It depends on the market conditions. If you can put $1m in BTC and rent a place for a year, and the BTC price double in that time and your rent is less than $1m over that period, then renting was a good decision, because the BTC investment turned out better than the potential real estate investment.
Interest rates are important too.
One thing people often miss is when you own, the mortgage payments are not your housing cost, because they consist of principal and interest payments and only the latter component is your cost. Principal repayments add to your equity; you're just moving money from one pocket to another.
E.g. if your monthly mortgage payments are $1000, $700 of which is principal and $300 of which is interest, you're only paying $300 to live. You're unlikely to find a place to rent for that little. The remaining $700, however, is a commitment to move money from one pocket to another, and you have to have it or you'll get in trouble.
Low interest rate environments favor owning your home, but they also lead to property price bubbles, because when it makes more sense to own, more people do it and prices go up. An arbitrage opportunity arises and gets arbed out. So if you bought a year ago, your house may be worth less now that the interest rates are higher.
But then again, when interest rates are high and you're tempted to rent, the higher mortgage costs are passed onto tenants. So it may be a good time to buy, especially if you don't have to commit to the current high rates for long.
All in all, owning is good and it tends to be a safe investment with less volatility than many other investments. If you can afford it, it puts you ahead of many who can't, even if otherwise the conditions favor it. This creates a market inefficiency which you can exploit.
Topic: Is renting an inevitable waste of money? - page 12. (Read 2609 times)
Whether renting is a waste of money or not depends on on the individual and where they live. Is the cost of living high or low? Do you live in a metropolitan area or in the suburbs? What's are the rules and regulations governing renting or buying your own property. When the individual has been able to answer this question and many more then they will come to the conclusion whether renting is a waste.
There are so many different situations you need to find the setup that works for you. Some people get lucky with a flat share with friends at a fraction of the market rate, others get trapped with the worst housemates out of necessity yet still pay high amounts due to the local area, some people who buy a house pay stupid interest rates because they do no research while others are running optimum finances that make a mortgage the best option. It can be hard to find the ideal house as a buyer because your budget is often fixed at the limits of what you can afford, many people start off with buying a flat which comes with the possibility of problems you identified as a renter.
My brother is fine with having a few roommates; I, on the other hand, can't stand having more than one, and I'm also picky and a little difficult as a person. I want to have my own space and not have to worry that my actions or preferences may disturb someone. Thus, it's not an ideal solution for myself; I'm getting along just fine with my girlfriend, though there are minor issues. If I were to get a loan for an apartment, I'd choose an older one that required repairs that I'd work on myself in order to save money, and we'd put personal effort and dedication into that house. The feeling that you've created something with your own hands and personal work is exceptionally satisfying.This is all to get rid of the rent - sometime. you dont have funds to payoff the rent. I think one should have a roof over your head. Not a RENTED roof - but your own roof.
There are so many different situations you need to find the setup that works for you. Some people get lucky with a flat share with friends at a fraction of the market rate, others get trapped with the worst housemates out of necessity yet still pay high amounts due to the local area, some people who buy a house pay stupid interest rates because they do no research while others are running optimum finances that make a mortgage the best option. It can be hard to find the ideal house as a buyer because your budget is often fixed at the limits of what you can afford, many people start off with buying a flat which comes with the possibility of problems you identified as a renter.
My brother is fine with having a few roommates; I, on the other hand, can't stand having more than one, and I'm also picky and a little difficult as a person. I want to have my own space and not have to worry that my actions or preferences may disturb someone. Thus, it's not an ideal solution for myself; I'm getting along just fine with my girlfriend, though there are minor issues. If I were to get a loan for an apartment, I'd choose an older one that required repairs that I'd work on myself in order to save money, and we'd put personal effort and dedication into that house. The feeling that you've created something with your own hands and personal work is exceptionally satisfying. The correct answer depends on the country you are in. If the city is expensive, like New-York for example, renting is your only solution to live there. For example in my city the amount people pay for 2 bedroom rent + utility bills equals paying out loan for same 2 bedroom flat. Financially having a rent flat isnt profitable, but you will have to stick to one place for 15-20 years if you take a loan, when youth dream is to move to other country, and elder generation does not feel stability in keeping work.
Not only in New York, but the demand for housing has also increased, and housing finance is a significant issue in my region, so there is no way you can avoid renting. Currently, renting an apartment is even harder to obtain, and because of the high demand it has affected the price, owning a house is now so ridiculously expensive, and the majority of NGOs that help with the housing problem are not very functional in my area.Maybe many people just want to go with the flow while the other people do plan for what they have to do in their life.. .
Renting has its disadvantages - at any time the fee can be increased, there is no stability (there can always be a need to move out urgently), problems with repairs. so it is necessary to have your own housing in any condition and of any size (at least a room in an apartment). However, renting is not a waste of money - it gives a certain freedom of movement. And it's a basic option if you can't save for your own flat
Yes, that's true, but it comes back to our needs whether we need more rental housing or not. Renting is something that is profitable in certain situations and in other situations it will certainly be different. We have to consider everything including our needs.For example, we are not reasonable enough when we work outside the city with a contract work status, we have to buy or even pay off a house. Under these circumstances, renting is the best solution. It's different if we really live in that environment and have permanent jobs there.
The correct answer depends on the country you are in. If the city is expensive, like New-York for example, renting is your only solution to live there. For example in my city the amount people pay for 2 bedroom rent + utility bills equals paying out loan for same 2 bedroom flat. Financially having a rent flat isnt profitable, but you will have to stick to one place for 15-20 years if you take a loan, when youth dream is to move to other country, and elder generation does not feel stability in keeping work.
Not only in New York, but the demand for housing has also increased, and housing finance is a significant issue in my region, so there is no way you can avoid renting. Currently, renting an apartment is even harder to obtain, and because of the high demand it has affected the price, owning a house is now so ridiculously expensive, and the majority of NGOs that help with the housing problem are not very functional in my area. 
Renting has its disadvantages - at any time the fee can be increased, there is no stability (there can always be a need to move out urgently), problems with repairs. so it is necessary to have your own housing in any condition and of any size (at least a room in an apartment). However, renting is not a waste of money - it gives a certain freedom of movement. And it's a basic option if you can't save for your own flat
Actually, both have an advantages and disadvantages. Renting may be a waste of money if you have found a housing project (government funded or not) that's pretty affordable and it's monthly amortization was close to what's you're paying for the apartment you're renting. Because, basically, we're gonna be working for the rest of our life's to survive, therefore we don't need to worry on whether or not we can sustain payments for a 15-20 year term. Nevertheless, if you end up being not able to work because of serious injuries, I guess loans are protected with insurance as such, including death.
However, as per OP's situation, it does only make sense that they're not settled with his girlfriend as he also was uncertain of what their future may look like and how are they gonna end up paying the property when in case they've got separated.
Renting has its disadvantages - at any time the fee can be increased, there is no stability (there can always be a need to move out urgently), problems with repairs. so it is necessary to have your own housing in any condition and of any size (at least a room in an apartment). However, renting is not a waste of money - it gives a certain freedom of movement. And it's a basic option if you can't save for your own flat
Life is full of risk, but if you have a stable income that can pay off a long-term loan, I must say that a loan for the acquisition of a house is worth taking because all this rent is just temporary, and after some time the owner can just chase you out of the house and you will be left with nothing, it's better to be a house owner and pay back the loan instalmentally than living in a rented apartment. The sweet thing here is that you are in a country that will give you a loan up to the amount that will make buying a house worthwhile. If I have this opportunity here, I will grab it with both hands.
In today's uncertain economic climate, buying a house may not be the best financial decision for many people. With housing prices depreciating in the US and potentially in other countries in the future, taking out a loan to buy a property is not a safe investment. Instead of paying high monthly loan payments, it's better to rent a property. Renting eliminates the additional charges associated with homeownership, such as property taxes, maintenance, and repairs. Rent payments are typically lower than loan payments, freeing up more money for other expenses.Renting also provides greater flexibility when it comes to choosing a location. If you need to move for work or personal reasons, you can simply find a new rental property, instead of being stuck in a single place. Renting can be a smarter financial choice for many people and allows them to have more freedom and flexibility in their housing choices.
I do agree if the commitment is surely but, to make it sure then they have to get married. That's the only way to assure that their relationship should be assured and that's the time that they should buy a house and pay for its mortgage.
I've seen couples that have decided to take house loan but they're not yet tied to each other. In the end, many have become problematic and they didn't anticipated that they'll be ending with a break up.
I cant really believe that there are couples who had decided to take up some loan even if they arent that married and on the time that they would be having a break up then the ones who had signed those papers is I've seen couples that have decided to take house loan but they're not yet tied to each other. In the end, many have become problematic and they didn't anticipated that they'll be ending with a break up.
the one would be sued out or be asked out for those mortgages which is bullshit for someone to agreed upon.If you are really that legally married then it would really be that understandable that you both
do have rights about your priorities or something that do talks about conjugal property which is really that very common.
Renting isnt a waste of money specially if you dont have still the money for you to have your own house.There's no other options left when you are not financially ready.
Renting is convenience for those that are moving from one city to another. Also, getting a home through loan is really a decision that should be taken seriously.
It has to be decided and needs thinking for several times before doing it whether you're a couple or just alone.
Ironically renting can be a position akin to holding cash, not usually a great idea but in some situations far more profitable then being caught holding property which could be rapidly depreciating. Also it really depends on the circumstances, having a family usually means a house is required where as a single person might be moving about so much property is really not a necessity as they are often away from home it would not be fully used anyway.
with renting you are just become the cow for the landlord, you will never get to feel less burdened by not paying rent for eternity, that's reason why property are so much expensive right now because it's very essential.
I always believe that in building your wealth when you got your first millions or something you should buy house, that way you will have good minds to start your activities everyday and more enjoyable life, even taking up some loan is fine if you could but if your money so limited you could only rent then that's fine too maybe next time.
but if it's some place that's very strategic in the center of the city where it's near your works where sometimes the price of property there doesn't even make sense then you should just try renting.
I always believe that in building your wealth when you got your first millions or something you should buy house, that way you will have good minds to start your activities everyday and more enjoyable life, even taking up some loan is fine if you could but if your money so limited you could only rent then that's fine too maybe next time.
but if it's some place that's very strategic in the center of the city where it's near your works where sometimes the price of property there doesn't even make sense then you should just try renting.
The location is one of the major factors for one to look at the rent or taking a loan for building their homes.
I've got friends that have settled in rural areas where lands aren't expensive and they can just work remotely which is the benefits that they've got from the company.
As we all know, working from home now is the setup that majority likes and favorable although not all really likes that setup.
So, renting is good for short term so that you can move anytime you want.
I've got friends that have settled in rural areas where lands aren't expensive and they can just work remotely which is the benefits that they've got from the company.
As we all know, working from home now is the setup that majority likes and favorable although not all really likes that setup.
So, renting is good for short term so that you can move anytime you want.
In the short term, renting is generally good and convenient but OP's dilemma lies in whether to buy a house considering all the factors/risks that may happen in the future. I wouldn't worry about all the possible factors coming from the external environment but would review the relationship seriously. If OP is 100% confident in the commitment with his girlfriend and would not fear that the relationship may break, why not buy a house ? Otherwise, any breakup or divorce in the future would severely ruin everything and drag OP into a mess that he may never come out of. I guess this is the focal point to really think about.
I've seen couples that have decided to take house loan but they're not yet tied to each other. In the end, many have become problematic and they didn't anticipated that they'll be ending with a break up.
the one would be sued out or be asked out for those mortgages which is bullshit for someone to agreed upon.If you are really that legally married then it would really be that understandable that you both
do have rights about your priorities or something that do talks about conjugal property which is really that very common.
Renting isnt a waste of money specially if you dont have still the money for you to have your own house.There's no other options left when you are not financially ready.
If you're young and haven't inherited a property from your ancestors, chances are that you're forced to rent. Personally, I've been renting for over 6 years and have been living with my girlfriend for the last 4, sharing rent and utilities. Overall, we've both spent over €25,000 together, and after spending all this money, you're practically left with nothing and may be subject to looking for a new house at any moment.
The average rent for a one-bedroom apartment is between €300 and €400 at best; thus, I was thinking that taking a loan is as costly as paying rent per month, but after 15-20 years, you end up with a house. My main concerns are the following: First, if you're in a long-term relationship like myself, you can never be 100% sure that you'll be with that person in 20 or 30 years from now, which might prevent you from opting for a loan. Secondly, you need to be certain that the location or city of the property to be bought is convenient for future job offers and so on. Thirdly, because a loan is a many-year commitment, there's no guarantee that you'll be able to afford the monthly payment 15 years from now.
On top of that, finding the ideal house as a renter is almost impossible; there's a lack of housing, and rents are extremely expensive and unreasonable at the same time. We had a difficult time finding a house recently, and it's far from ideal. There is now a new government-funded loan program that is about to start, funding up to 75% of the loan interest-free while the rest is funded by private banks and is subject to a relatively low interest rate. This led me to think about taking a loan and purchasing an average two-bedroom apartment, but I have the concerns that I voiced earlier.
The average rent for a one-bedroom apartment is between €300 and €400 at best; thus, I was thinking that taking a loan is as costly as paying rent per month, but after 15-20 years, you end up with a house. My main concerns are the following: First, if you're in a long-term relationship like myself, you can never be 100% sure that you'll be with that person in 20 or 30 years from now, which might prevent you from opting for a loan. Secondly, you need to be certain that the location or city of the property to be bought is convenient for future job offers and so on. Thirdly, because a loan is a many-year commitment, there's no guarantee that you'll be able to afford the monthly payment 15 years from now.
On top of that, finding the ideal house as a renter is almost impossible; there's a lack of housing, and rents are extremely expensive and unreasonable at the same time. We had a difficult time finding a house recently, and it's far from ideal. There is now a new government-funded loan program that is about to start, funding up to 75% of the loan interest-free while the rest is funded by private banks and is subject to a relatively low interest rate. This led me to think about taking a loan and purchasing an average two-bedroom apartment, but I have the concerns that I voiced earlier.
There are so many different situations you need to find the setup that works for you. Some people get lucky with a flat share with friends at a fraction of the market rate, others get trapped with the worst housemates out of necessity yet still pay high amounts due to the local area, some people who buy a house pay stupid interest rates because they do no research while others are running optimum finances that make a mortgage the best option. It can be hard to find the ideal house as a buyer because your budget is often fixed at the limits of what you can afford, many people start off with buying a flat which comes with the possibility of problems you identified as a renter.
The location is one of the major factors for one to look at the rent or taking a loan for building their homes.
I've got friends that have settled in rural areas where lands aren't expensive and they can just work remotely which is the benefits that they've got from the company.
As we all know, working from home now is the setup that majority likes and favorable although not all really likes that setup.
So, renting is good for short term so that you can move anytime you want.
I've got friends that have settled in rural areas where lands aren't expensive and they can just work remotely which is the benefits that they've got from the company.
As we all know, working from home now is the setup that majority likes and favorable although not all really likes that setup.
So, renting is good for short term so that you can move anytime you want.
In the short term, renting is generally good and convenient but OP's dilemma lies in whether to buy a house considering all the factors/risks that may happen in the future. I wouldn't worry about all the possible factors coming from the external environment but would review the relationship seriously. If OP is 100% confident in the commitment with his girlfriend and would not fear that the relationship may break, why not buy a house ? Otherwise, any breakup or divorce in the future would severely ruin everything and drag OP into a mess that he may never come out of. I guess this is the focal point to really think about.
I've seen couples that have decided to take house loan but they're not yet tied to each other. In the end, many have become problematic and they didn't anticipated that they'll be ending with a break up.
Life is full of risk, but if you have a stable income that can pay off a long-term loan, I must say that a loan for the acquisition of a house is worth taking because all this rent is just temporary, and after some time the owner can just chase you out of the house and you will be left with nothing, it's better to be a house owner and pay back the loan instalmentally than living in a rented apartment. The sweet thing here is that you are in a country that will give you a loan up to the amount that will make buying a house worthwhile. If I have this opportunity here, I will grab it with both hands.
Still a big risk I would say, I won't advise someone who works under a company or a boss to get a loan for a complete house, there is a dangerous part that you failed to see here.1. After taking the loan the company you working for might fold up, leaving you with no choice but to start hunting for another job and that depends on which part of the country you from, if you lose your job in my country you will see hell before getting another job.
2. Your boss might decide to sack you for unknown reasons, this happens a lot around me, I became financially stable since I stopped working for anyone but myself.
So if anyone wants to take a loan they must be sure of their source of income, way less riskier for those that work for themselves, not under a company or somebody.
My main concerns are the following: First, if you're in a long-term relationship like myself, you can never be 100% sure that you'll be with that person in 20 or 30 years from now, which might prevent you from opting for a loan.
have you thought about asking for rent from your s.o.?
The correct answer depends on the country you are in. If the city is expensive, like New-York for example, renting is your only solution to live there. For example in my city the amount people pay for 2 bedroom rent + utility bills equals paying out loan for same 2 bedroom flat. Financially having a rent flat isnt profitable, but you will have to stick to one place for 15-20 years if you take a loan, when youth dream is to move to other country, and elder generation does not feel stability in keeping work.
Where do you live if the case of renting a house will not be much different from conditions abroad. I mean, it's all based on income, land ownership, housing and if there's nothing to support it, there's one option, which is renting. It doesn't matter if it's long term or short term because housing is a must.In addition, related to the cost of rent that differentiates their place of residence, because talking about various incomes, most of them will rent a house that is closest to their place of work.
Eastern part of the Europe. You can rent a 2 bedroom flat in a new series house for 400-600 EUR with around 150 EUR monthly utility bill. And you can pay same money if you take mortgage. Its is usually either you rent, pay mortgage for that flat and help someone else to get a new property (which is illogical), or pay mortgage for your own property. Second option seems to be the best, but there are three problems 1) younger generation have difficulties to get a mortgage 2) younger generation want to move abroad (due to low salaries here and their high demands) 3) elder generation are used to what they have now and want to fight for a better future.
The correct answer depends on the country you are in. If the city is expensive, like New-York for example, renting is your only solution to live there. For example in my city the amount people pay for 2 bedroom rent + utility bills equals paying out loan for same 2 bedroom flat. Financially having a rent flat isnt profitable, but you will have to stick to one place for 15-20 years if you take a loan, when youth dream is to move to other country, and elder generation does not feel stability in keeping work.
The location is one of the major factors for one to look at the rent or taking a loan for building their homes.I've got friends that have settled in rural areas where lands aren't expensive and they can just work remotely which is the benefits that they've got from the company.
As we all know, working from home now is the setup that majority likes and favorable although not all really likes that setup.
So, renting is good for short term so that you can move anytime you want.
In the short term, renting is generally good and convenient but OP's dilemma lies in whether to buy a house considering all the factors/risks that may happen in the future. I wouldn't worry about all the possible factors coming from the external environment but would review the relationship seriously. If OP is 100% confident in the commitment with his girlfriend and would not fear that the relationship may break, why not buy a house ? Otherwise, any breakup or divorce in the future would severely ruin everything and drag OP into a mess that he may never come out of. I guess this is the focal point to really think about.
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