Renting isn't wasting money!
First you need to calculate how much the house price in your country and how much the price to rent a house. You also need to consider the inflation on your country, renovation, and calculate the average increasing price of your house and land every year. If the difference amount between the price house and the rent amount/bought it through loan isn't really too far, it's really worth to buy the house through loan or rent the house.
As long as you rent a property or stuff which you really need and useful for your daily life, there's no such wasting money even the price is really high.
Topic: Is renting an inevitable waste of money? - page 20. (Read 2609 times)
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.
Renting is not bad because someone need a place to live and before you think or do anything, this is important but what is bad is to rent an apartment that is beyond your earning income, that is what is bad. If you rent an apartment that you can still eat and make your other expenses balance then you have rented according to the seize of your income but if after you have rented the apartment then you allow other aspect of your financial live to suffer, you have not done a good calculation of your rent expenses. Usually you are suppose to have @least 10% of your income out for rent and not 20% or 30%.
If you're the type of guy who could stay in one place, having your own crib is better. Or if you've already reached that stage in life where you want to settle down with your girlfriend, then owning a place is also better. Not to mention that if you do the math, buying is indeed better than renting. I guess those are my bases.
I remembered reading a book about finance or wealth. It says that one way to develop your wealth is to own a house. I couldn't agree more.
To somebody who wants to change environment every now and then, though, owning a place might not be his/her cup of tea. That's probably me. Owning a house is not worth it if you're away for weeks or a month every now and then, or if your work requires you to travel and stay in different places for longer periods of time.
I remembered reading a book about finance or wealth. It says that one way to develop your wealth is to own a house. I couldn't agree more.
To somebody who wants to change environment every now and then, though, owning a place might not be his/her cup of tea. That's probably me. Owning a house is not worth it if you're away for weeks or a month every now and then, or if your work requires you to travel and stay in different places for longer periods of time.
Renting can definitely feel like a waste of money, as you're not building any long-term equity and you're at the mercy of landlords and rental market fluctuations. However, it does offer the flexibility to choose where you want to live in terms of location, city, and even country.
Buying a house can be a great investment, but it's important to consider the lifestyle and privileges that come with it. One option could be to buy a house and rent it out, using the income to pay for your own rent. However, this still requires a significant amount of money upfront and ongoing maintenance and management.
Personally, I prefer to invest my money in other areas and focus on building wealth through those investments. I'm pretty sure that the investment will earn me more money than a house. I was fortunate enough to inherit a house from my parents, and I'm also planning to buy a summerhouse but that's me.
I know I wrote a bit confusing
but in the end, it's up to you and your lifestyle. It's important to consider what works best for you and your individual circumstances.
Buying a house can be a great investment, but it's important to consider the lifestyle and privileges that come with it. One option could be to buy a house and rent it out, using the income to pay for your own rent. However, this still requires a significant amount of money upfront and ongoing maintenance and management.
Personally, I prefer to invest my money in other areas and focus on building wealth through those investments. I'm pretty sure that the investment will earn me more money than a house. I was fortunate enough to inherit a house from my parents, and I'm also planning to buy a summerhouse but that's me.
I know I wrote a bit confusing
but in the end, it's up to you and your lifestyle. It's important to consider what works best for you and your individual circumstances.
Calculate how much you'll be paying on a monthly basis and compare it to your rent; if they are close, then taking a loan is good, but remember that if you lose your source of income, you should immediately find another job. I don't know in what country you are living, but are there any government projects that are rent-to-own? or like they have housing? Try to find such a program on it, though I'm sure it was located in the city, but my best advice is that as long as both you and your girlfriend aren't planning on having a family, achieve your dreams first and get that house, because if you have a family and a child, you'll have difficulty getting it and paying a loan.
People take loan for houses, live rest of their lives paying for it. Renting is wiser choice imo. But, if you have means do get a house — you'll have roof to sleep under.
Many people pay the home off you would be surprised.
I have a lot of access to real estate data. In my town ½ the homes are paid off.
Some of the expert suggest loan a house instead of paying rent so at the end of mortgage period you will be left with an asset but it will not work every where especially you mentioned rent is cheap comparing to mortgage amount so here is what you should do.
Let's assume the house you want to buy has mortgage of 600 dollars per month but the rent for same house is 400 so here is what you should do, just choose rent and think you have to pay mortgage every month which means you have 200 dollars extra and you have to keep investing the amount every month into something with decent returns and low risk as long as you can, so at the end of 10 years you may not own a house but the investment you made all those years along with the compounding effect you will have much more money than the worth of that house.
Let's assume the house you want to buy has mortgage of 600 dollars per month but the rent for same house is 400 so here is what you should do, just choose rent and think you have to pay mortgage every month which means you have 200 dollars extra and you have to keep investing the amount every month into something with decent returns and low risk as long as you can, so at the end of 10 years you may not own a house but the investment you made all those years along with the compounding effect you will have much more money than the worth of that house.
People take loan for houses, live rest of their lives paying for it. Renting is wiser choice imo. But, if you have means do get a house — you'll have roof to sleep under.
A good question.
Renting only works if it lets you save on the side to have enough to buy a house.
A single couple like you ( the op ) Should be able to save side money as you split the rent.
Buying a house can yield big money. I paid 147k in 1992 my home is worth 660k now.
Kind of beats inflation But we are talking a 30.5 year time frame.
BTW a 1992 dollar is worth 1.00/2.12
or it grew 2.12 x 1
my 147k house should have become 311k
So I beat inflation pretty well.
At least on paper.
add in property tax 30 x 5k = 150k
heat is more say 360 x 100 = 36k
improvements say 100k = 100k
total 286k
286k + 311k = 597k. and my house is worth about 660k
so I am around 63k ahead. over a 30 year time frame.
what other gains did I have. I live in a low crime neighborhood.
town of 70k in 30 years only 5 murders
So 1 every 6 years.
I lived in New York City about 700 murders a year on average
fast math is
murder rate in small town 419,991 to 1
murder rate in NYC is 11,428 to 1
So I feel my purchase is worth it. Safety alone helps the move being worth it.
Renting only works if it lets you save on the side to have enough to buy a house.
A single couple like you ( the op ) Should be able to save side money as you split the rent.
Buying a house can yield big money. I paid 147k in 1992 my home is worth 660k now.
Kind of beats inflation But we are talking a 30.5 year time frame.
BTW a 1992 dollar is worth 1.00/2.12
or it grew 2.12 x 1
my 147k house should have become 311k
So I beat inflation pretty well.
At least on paper.
add in property tax 30 x 5k = 150k
heat is more say 360 x 100 = 36k
improvements say 100k = 100k
total 286k
286k + 311k = 597k. and my house is worth about 660k
so I am around 63k ahead. over a 30 year time frame.
what other gains did I have. I live in a low crime neighborhood.
town of 70k in 30 years only 5 murders
So 1 every 6 years.
I lived in New York City about 700 murders a year on average
fast math is
murder rate in small town 419,991 to 1
murder rate in NYC is 11,428 to 1
So I feel my purchase is worth it. Safety alone helps the move being worth it.
It probably depends on how strong the rental market is wherever you're buying or renting. If you can get somewhere good to buy, you might be able to buy it and rent it out and afford your own apartment too (or live in part of the property and rent out the other part).
There's another factor of how much it costs to buy and rent wherever you are. If it €400 to rent or €500 to mortgage, it'll be less worth it than if it was €300 mortgage. If you break up, there's different types of mortgage contracts you can sign depending on how things should be split (ie if it's equal or proportional to the investment each of you has made). You'll have to pay high legal fees though often if you don't agree with a solicitor on how much each of you should be paid (and even then the solicitor will probably take a big cut too).
There's another factor of how much it costs to buy and rent wherever you are. If it €400 to rent or €500 to mortgage, it'll be less worth it than if it was €300 mortgage. If you break up, there's different types of mortgage contracts you can sign depending on how things should be split (ie if it's equal or proportional to the investment each of you has made). You'll have to pay high legal fees though often if you don't agree with a solicitor on how much each of you should be paid (and even then the solicitor will probably take a big cut too).
I think there are variables factoring into the viability of home property rental markets.
We know that the value of real estate exhibits consistent growth on a historical timeline. How this contrasts with wage growth determines viability of rentals. Population growth factors in as a factor of demand growth. Real estate construction represents supply. In terms of supply versus demand, population growth is rising at a faster rate than development and construction of living space, resulting in scarcity.
Rental markets were more viable in past decades when the proportion of wages to rental costs were better proportioned. Population growth was also in better proportion to home construction for living space to not be so much of a scarce and overpriced commodity.
In some respects, housing and real estate markets are becoming deflationary in nature. In terms of supply (home development and construction) not maintaining pace with demand.
We know that the value of real estate exhibits consistent growth on a historical timeline. How this contrasts with wage growth determines viability of rentals. Population growth factors in as a factor of demand growth. Real estate construction represents supply. In terms of supply versus demand, population growth is rising at a faster rate than development and construction of living space, resulting in scarcity.
Rental markets were more viable in past decades when the proportion of wages to rental costs were better proportioned. Population growth was also in better proportion to home construction for living space to not be so much of a scarce and overpriced commodity.
In some respects, housing and real estate markets are becoming deflationary in nature. In terms of supply (home development and construction) not maintaining pace with demand.
I don't understand why rent is a waste of money. If you do not own a private home, you pay the accommodation price on a monthly basis, at least until you own a home.
It is because of how expensive the rent is when compared to loans. This assumption is unfortunately flawed because not all of us can get a loan. You need a high paying, stable job to get a decent loan.
That said, most of us have families and I know a number of people who received help from their families when they got married and could afford their first apartment.
This is a problem with no real solution. If you earn 2k a month and and your rent is 500 you'll never be able to afford your own place, unless you inherit it or get a better job.
I was fortunate enough to have my own place in my 20s, but I paid for it in a different way because my parents split up and didn't know how to split it so they left it to me.
I don't understand why rent is a waste of money. If you do not own a private home, you pay the accommodation price on a monthly basis, at least until you own a home.
Not all would really be to those who rented ending up on having their own house because there are people who pays rent for their entire life.Why? because they dont have the chance on building oneits because their earning isnt really that sufficient enough for them to step aside some amounts for them to save up or simply their income isnt really that enough.This is why its really that situational
if we do speak about this matter on which not all people does have the power or ability to save up and does have opportunity to take up some loan or been approved with those
housing or whatsoever correlated to this.
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.
We have something similar to that in Croatia going on for years, and unfortunately all that achieved is that real estate prices went up so in the end the only ones who benefited from it were people selling apartments/houses while government keeps losing money. All the experts warned them not to meddle into market as they will just pump the price, and of course they didn't listen as they saw it as another way to buy votes with someone else's (ours) money.Buying your own place is certainly a risk and it depends on the number of factors like what kind of job you have/how easy is to find another one, where do you live etc. For me personally it is worth a risk and basically all people I know are choosing that option rather than giving someone else your money for 30 years and not owning it in the end. I don't know how big are pensions in Greece, but in Croatia 95% of pensioners are not able to afford the rent so that's another reason to get your own place while you can.
Renting versus Buying is an age old "debate" but which you should do lies somewhere in between the two. Sometimes renting makes more sense and sometimes buying makes more sense. It just entirely depends on where you live, as in what country and what city. There's some good articles out there online that talk about what to look for when you're deciding on renting versus buying. Here's a pretty good article that shows some key reasons why renting might be the best bet for some- https://www.investopedia.com/financial-edge/1112/reasons-renting-is-better-than-buying.aspx
I don't understand why rent is a waste of money. If you do not own a private home, you pay the accommodation price on a monthly basis, at least until you own a home. The rent is also for those who are used to move to work from a city to another is freedom of movement.
The matter cannot be discussed without taking into account that today buying an apartment in any country has become a difficult mission. If you do not inherit it, you are lucky to have a home.
Renting and owning each have their advantages and disadvantages, the choice is always the result of circumstances.
The matter cannot be discussed without taking into account that today buying an apartment in any country has become a difficult mission. If you do not inherit it, you are lucky to have a home.
Renting and owning each have their advantages and disadvantages, the choice is always the result of circumstances.
In the country where I live in the past, the government used to have a low-cost housing scheme for public servants. They are allocated a 3 or 2-bedroom apartment and they start to pay-off monthly. That is some percentage of their monthly income will be deducted. After a couple of years when they have completed the payment, the deduction stops. Nowadays, things are so tough that even the government cannot afford to do that anymore. When citizens calculate the cost to buy a plot of land, build materials and paying for labour, they resort to renting. Is it a waste of money? Not really if you are saving towards building or buying an apartment.
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.
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.
I don't see those as problems, and even if considered such you can easily go over it
- if you apply for a loan you simply write down both you and your girlfriend as partners, and you split the future property 50/50 or 25/75 how you want via a simple contract, every bank here accepts mortgages from two individuals that are not married but are copayers
- the same problem with rent, I can rent a flat in the city center but it will cost me 3 times more, the same if for the price of the mortgages, there is not much difference between them unless there is something really specific in that area, I find it unbelievable for a situation where apartment that are 3x different in rent have the same value in the overall price.
- there is no guarantee that in 15 you could afford rent either.
However, my analysis is valid for my country.
The country with the largest percentage of homeownership in the world?
I guess nobody listens to the cons there, your first wage comes with a mandatory mortgage or how do things work there?
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.
When we do talk about the future then it is something that cant really be known due to no one really knows on what would happen ahead and this is something makes it even more harder.I do love the ideaor thinking on having advanced and its true that we cant really be sure that we would really be lasting up for so long into that person you are living with or the one you do love.This is a matter of risk
taking because if you are really that eager to have your own house or apartment then it does really need up some ample time to make out that consideration and the best thing to mind off
is that you should really obliged yourself on paying it up no matter what because it would be a long term payment duration which something that you should prepare.
The ideal is to acquire a house, but sometimes we have no choice besides renting. Like myself, I've been always against renting, but now I had to go for it, paying 135$ monthly in a suite, in order to be able to seek for a higher educational level in another city. I concluded we can't be too strict on our views in a way it's going to paralyze us in life. Life is constant movement, and if we have to "waste money" renting a house or apartment to advance in life and persue goals, that we do it without regrets!
Also, if you live somewhere precarious and non-promising because a temporary job, better that you just rent, as the investment there will be lost, since these areas don't make your property gain value on long term.
Also, if you live somewhere precarious and non-promising because a temporary job, better that you just rent, as the investment there will be lost, since these areas don't make your property gain value on long term.
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