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It's an individual choice and different for everyone. For me it was better and cheaper to buy, so I did. My mortgage is less than what I would pay to rent a room in someone's home.
I've thought about this some and it seems to me that if you buy a property you will pay property taxes on it in addition to the mortgage payments, as though you owned it outright, when it's the bank that really owns it until you pay it off. The bank doesn't have to pay the property taxes, you do, when you don't even own it yet.
Of course if you don't pay the property taxes it will be taken away from you by the state, so in effect you are really just renting it from the state permanently. You never will own it outright. The state really owns ever property, and rents them to us, (calling the rent property taxes) even though we paid a huge amount of money over many years to say we own it. So we never really do own a property, and by my lights renting up front is a lot better since in effect that's what we are really doing anyway, it's just a lot more up-front and honest a deal.
I've thought about this some and it seems to me that if you buy a property you will pay property taxes on it in addition to the mortgage payments, as though you owned it outright, when it's the bank that really owns it until you pay it off. The bank doesn't have to pay the property taxes, you do, when you don't even own it yet.
Of course if you don't pay the property taxes it will be taken away from you by the state, so in effect you are really just renting it from the state permanently. You never will own it outright. The state really owns ever property, and rents them to us, (calling the rent property taxes) even though we paid a huge amount of money over many years to say we own it. So we never really do own a property, and by my lights renting up front is a lot better since in effect that's what we are really doing anyway, it's just a lot more up-front and honest a deal.
By this logic, I don't 'own' my life either. I'm just borrowing it from God until I'm 'called home.'
Renting keeps you mobile. A home is an investment towards your retirement. It really depends on your financial situation. Think 30+ years down the line. If you rent, 30 years later you've spent that money and other than having a roof over your head you have nothing to show for it. With a home, the payments are an investment, something you can sell and get money back.
it depends on if you rent and invested elsewhere . that was just what we did and did far better investing elsewhere then having that equity tied up in the house .
so mileage and situations will vary for everyone . you can rent and do even better financially so one way is not better then another . they are all going to be unique to you
it depends on if you rent and invested elsewhere . that was just what we did and did far better investing elsewhere then having that equity tied up in the house .
so mileage and situations will vary for everyone . you can rent and do even better financially so one way is not better then another . they are all going to be unique to you
In some cases though there isn't enough cash flow to do both. Everybody's situation is different.
Obviously home ownership can be a high risk. If you purchase a home in an area where real estate tanks, you could be upside down and lose. That also happens investing elsewhere. Sometimes it makes sense to sit with a financial planner who can at least spell out potential futures based on current wants.
that is why i say it vary's . today 43% of all sales are all cash deals so lots of folks do have the resources and choice's in what to do or whether to invest in other things. but again that is something each one of us has to decide as not all of us are investors at heart , pucker factor or skill .
i preferred renting and investing in commercial property in nyc . far more lucrative then the money tied up locked up in a house and today that gave us the ability to buy multiple houses if we wanted instead of owning just one .
should you have done that or could you ? can't say .
Last edited by mathjak107; 05-08-2016 at 08:32 AM..
i rented, then trailer life, then built a house, if i had to do over. I would keep renting and just have enough stuff to fill, the car. No storage items. ever couple years move to a nicer place, maybe an apartment on the beach for a while. Just follow the jobs, have enough stuff for the car and a very small uhaul trailer, be out in two hours.
with the house it take me months, plus all the extra money you got to put into the house to sell, be cheaper to bulldoze
I own a home but live by myself and am 99% sure I will NOT be living in this area when I retire (many years from now - I am 42), and with any luck, will not be living in this area much longer. My mortgage is very reasonable (about 750), and I pay about $3K/year in property taxes. I have no other debt. I am looking to make a change career-wise and location-wise, so I have been saving money for this transition. I have enough $$ to live for approximately 2 years (with my current expenses, which I know are low compared to other areas). I am in the process of downsizing so that I will be ready for a move, and because I am tired of having a bunch of stuff I don't need/use anyway. I have been thinking about it, and it seems to me it would make sense to rent a place, even if the rent is a little more than what I pay in mortgage, because I wouldn't have taxes, utilities would likely be less, i wouldn't have to replace the HVAC system, less (or no) lawn maintenance, etc. I think in the short term it would be cheaper, and I could save more $$ for my transition (whenever that happens to be). I will never pay off this house because I know I won't stay in it long enough. It is a 3 BR, 2 BA ranch, Zillow says approximately $172K, but not sure in this area I would actually get that out of it. What are your opinions?
If your time frame before your intended move is short, for example just a year or two which it sounds like you are saying, I'd sell right now and rent because it takes a while to sell.
Moving is expensive in itself, a lot more expensive than what is obvious. Or at least, it was for me when I moved last summer.
For long term time frames, I prefer owning a home for many reasons including no increases in rent, privacy, and the emotional satisfaction of knowing that my home is my castle, so to speak. In my particular location owning is less expensive than renting in the long term. That may or may not be true in your location.
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