Why do transplants insist on buying a house instead of renting? (to rent, condo)

[queenswake]

Originally Posted by kuan

Because many companies pay closing costs, moving costs, temporary housing costs, and a signing bonus.

Even now? I was under the impression that relocation benefits had all but disappeared except for executive-level positions.

[Min-Chi-Cbus]

It's very rare....unless you're a "higher up", division level manager/director....MAYBE.

[knke0204]

It's a tough time out there right now...

Many peers of mine would love to buy a house but can't. All you hear about is how great the market is for buying homes with low-costs, low intrest rates and availibility of homes. However, many places won't give you a mortgage unless you have 10-20% down and impeccable credit. Many of my friends have student loans and just having those loans hinders their ability to get any type of borrowed money.

Also with this economy, not many people my age can take on the burden of a $1000-$2000 mortgage. So what they do, they stick to renting a room in a house, or getting an apartment with a roommate for $700-900 a month. Or rent a pile of crap on their own for $500-600 mo. At lease with the unstable job market, if something happens, there's always mom and dad's house and not a forclosure...

Also, many of my peers are young working professionals who have a stable job but are not there enough to take on the burden of homeownership. Homeownership is a chore and a responsibility. I have many friends who work all day, spend their evenings socializing and only really sleep at their place. With no time or desire to keep up with thins like mowing, shoveling, painting, trimming, plumbing, maintenance, etc., they just stick to rent and let someone do it.

Golfgal- It's not like all 'rentals' are slums. Your picture of a rental is wrong. It's not all cheap apartments with loud music playing all day long.
Most of the places my peers rent are nice, new apartments. Most new apartments are built with soundproof instulated walls and are actually really nice... Nice views, space, nice halls, quiet, comfortable, with pools, gyms, spas and rec rooms.

Look at homeownership now. It's a joke. Most people use more than 40% of their income on their 'mortgage'. Many people are forever screwed for taking on the burden of homeownership. Many people spent years working hard to pay a mortgage, but with the market now have little to no equity and a whopping mortgage staring back at them.

[flyonpa]

My Company give the people they move a full package, Costs to sell your house, Pack/move/unpack. (car also if you want it) Airfare to get to new location, Some hotels/rental cars Etc. . But you only get it 1x. If you 'rent' thats it. When you then buy, all thats on you. So the $'s make you buy when you transplant in.

Also I would not want to have my son change school if we went from renting to owning. You just do good research find the best place to move to and do it. Yes after being here for a few years, I would like to have gotten a house bout 5 miles from here, but the difference is so small I would not 'move' to be in that area now.

[kuan]

It's not rare. The company my wife works for does it for every scientist and engineer, even fresh out of school engineers and scientists.

[BillWallace]

While knke0204 has one perspective, it doesn't really tie in with actual data.

This survey from Trulia came out just last week - News Room - Trulia.com - Press Releases

It shows that the vast majority of Americans view home ownership as part of the American Dream. More amazingly, it shows that 88% of 18-34 year olds aspire to home ownership.

Also, a recent Coldwell Banker survey of first time homebuyers found the following -

§ 67% said the market allowed them to buy a home sooner than expected
§ 50% said they found a home in a more desirable neighborhood than expected
§ 61% were able to get the home at a better price than expected
§ 40% got more space than expected
§ 43% locked in a lower interest rate than expected
Obviously, many first time homebuyers have been pleasantly surprised with their purchases.

[golfgal]

Originally Posted by knke0204

It's a tough time out there right now...

Many peers of mine would love to buy a house but can't. All you hear about is how great the market is for buying homes with low-costs, low intrest rates and availibility of homes. However, many places won't give you a mortgage unless you have 10-20% down and impeccable credit. Many of my friends have student loans and just having those loans hinders their ability to get any type of borrowed money.

Also with this economy, not many people my age can take on the burden of a $1000-$2000 mortgage. So what they do, they stick to renting a room in a house, or getting an apartment with a roommate for $700-900 a month. Or rent a pile of crap on their own for $500-600 mo. At lease with the unstable job market, if something happens, there's always mom and dad's house and not a forclosure...

Also, many of my peers are young working professionals who have a stable job but are not there enough to take on the burden of homeownership. Homeownership is a chore and a responsibility. I have many friends who work all day, spend their evenings socializing and only really sleep at their place. With no time or desire to keep up with thins like mowing, shoveling, painting, trimming, plumbing, maintenance, etc., they just stick to rent and let someone do it.

Golfgal- It's not like all 'rentals' are slums. Your picture of a rental is wrong. It's not all cheap apartments with loud music playing all day long.
Most of the places my peers rent are nice, new apartments. Most new apartments are built with soundproof instulated walls and are actually really nice... Nice views, space, nice halls, quiet, comfortable, with pools, gyms, spas and rec rooms.

Look at homeownership now. It's a joke. Most people use more than 40% of their income on their 'mortgage'. Many people are forever screwed for taking on the burden of homeownership. Many people spent years working hard to pay a mortgage, but with the market now have little to no equity and a whopping mortgage staring back at them.

Never said they were slums, you still have to deal with common walls, hallways, neighbors, parking, etc. Sorry, renting just stinks, especially after you have owned your own home.

[FamousBlueRaincoat]

Originally Posted by golfgal

Never said they were slums, you still have to deal with common walls, hallways, neighbors, parking, etc. Sorry, renting just stinks, especially after you have owned your own home.

With the exception of hallways, those are all things that many people have to deal with anyway. And unless one is living in some wild college party building, hallways seem rather irrelevant. If you live in an older building, common walls shouldn't really be a problem at all, whether you own a house or an apartment. I rent, and my two walls have owners on the other side. I don't see how their situation is any different than mine, other than their mortgage and having to pay all their own utilities and upkeep expenses. There are no parking spots in my neighborhood, whether someone paid a million dollars for their home, owns a condo, or rents - we all use the same street. We are all neighbors with each other, and I have no complaints about any of them. I guess they could have complaints about me, but I doubt it.

Not that there aren't good things about home-owning. I think what you listed is just too stereotypical - it might match your experiences, and the experiences of people who lived in bad buildings or neighborhoods. But in this day and age, it's easier than ever to know what you're getting yourself into beforehand.

[knke0204]

Originally Posted by golfgal

Never said they were slums, you still have to deal with common walls, hallways, neighbors, parking, etc. Sorry, renting just stinks, especially after you have owned your own home.

Well, renting in your opinion 'stinks'.

I know many who did the home and yard thing that have traded it in for a townhome with little to NO maintenance. My uncle is a prime example. Had an acre spread with the yard and whole 9 yards... He now spends much of his time travelling and rents a 3 bedroom townhome. His driveway is shoveled and his yard gets mowed.... I guess he has 'common walls' but when you're inside you can't even tell you're surrounded by people. He also has 'neighbors' too, but don't we all? All he worries about is having is rent come directly out of his account each month while he's travelling.

Homeownership isn't always roses and fairy tales.

[knke0204]

Originally Posted by golfgal

Never said they were slums, you still have to deal with common walls, hallways, neighbors, parking, etc. Sorry, renting just stinks, especially after you have owned your own home.

I guess....

Renting has its advantages and disadvantages.

Personally, I would love to own a home... but it's not in the cards. I don't have $20,000 for a down payment or $250 a month in escrow on top of a $800 mortgage... its just impossible.