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Rent or Buy?

T

Triforceofcourage

Platinum Member
Which decision would you make? Move out of parents house now and rent an apartment or live with family for a year and save enough for a down payment on a house or Condo to buy? Keep in mind I just graduated from college 🙂
 
Originally posted by: Juice Box
rent is throwing money away
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says the one living at home

Depends how old you are and your financial situation. If you are desperate to get out on your own then do it, if like living with the 'rents then stick it out for a while.
 
Originally posted by: AnyMal
Originally posted by: Juice Box
rent is throwing money away
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Since when does providing a roof for a family is considered a "throwing money away"? 😕
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He means that all the money that you spend will be going to waste in the long run.
 
Originally posted by: AnyMal
Originally posted by: Juice Box
rent is throwing money away
Click to expand...

Since when does providing a roof for a family is considered a "throwing money away"? 😕
Click to expand...

When you can pay just a little bit more and OWN something, and have something to show for it... comparatively speaking renting is indeed throwing money away. After a year of living at that apartment you have absolutely NOTHING to show for it. Whereas if you pay a slight bit more for a little house, after a year of payments you own something and you will build up equity in that house. If you don't mind living at home, I say you save your money and get a house. Thats what I am doing.
 
Originally posted by: Xyclone
Originally posted by: AnyMal
Originally posted by: Juice Box
rent is throwing money away
Click to expand...

Since when does providing a roof for a family is considered a "throwing money away"? 😕
Click to expand...

He means that all the money that you spend will be going to waste in the long run.
Click to expand...

Not being homeless is not a waste IMO. I don't know when was the last time an of you shopped for a mortgage, but since I'm in the process right now I'll tell you that going from rent to own is not "spent a little more" thing. We'll have to almost double what we pay now in rent.
 
Originally posted by: Cuda1447
Originally posted by: AnyMal
Originally posted by: Juice Box
rent is throwing money away
Click to expand...

Since when does providing a roof for a family is considered a "throwing money away"? 😕
Click to expand...

When you can pay just a little bit more and OWN something, and have something to show for it... comparatively speaking renting is indeed throwing money away. After a year of living at that apartment you have absolutely NOTHING to show for it. Whereas if you pay a slight bit more for a little house, after a year of payments you own something and you will build up equity in that house. If you don't mind living at home, I say you save your money and get a house. Thats what I am doing.
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And what does that mean to OWN something? If you consider the cost of maintaining a home, the interest, etc. it's quite possible that someone who rents can actually come out ahead. I own a home, but as a consultant I travel quite a lot, and I'm in the process of selling my home because I'll actually have a greater return on my money by renting and putting the excess into my investments. Unless you live in one of the housing markets that's appreciated like Google (and I don't necessarily mean that in a good way either) I'll more than likely beat your ROI by renting.

The basic idea is this: There are never any hard rules when it comes to investments.
 
Originally posted by: Descartes
Originally posted by: Cuda1447
Originally posted by: AnyMal
Originally posted by: Juice Box
rent is throwing money away
Click to expand...

Since when does providing a roof for a family is considered a "throwing money away"? 😕
Click to expand...

When you can pay just a little bit more and OWN something, and have something to show for it... comparatively speaking renting is indeed throwing money away. After a year of living at that apartment you have absolutely NOTHING to show for it. Whereas if you pay a slight bit more for a little house, after a year of payments you own something and you will build up equity in that house. If you don't mind living at home, I say you save your money and get a house. Thats what I am doing.
Click to expand...

And what does that mean to OWN something? If you consider the cost of maintaining a home, the interest, etc. it's quite possible that someone who rents can actually come out ahead. I own a home, but as a consultant I travel quite a lot, and I'm in the process of selling my home because I'll actually have a greater return on my money by renting and putting the excess into my investments. Unless you live in one of the housing markets that's appreciated like Google (and I don't necessarily mean that in a good way either) I'll more than likely beat your ROI by renting.

The basic idea is this: There are never any hard rules when it comes to investments.
Click to expand...


You are assuming the OP would be taking the rest of his money and investing it in something, which is probably not the case.
 
A house might cost more in a bad market, but I would rather have peace of mind from not hearing my neighbors above me. If my house ever does close, Text I will also look forward to being able to watch movies in my theater like they were meant to be watched. It's the little things that add up for me. Not having to scrape my car off in the winter, etc.

If things are good at home then I would suggest you stay there. Rent is throwing money away, but so is buying a house. Staying put is free 🙂. If the market does go south, renting will really be worth it. In my area they don't have a lot of houses for rent, but in some areas they do, so you get the lower cost benefit of being a renter and the space of being a homeowner.
 
It's only worth it to buy if you are going to be in a place for 5 or more years. Sure, you can sell the house if you move, but there are all sorts of fees and closing costs you will be paying when you sell the old place and buy a new place.
 
Originally posted by: Taggart
It's only worth it to buy if you are going to be in a place for 5 or more years. Sure, you can sell the house if you move, but there are all sorts of fees and closing costs you will be paying when you sell the old place and buy a new place.
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Thats not entirely true. In many housing markets currently, you can make a lot of money on the appreciation of a house in one year. I know of many people that buy houses just to flip them, and make good money doing so. They never even live there.
 
Originally posted by: Juice Box
rent is throwing money away
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I wouldn't say it's throwing away money. You get a roof over your head and shelter, and it comes at a price. It's like saying spending money on food is throwing money away. Owning a home isn't cheap.
 
Originally posted by: Juice Box
rent is throwing money away
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Nah.

If you take into consideration property taxes, and the amount of your monthly house payment that goes towards the interest part of your house loan, renting can come out cheaper.

I doubt that $5700 a year (my current rent) is enough to cover the property taxes, the interest, and the principal on a house.

Money that goes towards interest on your mortgage is money that's thrown away.
 
Rent is throwing money away...

BUT, my boss is paying $12,000 per year in interest on his mortgage. Add another $6,000 in taxes. That's throwing money away too.
 
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