Topic: Is renting an inevitable waste of money? - page 11. (Read 2609 times)

What's your religion? I have never heard of a religion that teaches its members to keep on moving. Maybe that's sort of some metaphor or figure of speech that has a meaning about moving forward in life and not in location.
Those that sell old homes to buy a new one is normal and there are business folks that do buy and sell homes and if it's in a good location, they'll have it rented.

Quite accurate all of it. I look at in this way:

- If you buy, it may rise in value, go lower, you may loose money or not. If you rent, you are certain you will loose it all.

- You cannot be sure if you can make your payments, but you would not be sure you can pay rent either. However, if you have managed to pay at least for a few years, you have equity on the property (part of it is yours, not the banks). You can sell it and go renting something cheaper, is not like if you are left with nothing (unless a super-crisis 2008 style that might actually make you loose).

- On relationships: same case, if you divorce you can sell it. Make sure there is an agreement on that before you buy. Only caveat with it is kids and rights to your partner so, again, an agreement could be useful if possible at all depending on your country's law.

- Finding the ideal house is impossible as renter, and is also impossible as a buyer unless you have unlimited budget. There is also an extra you could have: an extra room, an utility room, a top-floor, a garage, a garden, a very large house, a swimming pool... You always have to settle with something and, if an expensive area, you will have to settle with no-frills properties and feel a bit "constrained" perhaps.

The market I am in is super-hot. It means that finance is very available and there are many people that use property as a business. The fact that interest-only credits are available makes prices higher. I will open a thread on that now that I think of it.

That is correct - but one can sell the old home and get a new one.
In our religion we are advise to keep moving - this is one of the ways to lean. that life is not easy and that you should travel light

We don't need to give ourselves bother or load because of relationship that have not be pronounce as husband and wife. And secondly i cant date or be into relationship for Three years without conclusion of marriage, i know that marriage is a life thing and you have to make sure that you find a good one. That's we guys make when woman is close to us, we do borrow, take loan because of woman all the name of satisfied a woman, it's bad, maybe is from the country you are.

We need to work really hard to keep the property in a good condition.
I have started a rental project and it more of the repair and maintenance - people would not mention what they have broke or damaged. They would sneak out quietly and you keep repairing for the damage made.

Since the time I have started an airbnb project - I give half of my amount to the rent. I am always worried for the next month rent.
I pay the recent month rent and then the next comes in a jiffy - I think one should have one own small place - to decorate with love.

You could say this rental business is also a property business because rent takes the form of a house, place, or land. Right now many rich people in my country deliberately build a place where it is very compatible for selling, whether it's electronics, kitchen needs, and others. they don't treat the buying system, because by renting the owner still has full rights over the place but gets passive income from the results of the monthly rental fees. For those who have a place to rent, it is a smart move, but for those who rent it can be said that it is an inevitable waste of money, but at least both parties can benefit each other.

We all want to have our own place but renting is the solution for those that are moving from time to time. Like those who are digital nomads, they can transfer from one place to another and that's why it's very easy for them to move.
They don't need to think of anything they have to cover as their asset because for them, it's too easy and there's no hassle at all when they're moving from country to country. Adaptation is also interesting because they learn to bear with new culture.

Moving to another place is hard. Be it a new city or the country
And I think the answer to this question varies. I am not in favour of Rent all the time - I would like to have my own place.

I would like to ask people that say they want to be flexible, to travel and live in different places - how many times did they really changed their jobs or moved to different place to live ? Travelling and being flexible is two different things imo. I still travel and it is always nice to return home. Those who prefer to be flexible - where is their home? It more like temporary housing. People in search for themselves.

Perhaps I am old fashioned, but I prefer to stick to one more or less place job, and become a professional, irreplaceable specialist. Then to jump over city or cities, try different job, rent different places.

1. Any rental of residential real estate (passive rental) is a cost, and REGULAR. You have to be very careful with them. Active rental of real estate is, for example, the rental of a production hall or a warehouse for products - i.e. the rent that provides you with INCOME.
2. It doesn't really matter where you live. The rental price is proportional to the average income in the country/region/city where the residential property is being rented. But there may be nuances. for example, if you decide to rent a luxury apartment in a not very rich country. This is hardly reasonable if you do not have an appropriate regular income to pay for it painlessly.
3. For my part, I will say that until "stabilization of your life", renting an apartment acceptable to your level of income is a reasonable decision, albeit an expense. Let me explain. As long as you do not have a family, children, or your own business, you will most likely look for places for higher-paying jobs, more comfortable living conditions, etc. Therefore, most likely you will be moving from one area of the city to another, or another city, or another region (and possibly to another country). And Buying a property will become a burden. If you have not paid 100% of the property immediately, and you need to leave, you will have the following balance:
(your income) - (mortgage payments) - (payments for renting a new property) - (one-time moving costs) + (rent from your rented apartment). As a rule, mortgage payments are noticeable, and I'm not sure that they will be covered by renting out your property, which will remain in the place where you moved from.

I was lucky, and I did not leave my city. Once I bought my first apartment, then a child appeared - they sold the existing one and bought the next apartment, then they decided to improve living conditions, in a more comfortable place - they bought another apartment, and we rent out the one in which we previously lived. But before buying the first apartment - I rented a house, it was up to 26 years. Rented housing in proportion to my income, so that the rent does not exceed 15-20% of my income

Most plans have rock-solid foundations when they are first created. But, most of these plans do not take into account the possible unforeseen circumstances that can happen along the way. These are the things that foil up a plan that causes its failure. So no matter how great the plan is on paper, if something happens that you're totally unprepared for, your plans will crumble. Similar to investments - if one single bad thing happened to your investments, you'll see your money dwindling away at a very alarming rate. So it's really great to have a stable career before you get that mortgage for a house because you'll never know when you're going to lose it all and really regret paying for a mortgage only for it to be taken away from you just because you can no longer pay for it.

some people are very good in calculations but the plans not always work as we think.
There is a supreme power which is also moving the world and we must keep that in mind. In all we plan - we must seek the will of the GOd . . this is my personal opinion you may disagree.

With the passage of time - especially after COVID and this recent earthquake. I am now losing interest in worldly things.
I now believe one should have small house and a good emergency fund and nothing more than that - we all will be dying one day and nothing will be helping us.

You can calculate the answer to your question, it most markets but not all it’s cheaper to rent when you look at the first 5 yrs of house ownership. At 5-15 it starts skewing to ownership and 15+ totally owning.

IMHO the time you expect to stay where you are becomes the more the moot point about whether you should buy or stay renting.

If you’re not buying to live in, but as an investment think of it as a savings account, where other people are basically paying into your savings account. General rule of thumb is make 5+% net annually and do not consider value appreciation, depreciation, tax breaks, saving interest etc in that calculation. Also consider most investors don’t borrow for the first one.

Nothing beats to have your own house as you will not think about the monthly rent, most of us if not all will agree the
convenient that you will get when you own a house.

And like with yur argument, it's good to travel knowing that any time you can simply go back
with a comfort of your own house. Investment wise, you can save your monthly rent and use
it for your own business.

I quite agree with you as having your own place is more better than renting out a apartment. For one, i too feel comfortable living in my own home with no fear of eviction from anyone.
Obviously, when you’re young and starting out on your own, you might be forced to rent. While people rent cause it helps them to be more flexible and not stuck in one place. I think having your own place doesn’t stop you from being flexible. It’s best having your own home as you could do all the traveling and exploring you want and still have a home to come back to and lay your head. I think nothing beats having your own place.

If the life turns its back on me and I be force to rent, I will rent, but in other situations I will try my best to have my own place. I feel more comfortable if I own the place. No matter what agreement or contract you have, place owner can always find a way to kick your out when you rent. I prefer to have small but my own, instead of living in one's trunks.

Would gladly read posts from users that rent for a long period (not exactly one place). What benefits they have. I've already read that some people rent, because it allows them to travel and not to stick to one place. My job forces me to stick to one place. And my city isnt that big (1 million citizens only) to want to try to live in different city places because of its specific areas and needs. In case I need something I have a car or can get there by taxi.

$400 is a big amount for a developing country like ours.
However with the passage of time I believe one should have a small place - a dream home of one own rather than renting one should spend in on their own home

Calling renting an inevitable was of money is quite a narrow view of reality I think. I mean what would the world be without the option to rent places? I am not only looking at it from the perspective of going on vacation, but being able to rent a place significantly increases global workforce mobility for instance. If you get to work in a dream job but you are only willing to do it for say 3 to 5 years in a place in a foreign country, buying a house there might not be possible nor feasible financially. Being able to rent a place is the perfect solution. Think about all those shared places as well and how students organize themselves these days in order to reduce individual cost. All of those advantages come with renting. While you do incur a certain kind of opportunity cost due to renting, you open up a different range of options for you at the same time. You can quickly switch places, you can increase your personal lifestyle if that is of more importance to you than owning property at a certain point of your life. The generalization of it being a waste of money goes too far I believe. I know what you are trying to say but there is a reason why option carry true financial value and renting gives you options, hence is not only a cost factor.