Topic: Rent or buy real estate - let's have a debate - page 4. (Read 1383 times)

No one would want to settle renting the property forever, as you are always spending money for rental and yet, you won’t own the property in the end. That’s why buying a property is always the best option. But if taking a bank loan is the available option for you to gain the property, for me the answer depends based on how much the monthly amortization is and if you can still manage to sustain your necessities from your salary net proceeds. Because if not, then don’t compromise your present income and struggle on your finances. Just slowly save from your salary and keep your extra money, and once you can afford to buy it in cash, then never hesitate to make your goal realized.

Everyone wants to own their own real estate property. That's why most of them are unable to get it because of financial problems, and the others don't make a way to have it. Others to have their own property are going through 30 years to pay to have their own house and land. And the only ones qualified for this 30 years to pay are those who are regular employees or have their own businesses.

It's just because most of them are poor that's why they end up renting and making a strategy to earn money to cover their daily expenses.

Just like what other guys have been telling here, it actually depends! And that is the truth!

The topic seems to be pretty common as well on TikToK from Financial Gurus that will definitely recommend go for a bank loan to build the building and buy the land, then use the rent income to pay for mortgage. Pretty easy to say and hard to execute.

Just like what Dave Ramsey said, credit is a risky business, and to add from Mark Cuban, "if you loan a capital for your business, you're stupid because there are a lot of risks in business but the only guaranteed is paying back that loan.

The question goes, what happens if you don't get tenants for your building? Do you have plenty of alternative income sources to compensate? If yes, then continue, if not, please don't - you're gonna waste your payments.
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Anyone, of course, wants to buy property because it becomes a basic need after consumption, unfortunately not everyone can afford to buy it so they have to rent, and the best thing is of course we have to continue to increase our sources of income so that one day we can buy property and not rent anymore.

Your first statement might be arguable, some people think that might be contradictory, but for me I am not directly contribute to the housing problem because I only buy what I need, I don't buy many lands/housing that I don't need and just speculate on it, I only buy land that I need to build a house that I need, so I only buy the thing that I need. It's only bad if someone buy large/multiple area of land / housing that they don't need and speculate on it. For short, I don't contribute to housing problem since I am not hoarding house for investment, but I take advantage of it and that is also big if, if I sell my land, which is not my initial intention.
 
That was your first point, while your 2nd point comparing Bitcoin and Housing is very much non-sense. No one ever really need Bitcoin for their live, have you ever seen what happened to people who can't afford to buy/rent a place to live, they are very much in trouble. Now, have you seen what happened to people who can't or don't -because using bitcoin is optional- use Bitcoin, they still enjoying their live. So, in short speculate on housing/land is taking people's right of affordable housing, while speculating on Bitcoin won't give any significant effect on other people's life, so it's totally different

If you think that hoarding land for profit is unethical and not good, then investing and speculating in your land is no different than hoarding land. So your statements are contradictory in the first place. If holding land to get rich is unethical, what is holding bitcoin called? Because you are also contributing to the price of bitcoin and making it difficult for many people to buy bitcoin. Just like land, hoarders will be happy when the price rises, but those who need it will buy it at a very high price, and this applies to all properties, not just real estate.

if I have the ability to buy real estate, then I will buy it. however, when we rent land, a house, an apartment, or something that is our primary need, then the main goal we have is to own it as our own and not rent it. we know that with rentals, a certain percentage of our income will go towards paying those rents, and that will continue to happen without increasing the amount of investment we have.
On the other hand, if we have the ability to buy real estate, then we can grow further, moreover, we can also rent out the place in the future.
However, this all depends on the financial capabilities of each. if he can actually afford the thing, then he needs to buy it, and if not, then the alternative is to rent it.

You are right. Because of course the majority of people also want to have their own home when they can afford it. But yes, financial conditions are indeed one of the obstacles for someone to be able to buy a house. Inability from a financial point of view often makes someone have to keep paying rent for the place where they live. But I believe if he has a strong desire that is accompanied by careful financial planning for the future. then surely someone who rents will also definitely raise money to be able to one day own or buy his own house. But of course he must have an amount of income that allows him to still have money left to save or invest.

it's just like for example not me against it, maybe our country's area is different. but I'm sure land is the target of business people and that's not a mistake. surely a lot of land is still vacant, it's just that different needs for strategic places and the power of money make the choice. Even vacant land far from cities or strategic places is now the target of family investment hopes for the future. maybe for young people they haven't thought about it that far but thinking earlier is better.

For sure, all of us wants to own real estate properties and to live in our own home without the need of renting but we have different financial situations. Some people choose to rent over buying properties because of a lack of funds and renting is what they could only afford so that doesn't mean that renters choose to rent because they are not into buying land properties. It's just that we have different privileges.
It's just a good thing that there are rent-to-own programs in our country which will also help renters to own land properties by renting for years. It may take a long time but I think it's a better opportunity than just renting alone. I'm sure that if we are all financially capable of investing, real estate investment will be one of our main options.

Well, renting is never a choice but it's a compulsion, one who rents a place to give doesn't do it because they want to but they do it because they have to, the main reason behind that is of course lack of finances to be able to buy a property. You can never find a person who has enough money to buy a home but still lives on rent, if you find anyone doing that, that person is either out of their mind or have some complications in their life.

So the answer to the question of whether one would like to have their own property or rent a house will always be that they would like to have their own home instead of paying a certain amount of money in rent every month and living in different places in different phases of their lives.

The method you apply in my opinion is the most correct. if we understand bitcoin investment then it's better to invest, than we have to save in the bank. I give an example of independent saving, because not everyone is brave and understands about their investment, some are still afraid of investing. so it's not wrong for us to save ourselves instead of taking a loan at the bank. This is the point I made.

Because of what, Invest if we don't have confidence in what he is investing, it's better not to ever try it. because the key to investment is faith and patience. Moreover, as you said, investment has a high risk, but it is also possible that we will benefit in the near future by investing in bitcoin. I mean Invest wisely and Dyor. don't invest because you go along with other people.

This is how many young people are doing, instead of saving to have enough money to buy a house, they use that money to invest. That way, they can shorten the time it takes to earn enough money to buy a home. I am also applying this method for myself, but I also want to tell everyone that. Investing and saving are not the same, investing can bring high returns but much higher risks. So people need to be aware that we can have enough money to buy a house quickly but also potentially lose everything.

Instead of saving, it takes us 10 years to have enough money to own a house, but with bitcoin, maybe we only need 3 to 5 years to have enough money. Everything is always proportional, high return comes with high risk.

I've seen content discussing this, how he convinced people that forcing themselves to take a bank loan to get a house is quite dangerous, even though we can afford to pay in installments every month, according to him, it's really not recommended because the bank's interest is quite high and also problems in the future that we cannot predict may occur, for example dismissal so that in the end we will lose the ability to repay and also lose the house because we fail to repay.
The current concept is very different, maybe when a few decades ago investment was still very limited to gold and land, now it is quite popular with stocks and also Bitcoin if you want, investing in these two types of courses with in-depth research can make it possible for us to have a house without having to go through a bank loan, so that we will have the house with real value and patience is the key.

The correct title of the topic would be: When to choose to rent residential real estate and when to buy?

Objectively it should be noted that there are very different situations in life.
For example, a young man from a very rich family can afford to buy a new apartment every six months. His family and he have a lot of money, and he just invests "unmovable money" in quite a liquid asset. Here's the answer - if you have a lot of extra money - of course buy real estate, it's not a bad investment for the future!

Or another example: a young man from a poor family, just starting his career, got married, and the young family wants to live independently. The only way out is to rent a house which corresponds to their income. And there is another problem: if they buy an apartment now, it will be a very budget housing in not the best area of the city. That is, not very liquid, and not very much in demand in the market. If you take a mortgage, the cost of housing in the end will not be competitive. This is the economic rationale. But there is another - the family is young, they strive for the best, in the future - children who need kindergartens, schools, quality and not far from home. And yet a young family can change jobs and move to another city. At the same time to sell illiquid housing is a problem. Therefore, for such an option, the most reasonable solution is to rent a house corresponding to the level of income, accumulate funds, for the subsequent purchase of housing in a more favorable location.

I was lucky, I live in the capital, and I bought my first apartment when I was about 25 years old. This apartment is in the capital, in a good neighborhood, which guarantees its liquidity and demand. Then there were 2 more apartments in other areas until I found a place where I want to live a long, quiet and comfortable, near the nature and at the same time in the city

I also prefer to go this way. It's not just for us when we get old. but for our children as well so they can be calmer about their future. Because I understand how it is not easy to start a business career from the bottom. So that I also want to live comfortably when I'm old and also be able to give my children an inheritance in the form of knowledge and vast land. making a rented building on our own land seems like a good idea. provided that of course the location must be strategic so that potentially people need houses to rent in that area. such as near universities, near offices, near factories and so on.

Sorry I don't fully understand the meaning of your post here, I am not against buying house tho, just like I said in my first reply, I will build a house (on the land I already owned) when the area has become advanced with many public facility, and I also think people should buy house if they want to make family, it needed to make the family stable and feel secured.

What I won't do is hoarding real-estate and land for investment, because this is the main reason why people couldn't afford housing today.

It just happen to see a video somewhere in Australia that there's a politician talking about funding in different sectors with billions of AUD while their people are struggling to have a home. I am not sure if that's for real but this made me realize that even rich countries do have problems with housing projects. That's why still many of its citizen is choosing to rent, well they've got no choice actually but we're seeing the popularity of living in camper van. We do know that people don't want to have monthly obligations and pay rent but if ever they've got a choice they would love to get out of it and own their own real estates.

Yes and this would really be that depending on several factors like;

- you do have the property but its not feasible or income generating so you do sell it out
- you dont have money to buy a property and  thats why ending up on renting
- Lots of property which you do rent those houses for income generation

This is why it would really be situational because even if we do like on having or owning a house but we dont have the money to do so then
you would really be having no choice.

I also agree with your view and it really depends on the financial condition of each individual. A strange decision when we have the ability to buy instead we choose to rent. It's another case when we don't have money and use a loan to buy a house and in cases like this we also have to look at the ability to cover monthly expenses and if he thinks this method can be burdensome then it's best to wait until you have 50% of the money in your own savings to buy a house.

It basically doesn't matter when you have to take out a loan to buy a house to live in with your family and even if you calculate the annual rent, there isn't a big difference in the rent price or the monthly fee for the loan. The consideration is the extent of the ability to pay the monthly contribution and if it is burdensome then it should not be done. Collecting money regularly is also a solution for buying a house, although this method will take a little longer.

On the other hand, there is a way to buy a house provided by the state (subsidized) and the advantage is that we are not charged large fees for interest, monthly fees or down payments. Even though this house is much smaller than the usual house, but at least we are not too burden by any cost to pay it off.