Topic: Own a house or rent one? Quick survey! (Read 639 times)

Many thanks for all your replies. Even though many replies are not straightforward enough but I have got 5 pages of replies to analyze. Thanks for sharing your suggestions as well.

I am locking the thread now to prevent any more replies because I don't want this thread to become a spammer's heaven. Thanks again!

Owning or renting

I prefer renting than doing a house loan for several reasons:

1) Renting gives me the capability to leave anytime I want, whenever a situation arrives for me to switch place. I don't consider myself to be able to stay at one place for a very long time, but this might change when a situation occur

2) House loans is crappy in terms of expenses. Especially when I'm busy, working with those expense paper is a real shit in my time, plus it will make my day sure miserable

3) owning a house is only in for me, when I have my own family. and I'm rich

4) I don't know if its for everyone, but I really like living in a condominium/apartments for I don't need to maintain the lawn or anything specific myself.

Its not easy to take a 10 year housing loan, Anything can happen within those 10 years and in the event you lose your job, you will lose your house too. Its better to rent for now and save up for a future house since its all the same as getting a mortgage for 10 years.

If you can pay a mortgage loan to buy a house, I think that will be good for you, even if you need to do that for more than 10 years because you will have your own house after that years. On the other hand, maybe rent a house will not too expensive for you, but if you can allocate your money to buy a house, you can have a house without paying the fee of rent a house anymore. But if you have another plan by renting a house, I hope you can thinking more to find which will be good for you and calculate your money before you decide.

I also understand your thoughts, where I feel it too, when you are married, of course the house becomes a basic need that must exist, especially if we already have children. Owning a house is like owning a country, where we can feel the freedom to establish our own rules in our homes, because I am the head of the family

I understand that you don't want to live a complicated life just because of a long term loan when you can live simply just by renting your home.

However, for a family man, our concept might be different from yours. We dream to have our own house at the end of the day so we'll no longer rent for the rest of our lives. If i can have a stable job and a well paid income, then why not? I'll take the risk of taking that mortgage loanvevenbif it takes long years as long as my own family will also benefit from it in the future.

Seem a game for rich people who are in the government position. Living a place for a long period of time and then register it as my own. That's easy to do if you have the money. Different countries have their own laws.

Money is always the problem when it comes to having a comfortable place. The only option for us if we don't have money is to live on the streets. The religious faction where you belong won't even bother to look at you when you sleep beside their church.

In India, it is said that if a family manages to live for >11 years at a single place (i.e.; home) on rent, then they can claim such property based on some provisions made available to them (if there's no contract like they'll need to leave that place after 11 months or whatever determined in the contract).

However, someone who is a die-hard traveller may choose the best option of renting many different homes every month by visiting a new place every time. That's for a traveller or the one who is not responsible to fulfil any family needs (if he/she doesn't have one). But someone who's got responsibilities should rather go to have his own house IF his job is not related to changing places.

Nowadays, I'm hearing of heavy deposits based flats available in some parts of India which saves the person a lot rather that going for rent. Don't have much better knowledge about it as I never went for such types and currently have an own place.

I chose the second option. I choose to rent a house, while saving to buy or build my dream home. The reason is simple, I live according to my ability, because I can't afford to buy a house, so I won't force myself to take credit. After all, with a home loan, the price will definitely be much more expensive than the initial price.

it's about the principle, there are some people who choose credit, it's the right of each.
I just ordered to always have self control, don't follow a lifestyle that we haven't been able to achieve.

My decision will greatly depend from my source of income. Having to take a mortgage loan that will take 20-25 years let's say is very hard for someone who has only been making minimum wage income. But if you have a stable job with high paying salary then it's really a wise decision to have your own home as long as you can live along with your family.

Honestly, i prefer to take a mortgage loan so i can have a home of my own because renting for such long years would mean a total waste of your money and yet in the end the house would never be yours. But it all depends in your source of living if you can sustain it together with those basic needs of your family that should always come first.

I'm not in that demographic, but hell, that never stopped me from replying to a post before and it ain't gonna stop me now. 

Hopefully you're just using 100 USD/month because it's a nice, round number and not what you make or think most members here make if they work a real-life job.  Whatever the case, I'll get to the point of my response: I fully realize that owning a home is as much an investment as it is a place to live, and I respect that.  Personally, however, I would never buy a house because a house is an investment that you constantly have to pump money into, and you've got property taxes, taxes on everything you buy for the home, homeowner's insurance, usually higher utility bills, and all sorts of expenses--in addition to the need to do everything from mow the lawn to shingling the roof when it needs shingling.  On top of all that, you can't just up and move easily like you can when you rent.  If, for some reason, your neighborhood goes to shit you're either stuck there or you have to go through the hassle of selling your home.

If I wanted to invest in real estate, I'd buy REIT stocks.  They provide exposure to the market as well as providing excellent income through dividends (usually monthly, too).  It is an absolute pain in the ass to own a home, which I've learned from people who own homes.  Yeah, paying rent doesn't give you any equity in the domicile in which you're living, but I'm more than OK with that.  I'd prefer to have a landlord responsible for shoveling snow and in general taking care of the property where I live.  If I've got to pay a premium for that or miss out on massive gains in the real estate market, so be it.

Not only do I believe all of what I've written above in theory, I've walked the walk so to speak and have never owned property.  Never will.

There is nothing more important or of the more advantage than actually owning a thing. When its yours, its yours. All you need to do is, get the perfect structure and in the best location for which you feel you are the more comfortable. Yes, you might be loosing some cash that is significant to some extent but then, you suffer this loses for a while after which, it goes away and your now free with a new property. A property you could sell off and get another one If you please or even renovate to your taste as tome changes.

Renting on the other hand, it stills your freedom and keeps you in thoughts for the rest of your life because, you've got depth to pay. Any day you don't meet up with your rent bills, your most likely to move out. It goes on and on all through your life time until you actually decide to own a house. So, 2hats the point in choosing rentals when you can afford to actually own a house? It just doesn't add up. Should owning be the end point and you can actually afford it at the moment then, kick start the process. The earlier, the better.

Own one, definitely own one. Why? Simply because when you are paying rent, you are making someone else rich, they bought it and now they are not using it so they are basically making free money from your own hard work. If I own my own house and then pay mortgage to bank that would mean that I would be capable of owning something of my own and working towards making myself richer and not someone else's.

Same goes for everything in life, if my hard work makes me richer than it is fine, if my hardwork makes someone else richer then I am not planning on doing that for too long if I can avoid that. Even working is the same, I used to work for a company, then I quit because they were treating us horribly and paying us very little, now I am a freelancer and yes I do work for other people still but I pick who I work for, everyone I work with are amazingly great people, anyone who treats me bad? I just quit.

I actually prefer to rent, not with loan though.
I doubt I could live in a house I built with loan if the house isn't earning me more income.
Besides it's quite risky to build houses that can't easily be moved around to other locations in time of uncertainty.
I never really liked large homes for me and family. Better to build companies where people can be employed.

As long as you have a contract, you're covered for that time period at least. However, it did happen to me once, and was a tedious process. It can suck if you have a terrible landlord, mine was, and had severe issues. The A/C was never worked properly while the boiler exploded due to it being completely covered in rust.

It's a great feeling to have your own house, however, if you're lucky enough and rent a proper house with a decent landlord, you should be good for quite a few years.

The truth is this entirely depends on what part of the world or what part of your country you live in.  Here in the United States it makes more economical sense to rent vs buy and vice versa, some states/cities it makes more sense to own.  If the city/state you live in makes more sense to rent, than investing the 25 dollar difference that you are keeping in your pocket vs putting towards your mortgage can go towards your retirement/investing etc.  So the answer is it entirely depends on ones specific location.

$400 a month, $100 on the mortgage then bills, food, etc.
I once experienced renting and the problem is, it's not yours. There will always be a scary part where the owner may have some reasons to take you out.
A family member wants it, a friend or just someone more important than you. I don't like that to happen especially when you have kids and got a lot of stuff to carry to a new house.

When you have your own house, you get old you still have a roof to settle and the kids can buy their own once they are old enough.
Security. You can do anything with your own house while with rent, you will need the permission of the owner.

Evaluate the home you plan to buy such as its location to your workplace, neighborhood characteristics in the area, and future property value. Answering all of the above will tell you if you should buy a house with your $40 monthly income or not?
Another thing is that real estate and each person's salary always increase over time, so if you buy a home, you will have the advantage of paying off your debt faster over time. You eventually get the house and your home value will also increase.
If you choose to rent a house for 15$, you have a good chance of finding a place that suits you best to stay. Next, you will also have to accumulate money enough to buy a house or choose an installment method. So consider carefully so as not to miss the opportunity.

So owning a house or renting, this story comes to mind: https://www.businessinsider.com/blackrock-wall-street-investors-buy-homes-neighborhoods-single-family-rental-2021-6

This was not really a scandal, but it did make rounds last week because the story is that a wall st. firm is buying up homes at a high mark, paying out like 1.2x or 1.5x the home's value. Now, some have speculated that a housing bubble was beginning to form with people dumping their investments, pulling out of liquid currency and putting it into real estate, but the idea here seems to be a a giant firm buying up tons of homes in a local community so that it can force people to rent.

Two things to consider: Renting obviously is a bad economic investment, paying a mortage is better in the long run, but when a firm worth billions can outcompete the average home buyer, driving up prices, does that force you to rent?

Another thing, say you are forced to rent because of out of reach prices, does that mean Blackrock now has local monopolies in communities where they bought up all the real estate?

Owning a house definitely, the land is yours and it appreciates over time and you don't have to worry about monthly rent since your only worry is the bills in your house plus if your land is big enough, you might be able to rent the extra space to other people and have your own passive income.

That's a tough one. I'd prefer it if I had a house, you have the freedom to perform any changes you wish, renovate it, build a pool in the backyard and so on, while you are responsible for any damages made (My landlord still hasn't fixed some faulty plumbing where I live).

However, it's an expensive procedure, I mean, 40% of your income will directly go to loan payments for approximately 25 years. My main concern is that a lot can change during these 25 years, on top of the interest, which will add on top of the purchase price. Unless we're talking about purchasing a small apartment, which wouldn't cost a fortune.

It also depends on your age, I wouldn't be interested in buying a house at 25, I'd prefer renting.

I believe most of the people here would prefer renting a house just like any other influencer who talk in youtube. They even prove it by giving advantages however, for me personally it is quite good to have a decent and worry free house. Worry free of monthly dues and anytime you could possibly be cast away.

Personally, I will opt to buy a house rather than rent provided that my job location is fixed. I really think that having your own space is a nice investment especially because real estates' price go higher as year passes by. However, it really depends on your situation and preferences as well.

If your job requires frequent relocation, renting is the best option for you. It wouldn't be wise for you to buy a house and lot if your work demands you to go from one place to another. I just can't see the point of having one then eventually you'll just abandon it. You can't savor your hard-earned money with that case unless you will let other people rent it.

But if your financial status and work nature can handle having a house construction, it would be best to go get a house instead. It will save you a lot of money in the long run. In addition, you'll have no problem about landlords and co-tenants. You will have your peace of mind and privacy at best compared when renting. Another thing is if you plan to have your own family in the future, it's better to have your own house for your kids welfare.

I think that a lot depends on how profitable the loan you specified in your country is. If the terms of the loan are acceptable, then I would choose a loan from these two options. Let me explain why: when you make a loan and rent a house, you still pay your money, although the rent is four times cheaper. However, by paying off the loan, you are actually acquiring the house as your own property. And no matter how much you pay the rent, the house is still not yours. There is also a third option: pay rent and collect money for the house. Everything here needs to be calculated, as well as other circumstances should be taken into account - reliability and prospects of work, family and other circumstances.

Depends on the location. Here in the Philippines, With a $100, you won't be able to pay for you own house in your lifetime, much less even budget that properly if you have a family (the average salary in the Philippines is $300 btw), but you can surely survive on your own as long as you budget it properly. It would be better to rent and invest the remaining money somewhere else where it will grow.

Let's say you took that mortgage for 40$ a month, you're only left with $60. You need to budget that $60 for your food and other necessities like water, electricity, gas, travel cost if you work somewhere, etc., that will only give you little money for savings and other emergency funds that you might need. It's not like a house is a necessary thing to have. With your salary, it'll only be a liability than an asset because what would happen if something bad happen and you don't have the money for that? it's going to be a disaster. Also, take note of the maintenance cost for that.

If you rent, then you would be given more room to work with your money. Let's say you're left with $25 with everything paid. That's $25 of money for savings account, emergency funds, and even investment funds.

As for my experience, it's pretty safe renting because of the neighbors. They act as some sort of security for my room (besides my hidden security) and I am given enough room to put all my stuff and small enough room for maintenance.

I have a different opinion when compared to most of the posters here. At least where I reside, it actually makes sense to rent a house. Because as per my calculations, the annual rent is around 1/30th of the amount that is required to purchase a house. Obviously owning a house is everyone's dream, but here it makes sense to delay that decision by a few years. My plan is to save a certain amount for next 10-15 years, so that I could purchase a house mostly with down-payment. In places where the rent is quite high, it won't work though.

Buying a house is the ultimate goal and you can't rent forever, you might be right about the expenses these days but it will only get more expensive as time goes on since real estate is an appreciating asset.

Given the scenario, based on my current situation I prefer and I have to rent an apartment rather than buying one because situations are getting worse and with increased expense due to rise of cost of the essential products and needs it is important to save as well. I am focusing a little bit more on saving nowadays due to the pandemic which is extremely uncertain.
I would love to buy or build a house so that the increasing rental cost does not affects me for lifelong.

From personal experience - up to 40 years old I changed housing. In the beginning I rented - it was more profitable, and there was no connection to the place of residence. During this time, he changed 5 apartments. After the children grew up, the business is working steadily - I bought a house in the suburbs, an apartment. Recently invested in tourist real estate in the near abroad.
It makes no sense in the early stages of formation to "tie" yourself with real estate and geographically and financially. Therefore, the first stage is rent, the second is the purchase of housing, the purchase scheme depends on the financial condition and capabilities. It is difficult to say more precisely - the conditions in different countries are very different.

Things like this have been a debate between me and my husband, whether we must rent a house or pay in installments...

but after going through debates and consultations, we decided to repay the house. renting a house sounds cheap and comfortable at first but the house rent goes up every year while the house is still owned by other people.

Installing a house sounds heavy and scary, but in the next few decades, you can earn big profits from the increase in the price of your property.

You're certainly right about it mate I mean when we were going to compare the life of the old ones to ours today they really said that the price of this item is just only like this, like that and today it is very expensive. So in my own opinion since I am just a minimum wage earner and does not have enough savings to put a roof over my head guaranteed mind this time I'll go to live in rental house. I mean I'd still wanted to have my own house but for now investments or assets is on top of my priorities today.

Real estate prices can increase at any time so buying a home is also a way to invest for the future. You must own a house, a place to live for the whole family if getting married happens to you.
Moving is also a way to satisfy yourself, but the fixed rental cost of 15% of total income is quite high. It doesn't provide the same long-term benefits as buying a house.

I would choose to pay 40% of my income to own a home in the long term. It can also be considered a good investment.
Choosing to rent a house for $ 15 monthly and thinking about going around can leave them empty-handed in the future. Moving doesn't bring us much value. We must perceive the world. Having a home we can settle down to get more jobs and focus on work. The more years we have experience in an industry, the higher our income potential and the sooner the house will be paid off.

This is alway depends on situations and our personal likes since not everyone have the same taste of comfort since if OP is bachelor then he can just rent and just save his remaining for something more beneficial. Its so hassle to build a permanent home since its really hard to leave it without person attending especially if we are going at work while if we rent some condo or apartment we can assure that we are safe since there are so many people around and theirs a guard that can watch our belongings.

That is based on the situation. for me, 40% is a huge takeoff from the monthly salary.
I would rather rent a house while building my asset; you can also do a lot from that 25% extra.

First off, lets get something straight. Renting is not a waste of money. Sure, giving your money to the landlord may mean you're not investing in homeownership. but your paying to live somewhere! And as long as your paying to live, your money is being well spent. Though renting as a way of life is not something we recommend, there are a few situations in which renting is the better option.

I am 64 still tech savvy and have experience :

This question is not really answerable the way you worded it.

If you said

100,000 Usd salary every month based on current usd value

and

40000 usd for the home
or
15000 usd for renting I could answer it

using 100usd 40usd and 15usd give me no sense of scale  as to the amount of living I can do with my remaining amount

ie
own

100-40 = 60 usd at today prices I am broke and would lose the house.

100k-40k=60k at today prices I am loaded and not lose the house have tons  of left over money

or
rent
100-15 = 85 usd at todays prices  I am broke in a few days and would starve
100k-15k = 85k at todays prices I am  whaling .



So without context of the date and the rest of the expenses I can not give a good answer.

I can do this based on current prices in usa

1)  100 usd both ways I am broke with way
2 ) 1000 usd I would rent I could survive owning would be a fail
3)  I think 5000 or less I would rent
4)  5-10k gray
5)  10000 usd I would buy the house but it is close call to rent.
6)  10-15k gray
7)  15k or more buy for sure
8.) 100000 usd I would buy the house easy call for me.

In all cases nice home and or nice apartment.

I am older I have rented and I now own.
Both are okay.

But going broke and losing your home is worse than being evicted from an apartment.


There is a zone of if in the range of 5-15k a month income at today usa prices.

Maybe 7-15k is better. 

I think the zone depends where you live say NYC or SF or  LA vs a small out of the way place.

Sounds like you are administering a questionnaire on us. However, your question cuts along the line of managerial decision. I, for one, would go for getting a house on that mortgage level you mentioned on one condition — On the condition that my wife works or is in business and that she supports the family. Otherwise, spending 40% of one's income on mortgage is too much and unreasonable. Doing that will be very difficult for one to meet up with other financial commitments. It's good to own a house but don't do it at the detriment of your peace of mind so you don't push your health to jeopardy. If you aren't getting extra cash apart from your monthly salary, don't buy a house. Just settle for a rented apartment.

My answer is that I would buy the house if it is the house that I have dreamed of for all my life. If my salary is compromised to cover my daily needs, I could find other ways to earn extra money to support expenses. But I would have the security of having my own home.

I have seen this example throughout my life but unfortunately in the country where I live the facilities to acquire a house are remote. You have to save money to buy it or build it little by little. It is more common for people to rent their houses because they earn a very low income.

Not just a life savings but also an investment.

Aside from selling it, the common investment and passive income that you can do is to rent it out. If you've got the house in a good location, you'll have it rent and you'll surely have the monthly income coming to you.

Without any hassle and most of the time it won't be vacant because of the factor of being in a good location.

That is too expensive on your part, your earning is even not enough for your basic needs and yet you are planning to do a mortgage loan for a house. I would say the best option is just to rent or live in your car if you have one.

If my salary is that low, I would just minimize my expenses in order to save, not because I want to buy a house in the future out of that saving but I would like to save for the business capital purposes, with business though risky, you will be able to realize your dream if you succeed and you can even earn that 100 USD in a daily basis.

Let us not make ourselves to stay at the rat race, we will just be a modern slave.

Taking into account the real state market is inflated all over the world and that we are in a bitcoin forum it makes more sense to rent and use the rest of the money that you could use to pay for a mortgage to invest in bitcoin, that way over the years and as the price of bitcoin increases you will be able to pay the house with your bitcoin way faster than you would do paying it with fiat, and the best part is that you will never be indebted in the process and your money will be working for you and not against you as it does with a loan.

I am a bit of a traditionalist when it comes to property... because I was taught from a young age that it is of utmost importance that you own the roof over your head. My Dad has always said, "Why make someone else rich by paying him rental, if you can use that to pay for your own roof over your head"?

The problem is that times have changed and the younger generation are faced with high unemployment and very high property prices. The Banks does not give 100% guarantees anymore, so most people have to fork out huge deposits and they simply do not have that. (They also do not have assets to put up for guarantee, so they have to take out loans to pay the deposit too)

The rental scene is very competitive and if you are clever, you can stay in some fancy house that you would never have been able to buy for yourself and you can quickly move to a new place, if the rent goes up too much. (That is to say, if you are not contractually bound in a long-term rental agreement)  

I will rather live on rent.

The reason is that I am paying 15% on my rent as opposed to 40% from my salary and that means a lot. I would struggle to maintain daily needs with 60% but if I am getting 85% it would be sufficient. If my salary was 200 or maybe then maybe my decision would have been different but given the salary is only 100 USD, I will go with the rent option.

By the way, really good survey and I am enjoying reading these comments. Everyone has their own opinion so I understand if some people would pick the other option.

Although you could practically speculate on the house by buying the house at the low price to flip it a few years later, and make a lot of profit of the pump and dump. This is what many investors did several years ago, however it’s more sophisticated than you can think of, and it’s not possible to be reproduced again today, it’s harder than you can even imagine it’s a criminal planning that is going on.

Those investors abuse the psychology of those of you who think like “need to buy house no matter what, need to marry virgin girls at all cost”, by manipulating them and shilling as if the house is the highly priced virgin girls that is very well worth it, that you can die for, you should pay an arm and a leg to get a chance to have a wonderful night with the virgin girls and your life is finally completed because you have achieved the ultimate goal of a successful guy.

Bullshit, this is the idiots that I enjoy manipulating, making them pay for my fast car fast house and fast women, and there is countless of dumbass that would still fall for my “very obvious get rich quick ponzi” that would make them remorse of their life decision.

you think you could shame married guy who married to a woman and later get 51% rate of divorce? I would shame you for married to the overpriced house and get foreclosed later, same as divorce with your house. What do you gain from your over exaggerated virgin marriage is far greater than what you gain from buying a house, at least your ex-wife can’t sue you to bankrupt, but your house and banker can make your life worse than beyond hell and bankruptcy even ended up in jail for financial crime.

Yes owning a house is a better option truly because it looks like a life savings that you have made. It may not be easy in the struggle to but at long run benecial. Having a percentage cut in salary and forfeiting some temporary pleasure can be stressful. Going for transfers from work should not be any reason not to acquire your own building because you can put it out on sale and regain your capital investment. This is the practice in my locality.

With $100 you can neither pay the rent not pay out the mortgage, so it's hard to work with these numbers. Is the remaining $60 enough to get proper food, go on a vacation in summer and buy something nice once in a while? To me, it's very important whether a normal-quality life can be sustained while paying the mortgage. It's also very important to know how many years it'll take to buy a house under these circumstances. I would normally rent under these conditions, but I do want to buy a flat eventually, and it'll probably be via mortgage because otherwise I won't be able to afford it. I would take the mortgage deal if all the conditions below are met:
1. If I lose this $100 job, I'm confident that I'll find a different $100 job within a month.
2. The mortgage payments can be paid in no longer than 5 years with the current salary.
3. Paying $40 for the mortgage, I can sustain a decent living with the rest of the money, buying good food, being able to go to a restaurant on special occasions and save up a bit for one-week low-budget vacations with a loved one.
If even one of the things above isn't possible, I'll choose to rent and aim at finding a more high-paying job before I start with the mortgage, so that those conditions can be met.
By the way, the ratio you're giving with $15 for rent and $40 for mortgage is very realistic for my third-world country. But finance-wise, I'm currently renting, and it takes around 50% of my monthly budget, so mortgage is something I can't afford right now.
Oh, and I wouldn't want to buy a house anyway, I'm only considering a flat. Having tons of space is wasteful and unnecessary even for a family.

If it's already taking up 40% of my whole income, i'd prefer to rent instead, at least until my income is higher and i'll be able to afford it without having to spend almost half of my income. If 40% is already for paying loan, then i don't think i will be able to do saving. Especially if it's going to be such a long term loan, i'm not gonna spend my life living tightly and paying loan till you know when. Not having a house sure is hard, but as long as i don't have a family yet, i think it's not an issue.

I believe there is both a merit to what saiyan says but also you are right as well. In some places the market price goes up for houses all because it is manipulated, there are usually no reason for houses to be that expensive, yet it does still become very expensive, in places like California and Toronto where houses worth so much so needlessly are all because of manipulation, not because of any valid reason, but there are places which are very very crowded and those places make sense, like Hong Kong and Japan prices are high but that makes sense because of lack of available plot to build a house.

So you guys are both right, in some places that is because of manipulation and in some places it is because there is a good amount of people with lack of buildings to live in. I would say that real estate is still a good investment no matter which one you are in.

Buying a house is an important thing, you need to have a stable financial position to own and pay for the house. Depending on your country, you may have to pay annual taxes on your home. Renting a house has the advantage that you will easily move to the place you want, such as near work.
Whether owning a home or renting a home depends on the potential of real estate values in each country. Buying a house is also an investment, you can borrow money from a bank to buy a house. You can also resell the house you bought for a profit.
If you choose to rent a house, you can save some money, but house prices increase over time, the savings become meaningless.

I will try to buy a house on loan
I often have bad experiences when renting and that doesn't motivate me to work harder

if I have a home loan then I will definitely have the enthusiasm to work harder to pay off my debt
renting a house is a complete waste of money and time

Let's assume the mortgage period is 10 years, and the loan instalment payment will be constant throughout this year since I never heard that the loan term amount increased every year due to inflation or any economic causes where as the rent is 15 USD per month but in the next 2 years it will be increased to $20 and in the next 3 years it will increase to 30-40 so in that case having a house on a loan is better as an investment because we will own the house after the loan period is completed while we will be paying the increased rent amount and maintenance fee to the owner still we never get any asset.

We also can do another thing, just take the home in loan and rent it to someone for $30 and you live in $15 house means you are actually paying $15 to the loan which is same as your rent amount.

If I live alone then I choose to buy a house with a loan. Because I will be looking for a side job to increase my income. But if I were married, my expenses would be much higher and 40% of the total income for the house would likely starve my family to death so renting and saving until there was enough money to buy a house in the countryside was cheaper for sure.

The best way is to own a house than having a rent one. Why? Simply because real estate was a good investment because as time passes by, the price of land is going higher and higher and it is a good investment because a house is really worth to establish and start a family and that house may use anytime and can be sold anytime with a double or even a triple price of the initial buy of it.

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If there's a continued increase of population then the real estate will continuously grow too because it land is also a resource that is also consumed by people. I don't necessarily agree that renting is the best because if you can find a way to own a house, I am pretty sure that you will be able to buy one but that depends though, you might want to weigh the pros and cons of both and see which one seems comfortable for you.

I had no idea of why many people insist on getting your own house no matter what’s the cost, they’re behaving like those nerds who think they must only marry to virgin no matter what, they would pay one million dollar as long as they can marry the virgin girl and get the baby, it’s by no mean is a very obvious very poor financial sense. Yes you can have your own house which is better than rent one which is what most agree, marrying to virgin girl is, yes it’s cleaner, yes it’s guarantee free of disease, yes it’s much better than marry to those left over non virgin girl prozzies, yes it’s a wall of text of all pros and no cons. Seriously there is really no point to buy house anymore when it’s more expensive than the virgin girls could offer, I know there is still bunch of extremely dumb people who would still blindly follow the hype and get the house at all cost, I enjoy manipulate this type of idiot who just couldn’t learn and they deserve to be stay poor their entire life. Very offensive comments, I know but please think wisely!

Based on the socio economic situation in my country, to own a house is what most people want and are working towards. Owning a house here, offsets the burden of annual or biannual rentage for a property which is sometimes very ridiculously high depending on the kind of life and neighbors that you want.  Rentage here is based on security, accessibility, proximity to landmarks and some other sometimes very ridiculous reasons.

Although the idea of being free to just move anytime one wishes in a rented apartment seems appealing, it is also possible to own multiple properties at different locations of your choosing to keep it interesting as well.

From my perspective, it is better to have your own real estate for life than to pay rent for the rest of your life and in the end leave nothing to your descendants. Of course, not everyone can afford to buy a house or an apartment, especially if they have a small monthly income and if their bank loans are unfavorable.

I think that people's attitude towards this issue also depends on the country they live in, because some people have a hard time deciding to leave their place of birth, while others are constantly looking for new opportunities and have no problem living in several different locations every year. Therefore, for some, owning a house is not an option at all, because I personally know some people who inherited their parents' houses and immediately sold them and still live in rented houses or apartments.

There are so many things need to consider before having a good decision about this since its really hard to decide on which is best decision for us.

But if you want to have peace of mind without worrying the monthly rent and you can afford to buy a house then do it but you should seek a house which is near to your work since if you choose a far location you are totally wasting money for gas fee if you have a car or fare if you are communiting as well the hassle to travel since the traffic is so stressful.

If you are still saving and you are still a bachelor better save your money first and rent temporarily try to used your money to create a business then if your business succeed then by that you can start to choose the best location of your home, I know its expensive to buy a house and lot near your workplace but since you already create a successful business for sure you can afford it in good times come.

It really depends on your current condition. but if I had both options, and I could buy a house, then I would. Having a house and a place to shelter can make you feel calmer, as well as clearer thinking, both in everyday life and decision making while we work. the psychological value when we have a house and only "stay" is very different

If there's a continued increase of population then the real estate will continuously grow too because it land is also a resource that is also consumed by people. I don't necessarily agree that renting is the best because if you can find a way to own a house, I am pretty sure that you will be able to buy one but that depends though, you might want to weigh the pros and cons of both and see which one seems comfortable for you.

     The decision about this depends entirely on the salary grade and type of work. Now salary grade obviously influences the decisions on a person greatly if a person has too much bills to pay and does not have the luxury of reaching the requirements of a loan, then that person has no choice but to rent. About the type of work, a person decides depending on the things that his job requires out of him because there are jobs that gets you assigned on many places. Thus, makes renting more beneficial.

It is never easy to own a house, the easy is to rent a house, the house price is increasing to force you into renting house, of course there is very slim chance of house price going south and make it affordable again, because the ponzi couldn’t be stopped, it’s too heavily manipulated to create imaginary market growth.

It usually depend on your current situation. If you have the expense of buying your own house, it would be much better than renting one while if you do not have yet, you should settle on renting because it would go down like you are throwing your money away. If you can find a rent to own house, it would be much better no matter how long it will take because when the time comes that your payment ends, it will all be worth it unlike on just simply renting. In any other way, buying your own house is much better compared to renting so if I were to give an advice to someone, I would suggest to him that he should just invest on a house while he still can't buy one.

We'll if you say I'd spend 40% of my salary to pay for a loan to own a house, then why not?
Especially when you got stable job. Infact, 40% deduction of my salary isn't too much when you have a working wife like me.
Come to think of it, you're paying $15 for how many years and gets absolutely nothing in the next 20-30 years. If you're not planning to build your own family then renting would be fine.
But If you're planning to have one or you already have one, it's always better to have your own house.
At the end of the day a $40 payment would mean everything to you and your family.

Buying a house can be considered as a liability rather than an asset, So once you buy a house it will further drain more money on your salary specially if you took the house via housing loan.

Renting is good for short term specially if you only earn enough for yourself. Only buy a house if you can earn a comfortable income every month.

I prefer to rent a house instead of having to pay home loans up to almost 50% of my salary, of course it is very financial torture that resists the desire to own something because I don't want to make life difficult for myself, it's much better to collect the available money first, to buy the desired house one day.

Own is always better if you are planning to live therre for 10+ years

Owning a house depends on a lot of factors. For me, it was a no-brainer considering that it was a first home for our family including my parents. If i had the option to consider this as an investment, for example in cases where your father has already built a house in a decent enough city, I'd definitely accept the mortgage on one of those city apartments that have re-sale value. (Re-sale value is of course something you have to judge depending on country, state, locality).

The 40% payment of your present salary may seem higher but you have to bet on your own future growth. Be optimistic damn it, its a free market. That 100 USD you earn will soon become 120==>160==>200 USD and then the 40 USD payments wouldn't seem much. In such a case, I'd advise to increase the monthly installments and reduce the re-payment tenure. Make sure to check the pre-payment terms on your Home Loan so you can make big payments once in a year to cut down the Principal in the initial years. (If you don't understand this, then amortization will end up costing you a lot more.)

My verdict, A 15$ rent versus a 40$ mortgage payment to "own" a house, is a no-brainer imo.

Owning a house is much better since you would be able to give it to your child soon and of course its a permanent one not unlike renting an apartment and moved to another one it's a lot of work and you don't actually own anything unlike with owning a house it can considered as your asset. I think it still depends on the person but for me I choose to own a house rather than to rent one.

You have to look at it in the long-term, if you think that you are going to spend more money doing mortgage on a house in 10 years compared to renting a decent apartment in 10 years then you could probably see that renting will be for the better. Maybe in that 10 years, you can save up to buy your own house.

I will pay $40 every month and manage myself with a smaller budget because I see value in paying $40 since it will one day own me the house and paying rent means I am getting nothing in the long run. I would actually save and pay my mortgage faster to avoid the interest, if applies.

Maybe it is because of the place I live at, it is possible to manage within $60 and some western countries might pick the renting option because they do not want to compromise with their lifestyle. But I don't think paying $15 every month without any kind of goal is worth it. Just by paying $25 more, I am securing a property and the value of that house would be also massive by the time I acquire it.

Depending on where you live, buying or renting will give different results, in the country where I live, most people see a house as an asset that cannot be changed. But I have a simpler thought than this, because the choice of buying or renting is not so important to me. Depending on the way of thinking, I also bought myself some apartments but with the purpose of doing business and using it to rent to others, that is also a way that I can maintain the things that I'm doing.

If owning a house means not paying monthly then that's better than paying its mortgage every month, that's simply the same as renting.  If I wanted to settle in a place,  I would rather be buying a 300sqm lot and build a small cabin there to avoid renting. But If I have to choose I guess I'd rather be renting $15 a month so I have an option to just drive away. It's a good time to buy a house but prices are inflating.

Honestly, I don't want to be paying a loan for 25 or 30 years just to have house. I'd rather save and invest and look for alternative sources of income to be able to build myself a house without getting a loan to be paid for almost a lifetime. That may take a decade or two, it doesn't matter.

But as far as my locality is concerned and its socio-economic situation, only a few minority could do this. The huge majority will have to apply for a housing loan to be able build a house. Majority of the working class in my country cannot avoid getting loans every time they buy something expensive like a car or a piece of land or a house.

In a situation you've described I would take a rent. Recently I had to make a similar decision and I chose to rent because this makes you a free person. Mortgages take years to pay off and you're basically stuck with the place you've chosen for all that time, and for me personally, that's an issue, because my work can entail moving to another country for better career options in the future. Also, apart from my own earnings, I don't have any additional backup and financial support, so a mortgage is a risky option and would require limiting spendings significantly.
In another case, if I wanted to live in a certain place for the next 15 years and the financial situation was more stable I'd chose a mortgage because in general, it's a more rational option.

First of all im single person and my first choice would be living in parent. It will save from monthly rent and bills like electric, water, internet etc. But if I have to live own by own it would be renting house not buying. Because that house might be perfect for me but in the future its not fit to my family. It will cause extra payments to me. When i get married and have kids definetelly I will buy a land than build our house on it. But if my bank account digits not enough than I will use mortgage to buy house.

Why do i think like that?

We can think of all of us as seeds. When we are seeds, we move from small to large pots, sometimes even our soil changes. When we grow up and become a tree, we must root our roots in the most appropriate place. Then we can live a happy life.

Family is more important than money. The shroud has no pockets

As for me, I would rent a house first because I think the remaining 85 USD wouldn't be enough to sustain myself or my family's necessities. I'll use the time frame of renting in saving enough for me to buy a house when I could completely afford it. It's really important to have your own house but we have to be financially prepared to build or buy one.

It actually depends on your situation. If your work is changing location from time to time and you have to relocate and you truly like your job then renting is the option for you.

But in the long run, owning your own house is still the best option. You have the value of appreciates yearly until you finish paying it. You can eventually sell it as a good profit margin or rent it or stay on it and you don't have anything to think about mortgage when you're done paying it.

Your example is not really matching anything I would know of but here is one personal example here from where I used to live
The rate of the two-bedroom apartment was 600 euros, the cost of the same apartment was around 200 000 euros, in both cases full furnished (that's a lot, trust me), taking into account interest, on my current mortgage is close to nothing, you would pay it up in around 30 years of rent. Of course, it sounds a lot, but you should really look back after 10 years of paying rent, you have paid in this case 72 000 euros and you have...what? Nothing! At least in the case of the mortgage, you can sell this to a buyer and he will continue paying the rates but you at least end up with what you've already paid! And one more thing, if a house would be that expensive to be covered in like 100 years of rent to full price, why would the owner choose to rent and not sell? It would make no sense, right? Same for a house that would be paid up in 10 years of renting, why would anyone rent, they would go straight to buying.

I did rent for 2 years when I moved away from my parents, at the end of those years I realized that it has been a mistake, If you plan to stay in the same city for a longer period or for life, once you have a stable job renting makes no sense to me. Of course, there are different cities and different prices but from what I can see around here if we cut out city centers and resort cities, excluding Germany which as usual does stuff on its own way, buying is way better.
In your case the sums seem a bit arbitrary, the option of paying 15$ in rent and the mortgage at nearly triple...probably at this point where the mortgage is that big, I would take into consideration a home further away, thus cheaper. But if there is no option then probably I will choose rent too till I can get out of that place!

Just basing up on the situation given or just simple talks about 40% of your salary for it to be used solely for mortgage for long years which is usually talking about
20-30 years based up on the country where I do live.

For me I cant really risk that out on having only 60% left on my salary and heck, you wont know on what future brings because no one can really guarantee that you would really be working on the same company for more 25 years.

So its a bit of a risky if you dive in with this option even though mortgaging is really something you do end up on having something rather than on purely renting
but you should mind about those "what ifs?" along the way.

I'd rent for 15% of my salary instead of 40%. Yes, I'll get a house if I manage to survive with 60% of my salary. But, in reality I'll be extremely miserable if I take the loan path. Who knows, I'll be sick and die in vain before I get the house certificate.

I don't have a problem with loan, just trying to be realistic. Also, wise man says "don't spend over 20%/month for a loan."

Can you confirm the length of mortgage because mortgages are normally half of rent costs in the UK over a 24-26 year term.

If renting is cheaper than a mortgage it might make sense to work out how much you're paying on a mortgage compared to rent.

For a mortgage at 4%, the 15$ rent and saving/investing in stocks or a local company with $25/month might be better

That being said, you'd probably put in for a 26 year mortgage and pay it off much earlier, but imo you're better off saving at least 12 months of mortgage payments as a rainy day fund before paying of the rest (even if everything is insured).

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Based on the UK metrics, if you're staying somewhere for up to 3 years, renting is the best choicee to make unless you're buying with cash from an online estate agent.

Mortgages are good if you're staying somewhere for more than 3 years as you should build enough equity in that time.

Getting approved for a mortgage is normally the hardest bit though as it's normally 3x-5x earnings + a 5% deposit.

Individually, the average salary gets you a mortgage of £185k, while the average house is worth £350k...

Hi guys, I am trying to understand certain psychological parameters of young tech savvy generation when it comes finance with responsibility. The question is simple,

Let's assume you make 100 USD salary every month. You can buy a house through mortgage loan and your monthly payment will be 40 USD and that is a long term commitment.

But you can also take a house on rent where your monthly outgoing will be 15 USD. You are free to leave and move to another house anytime you want.

What would you do? Explain your reason.

Imp: I need your answers based on your current location, socio economic scenario, job security, financial backup etc. You don't need to share these details but consider this real life details while making decision.