Topic: Rent or buy real estate - let's have a debate - page 10. (Read 1388 times)

I think people are missing the point, its not because rent is better than buying, that's not what people who support rent are saying, its that spending the same amount of money on something else would be better. Now, if your case is something like you get a mortgage and bought a house and paying loan back and you wouldn't be able to buy it otherwise, then you never had money, you had a promise of future income, hence you wouldn't be able to spend that money on anything else anyway. However, if you are a wealthy person with enough money to just buy a house, I would rather be in a rented house at that point because I would rather spend that money on whatever made me rich enough to buy a house full in cash, I am sure that would be a better investment. Those are two very different situations.

It's not wise for someone to live in a rented apartment for their entire life time, buying a house just as you surgest or building one just as I have explained below, should be a better choice. People that are steadily living in rented house, while they can afford their own home might be right in their decision, but to me it's nonsense.


For me, I don't really like loans, but what I will do is to save up money and build my own home. I can just be paying the house rent untill I save up and build my home(I don't breathe well if I am in debt; it's a metaphor.)

Back to the deal: let's assume that the person's salary is enough to take out a bank loan and buy the estate. After buying the house, if it will take him like 5 years before he can finally repay all the debt, it will take him a bit longer to save up money to build his own house in the structure that suits him. Check out my example below.

Mr. A's yearly income is about $30k, and his yearly expenses are about $15k. Let's say he needs to buy a house for about $800,000, and he took a loan of $800 from the bank to buy the house. He will need to repay the loan in about five years with 10% interest. If Mr. A decides to pay the bank $15k every year for the next five years, he should be able to pay the loan.

Second example: If Mr. B wants to build a house for about $900k and his yearly income is also $30k and his yearly expenses (both for the house rent) are $22k, if he decides to save up $8k every year, he should be able to save up the money within ten years. If he starts building the house, there are two things involved: either inflation might have increased the price of his budget and he will spend more than his budget, or the house can take more than one year to finish up furnishing everything in the house. So building the house will take a bit longer. But even at that, if he finally finishes the furnishing of the house, it will reduce his yearly expenses because no rent payment again.

It's usually based on the individual's decision; people should do what they feel will work for them. There are people who don't know how to save, which means they can't save for that long, so such people can go for the loan.

There are also some people who are not good at taking loans, like myself, so they should deciplin themselves to save up and build the house, despite that they will be paying rent till they build their home.

OP, you are very correct, it's better to take the loan and buy the house, than live in a rented house for your entire life.


Cheers 🥂, Dr.Bitcoin_Strange 👺👺

If your work is on a field and you need to go in many places then of course renting is the best. But I am sure that even if you've got that lifestyle, one day you'll be tired and you're dreaming to have your own real estate so that you won't pay anymore with rent.

And with having no property with being approved by the bank, I am sure that someone who's still young and can afford it will do that. No doubts of taking that potential approval and will buy property.

Same here on which i've been spending for long years now on paying up some rent but didnt really go into the path on taking up some loan or mortgage on owning a house. Why? The rent that i've been paying for a month is less than $100 which it isnt really that something that big on which its something an amount that i could deal with on monthly basis. As much as possible, im trying out to avoid on taking up some loans and would really be living on what i do have. It is really just that pain in the ass on having some loans and other things attached on borrowing.

Im really that contented on what i do have. Yes, its understandable that building a credit score is important because you would really be able to make use of it in the future or would really be something
beneficial but i did really neglect or avoid it out and dont really care. I do prefer on buying everything on the time that i could pay it on cold cash and wont really be taking
some mortgages.

I will not even think twice I will go for the loan and buy the property. I spend so much money on rent in my country and if I save my rent for five years, it will be enough to service parts of the loan. Also in my country, the rates or tax on properties is cheap so it will be my best option. Now it can even appreciate in the future which will make you make more money if you want to sell it in the future. Living in my own house will also help me grow some plants and rear some domestic animals in my house. There will be a small garden and cages for fowl and a pond for fish. I will save money on vegetables, eggs, meat, and fish. So my final answer is that I will take the loan to buy a house if my income supports it.

There is not an easy answer to this, in theory owning your own house seems like the best scenario, as once you finish paying your house then you can get rid of that expense and use that money for something else, while if you rent then that is an expense you will have until you die, however when buying a house on credit you will pay the house several times during the period of the loan, which on average it will last for a few decades, and you need to hope that a huge economic crisis does not strike during that time or you will lose your house and all the money you invested in it during those years.

If you have a plan to buy a property in the future, then why not do it now especially that you are already capable to do it by taking a loan. However, if you have other better plan that you want to achieve first than owning a property, then owning that property may not be align with your plan. So it all depends on your life’s plans. If renting will make you profitable this time and may give you the current advantage, then stick to it and set buying a property as you future plan.

As of now I will say rent is the best choice because due to the increase of Fed's interest rate the loan interest rates are increased by the banks as well so even if the increase is by 0.25% the loan tenure may increase 3 to 5 years.

Also we can't sure about the appreciation of that asset will be 10% for the coming years as well due to the internet boom and high unemployment rate so we are at the worse economic state all around the world.

Don't buy a property unless you can generate revenue from it for example commerical real estate is good.

 
There are many things someone has to take into consideration before deciding whether to buy a house or rent an apartment. If I am okay with my salary or wages and if I take a loan from the bank and their interest rate is not high and the reduction rate from my salary will not affect me, I think it should be better for me to buy a house than rent an apartment because the rent payment is always increasing every year. It is always hard to be paying back a loan because that will really reduce some of your expenses, but if someone thinks of it well, I think when someone has their own apartment, it will be better for once.so I will prefer to buy a house to rent.

What you mean by BUY is looking like taking a loan from bank which is really not the kind of advisable if you are not sure whether by the next 10 years you will still have a good paying job.
When you  own property by the way you get attached to the place as well. You may not be able to move somewhere else unless you sell the property.

If I have to buy, I would buy the property in cash, nothing to pay for afterwards, no bank loans too.  If I have no plans to stay in the particular place. Renting will be the better option.

I think it's better to buy then rent it to someone else. real estate is a promising industry as a means of investment. It's a big loss if this opportunity is wasted. some people who really need it but don't have enough money to buy it, of course, can only rent it, now here we have to be a landlord who rents out, that's very profitable for us.

What you have in your pocket will determine the answer.
You should consider how much you would pay annually if you planned to rent the apartment for four years. Keep in mind that inflation might happen at any time, at which point the landlord may decide to raise the apartment's rent. However, if you decide to purchase a home, it could be challenging at first to pay for the house's price and other connected costs, but once you do, the home is yours forever. Instead of working against you, inflation will benefit you because if you decide to sell the apartment when prices are rising, you'll get a lot more money for it.

I think to me, a big question would be how long you need to spend to pay for the property (and whether you're allowed to pay it out faster), and how confident you feel that you'll be able to find a different but similar-paying job in case you get fired or you become unsatisfied with your current job. Oh, another factor is the difference in price between the monthly rent and mortgage payment. If mortgage is around the same or less, it's great. If it's 2x+ higher than the rent, it's worth a much more serious consideration.

I think purchasing your own place is very nice, especially if you're the sort of person who is ready to settle and aren't planning to move to another city or country for more than 6 months.

Considering my situation, what's the better option for me? Well, it's a tough call. Buying could potentially let me build equity and benefit from property value growth, but it also means taking on the responsibilities of homeownership. On the other hand, renting offers more flexibility and less hassle.

I believe it all depends on the country and the market conditions there. There are number of states where it is practically impossible to take a loan without a collateral in the form of already existing real estate. I live in such a country, for example. Imagine you are a 26 year old, you only start your life way and your parents couldn’t provide you with an Appartement or a a house. You don’t have any collateral, you cannot take a loan in the bank. Even if you could, the interest rate would be near 30% in a year which is the best option because it could be up to 80%. So you don’t really have another option except for renting, because your salary would not cover neither a body of the loan nor interest. The most spread option for people in my condition is to safe money for years, for 10-20 years in order to get an opportunity to buy a flat. That is why I am interested in crypto, cause I believe it would safe me several years of such savings and will provide with an opportunity of buying the real estate for living.

It really depends on your circumstances. Obviously, if you have the cash to buy a property with minimal mortgage/financial assistance, then buying is the way to go. If you are someone who works in a highly populated area and you spend a lot on travel costs, or waste a lot of time traveling in comparison to renting, then maybe this convenience is necessary to put less pressure on you and open up more time for more important things in life.

My overall opinion though is that renting is inefficient unless it is absolutely necessary for reasons like mentioned. You are not putting the money toward anything, it is just money disappearing for accommodation. If you have to rent, rent cheaply and do everything you can to buy your home. Owning your home is the greatest investment you can ever make! Not just from a monetary perspective, but a financial and well-being security perspective.

Those who are usually in a financial position to own their own home are the ones who rent. Renting means deducting a certain amount of money from your net worth every month. Because the money spent on house rent is unlikely to ever come back but if you have the ability then you should definitely buy a house and stay in your own house, there is no problem if you have to borrow some amount of money. Because even if you borrow some amount of money, if you can build a house, then the entire money will be spent on your house and you will never waste that money. When the house is completed, your savings will be equal to the amount you would have paid in rent each month when you were living in your own home. In that case, I think it is a right decision to build a house instead of staying on rent.

The decision to buy or rent is an economic one. There is no blanket answer. It depends on the numbers. If you can afford to buy, but it is cheaper to rent, then it seems like a solution might be to rent and invest the money you saved.

Also, your home should not be generally considered as an investment because the gains from selling it are generally lower than the costs of owning it, though there are exceptions.

It doesn't just depend on income.
If you are not going to live in this city for a long time, but plan to move after some time, then obviously renting will be the best solution. And if you know for sure that you want to stay in this place, then a loan, or a mortgage (depending on what suits you best), will be the best solution, because in a few decades, this property will become your property.

If we keep in mind that crypto market is very volatile and magic happens once every 4 years, then I don't really understand why should someone take a loan to buy an apartment instead. There is a dip in crypto market right now and I immediately bought matic at 0.5700 price. At the moment, I'm in 14% profit and I believe that this coin will bring me 200% profit this year and way much higher after bitcoin halving. Mark my words and tag me when Matic reaches 1.71 USD.
I prefer to rent unless I become a millionaire because I change places, plan to change the company where I work, plan to change the city or the country. Rent is flexible, portable and sometimes you manage to find it in good price, for me, unless I am a millionaire, I prefer to rent because mortgage payment is a big financial task and a huge responsibility, a huge stress factor when your life depends on your salary. Sometimes, mortgage payment is a fetter with ball and find it very hard to risk in life because of a huge mortgage payment.

Also, I don't really understand this western culture, what's wrong to live with your parents if they let you to do so? Even if you marry? What's wrong? Nothing, you'll save money and your parents will be happier unless they are a type of parents who ask their kids for a monthly rent price.
I hope this western culture of moving away from parents will bury deep because it's making things worse and terrible for everyone. That's just unnecessary!