugh at just how wrong the posters (especially the optimists) have been on virtually the same topic.

Please continue
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Old 06-07-2010, 07:17 PM
 
382 posts, read 1,171,662 times
Reputation: 258
We took advantage of the re-stabilization program in Surprise. So not only did we get assistance with the down payment and closing costs(which many are qualified for but don't know it), but we got a great home that's in really really good shape. Appraisal value was higher than what we paid, but up or down we are here for at least 6 years anyhow.

We did it on one income. We did it with 2 kids. We did it responsibly.

A lot of people think you have to have two incomes to own a home. Three years ago, that was true for us. Because of this housing slump, we're able to afford our home on one income. The big kicker was having good credit and being financially responsible.

If you aren't financially responsible or have a lower credit score, maybe renting really is better for you. For us it was the right decision and the right time. We're paying $150 more for a huge house than for a 1 bedroom apartment, and that includes tax, PMI, and home insurance.
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Old 06-07-2010, 08:02 PM
 
Location: Anchored in Phoenix
1,942 posts, read 3,676,286 times
Reputation: 1753
I come across too many Pollyannas who want to ignore the news. Ben Jones' Housing Bubble blog is a valuable resource of articles by Ben Jones, a Northern Arizonan. He has a general blog daily and practically every day posts links to articles around the U.S. and sometimes the world on the housing bubble situation. As a result, it's very educational. For instance today, articles quoting form real estate professionals that foreclosures are going to be 3.5 million this year, up from 2.5 million in 2009. Also that ALT-A resets will peak in 2011 and there will be even more foreclosures. 25% of the home mortgage payers are underwater in the U.S. One of the RE people thinks that prices will continue to decline through 2011 and stay flat another three to five years.

Some Fannie Mae officials are even talking about bulldozing empty bank-owned homes in Florida and California's inland empire!

So it's funny to see Pollyannas continue to post blurbs that owning is better than renting. Well not in a declining market. Ask the people who signed up for a $300,000 house in 2007 now worth $200,000 if owning is better than renting!
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Old 06-07-2010, 08:15 PM
 
331 posts, read 822,046 times
Reputation: 324
Quote:
Originally Posted by lyzzard View Post
We're paying $150 more for a huge house than for a 1 bedroom apartment, and that includes tax, PMI, and home insurance.
What that fails to consider is the much higher cost of utilities. You now have to pay for your own water, sewer, trash collection as well as to cool a home that is probably at least three times the size of your former one bedroom apartment. Obviously with the Phoenix summers, this is no small expense. Plus add in landscape maintenance and future home maintenance.
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Old 06-07-2010, 08:49 PM
 
Location: Casa Grande, AZ (May 08)
1,474 posts, read 3,218,762 times
Reputation: 1149
Once again I will say that from a strictly FINANCIAL standpoint, the arguments for waiting to buy may be somewhat compelling (though I would not go so far as to say conclusive), the reason MANY MANY MANY people buy homes are for the non-financial benefits they feel ownership offers them and their families.

Its not for everyone at any given time - and if you want to persuade people that ask about whether buying a home as a FINANCIAL investment, to wait it out, I can understand you wanting to provide your insights. BUT, some of the posts here get SOOOOO negative to those that have (or are going to) make the decision to buy and make a LIFE investment, probably for reasons beyond financial, that it gets a little tiring.

SO, I try to show just a bit of the other side of why people buy instead of rent.
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Old 06-07-2010, 09:15 PM
 
Location: Anchored in Phoenix
1,942 posts, read 3,676,286 times
Reputation: 1753
I safely presume you never read Ben Jones' Housing bubble blog.

Quote:
Originally Posted by sh9730 View Post
Once again I will say that from a strictly FINANCIAL standpoint, the arguments for waiting to buy may be somewhat compelling (though I would not go so far as to say conclusive), the reason MANY MANY MANY people buy homes are for the non-financial benefits they feel ownership offers them and their families.

Its not for everyone at any given time - and if you want to persuade people that ask about whether buying a home as a FINANCIAL investment, to wait it out, I can understand you wanting to provide your insights. BUT, some of the posts here get SOOOOO negative to those that have (or are going to) make the decision to buy and make a LIFE investment, probably for reasons beyond financial, that it gets a little tiring.

SO, I try to show just a bit of the other side of why people buy instead of rent.
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