Topic: Rent or buy real estate - let&#039;s have a debate - page 5. (Read 1323 times)

Quote from: Uruhara on June 23, 2023, 02:20:24 PM

What's the better option for you and why?

It all depends on your own finances to decide what is best for yourself. What I'm experiencing now is better. Rent first because the cost of renting a house is only 3-4% per year of the property value. I want to share my experience that in my country it might be different than in your country.

For example, buying a property for $ 50k, 20% deposit is $ 10k, the remaining $ 40k Kpr 15 years, interest is 10% per month, the installment is $ 285.
whereas if the rent is only $ 1328 per year ($ 50k x 4%), it means that 1 month is only $ 112.
the difference that can be saved $ 172 per month.

If you rent for 1-5 years, you don't think you need to rent because you can take the $ 10k that was used for Dp to be used for rent for 5 years.

So in the first 5 years we were able to save $17,136 ($285 x 60 months) and were able to buy land + foundation because a property with a selling price of $50k land costs around $20k, a building is $20k, the developer's profit is $10k.
now the remaining 10 years while adding property buildings that need to be added because you can still save $ 2059 per year from the difference between mortgages and rent assuming the house is of the same value.

This is what I do now, instead of borrowing money from the bank, I better save it myself. With the hope that even though we rent, in the end we also own property.

irsykes

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In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs, while I am paying mortgage, buying piece of land in some village remote -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Not to lecture or anything. Even though I bought the land for investment and speculation, but I don't think hoarding land investment is a good thing and ethical, this is what made housing market soaring, it makes people who actually needs housing can't afford any, and I just don't want to be part of the cause. I don't have problem with people who are doing that, I still think they shouldn't do that, but government still allowing land and real-estate to be hoarded as investment so yeah, people can do what they want, but I just won't do it.

I think nowadays it is very rare for people to think like you. You think very wisely while keeping other people's interests in mind. And I think you can be called a good person.

I personally haven't thought of getting there yet. because as long as the area of land that I own is below normal, then I personally don't have a problem hoarding it because I might be able to pass it on to my children and grandchildren one day who also definitely need land to make their homes. It's not just about profit. but also about the needs of our descendants who will be more and more. in essence, I personally have not been able to be as good as you in this matter.

right, assuming it looks wise to respond to problems, but that looks just lol because it's not quite right. he doesn't think the future of being a parent is heavier. for example if I have a large area of land, continue to make a rented house at a lower cost than the others. this could have the effect of possibly being more mitigating than spending big money. many people rent houses complaining of high costs out of necessity due to circumstances that make it more normal to work

panganib999

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Quote from: flyingcarpet on June 22, 2023, 02:58:16 AM

I have been debating about it with couple of my colleagues whether stay on rent or buy a property.

Let's assume, you are well capable enough to buy a new property through bank loan. Your income supports the mortgage payment so banks are willing to lend you money.

What will be the best route to take? Buy the property or stay in a rented place?

The usual appreciation rate of your property value is around 10% owing to the development work that are ongoing. For rented property, your rent increases by 15% every year.

What's the better option for you and why?

Renting or buying real estate is completely situational and up to you. I've seen people fare better with buying it, some prefer just renting it out or taking on a lease instead of spending stupendous amounts of money for a house they won't stay too long for.

Here's some factors that could affect whether someone would decide if he wants to invest in a property or just rent it out.

First is their propensity for travelling and moving out of places. Some people live their lives in a single city and never move out, some jump from one state to another for school, job, or romance (it's true). You'd be right to assume that the first scenario will yield to the person buying a property outright, while the latter will cause the person to rent properties as it doesn't make sense to spend so much money when you're not going to stay for too long in that particular state anyway.

Another would be their goals. Some people look into real estate investing and thus this leads them to buy real estate. Some just wish to have a nice place to stay in for the meantime and are not willing to spend a lot of money on the fly, this will lead them to rent instead and re-allocate their investment money to something else they see fit.

BitcoinTurk

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I've been on the same page about buying a house for years. In other words, if you are not going to live in the house you bought yourself, I think you will have made an unnecessary investment. If you have taken a loan for the house you bought, you will also pay the interest and a part of your salary will always be missing until the year you pay this loan. This means lowering your quality of life. I am against this situation. There's no reason to buy a house you won't live in. You can use this money in many different areas. Because of people's interest in real estate, they have been paying some of their salaries for years and trying to live off their remaining salaries.

If you are going to live in the house you bought yourself, then it makes a little more sense. Even if this is the case, you have to pay off loans for years and live on a part of your income. Human life is not that long. Strive to live well. If you have a high income, that's different.

I totally agree, if a house is to be bought it would be more logical to buy it for ourselves. However, even though the house prices have rised like a balloon it would be a good option to find a bargain house and rent it by renovating it in order to earn passive income. Of course, one day the housing bubble will begin to deflate but as long as people are interested in this, this process will come later. The budget to be used for housing investment can also be evaluated in different investment options but before making such a decision it is necessary to carefully analyze the return process of that investment and the amount of passive income that it can provide on a monthly basis. Especially when you buy a house with a mortgage it has a negative effect on the quality of life but as I said in my previous comment if the rent and the installment amount are close to each other the purchase option will definitely be more reasonable.

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Quote from: yohananaomi on June 22, 2023, 02:23:19 AM

Quote from: Paul Pogba on June 21, 2023, 10:48:31 AM

Everyone certainly wants to own property because property investment is the safest and most profitable, in several big cities in my country the increase in property is fantastic and makes many poor people sell their land and they choose to live in rural areas which are still cheap, unfortunately many crimes can occur in business property such as fraud, government-backed evictions and so on.

agree, owning property is an investment that can be sold at any time and usually the investment will continue to move up, especially if the property is purchased in an area that continues to grow and has adequate supporting facilities, it is certain that the property will continue to be a target. It is not surprising that the more property is sought after, the more expensive it will be, so many who do not have jobs [poor] have to be shifted to rural areas because they cannot afford it.

Under the condition that the country is free from war and has a stable government.

As we can see now, the ongoing war in Ukraine has caused the property industry to freeze for over a year.

In a safe country, this wouldn't be a major issue. And one of the key factors determining a country's safety is the government's policy-making decisions.

Uruhara

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Quote from: Paul Pogba on June 23, 2023, 06:47:36 AM

In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs, while I am paying mortgage, buying piece of land in some village remote -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Not to lecture or anything. Even though I bought the land for investment and speculation, but I don't think hoarding land investment is a good thing and ethical, this is what made housing market soaring, it makes people who actually needs housing can't afford any, and I just don't want to be part of the cause. I don't have problem with people who are doing that, I still think they shouldn't do that, but government still allowing land and real-estate to be hoarded as investment so yeah, people can do what they want, but I just won't do it.

I think nowadays it is very rare for people to think like you. You think very wisely while keeping other people's interests in mind. And I think you can be called a good person.

I personally haven't thought of getting there yet. because as long as the area of land that I own is below normal, then I personally don't have a problem hoarding it because I might be able to pass it on to my children and grandchildren one day who also definitely need land to make their homes. It's not just about profit. but also about the needs of our descendants who will be more and more. in essence, I personally have not been able to be as good as you in this matter.

uswa56

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Quote from: yohananaomi on June 22, 2023, 02:23:19 AM

Quote from: Paul Pogba on June 21, 2023, 10:48:31 AM

Everyone certainly wants to own property because property investment is the safest and most profitable, in several big cities in my country the increase in property is fantastic and makes many poor people sell their land and they choose to live in rural areas which are still cheap, unfortunately many crimes can occur in business property such as fraud, government-backed evictions and so on.

agree, owning property is an investment that can be sold at any time and usually the investment will continue to move up, especially if the property is purchased in an area that continues to grow and has adequate supporting facilities, it is certain that the property will continue to be a target. It is not surprising that the more property is sought after, the more expensive it will be, so many who do not have jobs [poor] have to be shifted to rural areas because they cannot afford it.

When there is an opportunity to buy then never miss it, in life we must dare to take risks for example by going into debt to buy property, in my country to owe for property needs it is made easy, and this is what made me take 2 house loans on the outskirts of big cities and 1 I rent it so I can increase my income to pay the installments.

I agree with that, buying on credit will sometimes benefit us someday because as we know that property prices are increasing every year and of course it's better to buy than rent.
For the things that are important in life, I think it is very ineffective if we rent them, let alone property is the most important thing for us and our families.

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Quote from: yohananaomi on June 22, 2023, 02:23:19 AM

Quote from: Paul Pogba on June 21, 2023, 10:48:31 AM

Everyone certainly wants to own property because property investment is the safest and most profitable, in several big cities in my country the increase in property is fantastic and makes many poor people sell their land and they choose to live in rural areas which are still cheap, unfortunately many crimes can occur in business property such as fraud, government-backed evictions and so on.

agree, owning property is an investment that can be sold at any time and usually the investment will continue to move up, especially if the property is purchased in an area that continues to grow and has adequate supporting facilities, it is certain that the property will continue to be a target. It is not surprising that the more property is sought after, the more expensive it will be, so many who do not have jobs [poor] have to be shifted to rural areas because they cannot afford it.

When there is an opportunity to buy then never miss it, in life we must dare to take risks for example by going into debt to buy property, in my country to owe for property needs it is made easy, and this is what made me take 2 house loans on the outskirts of big cities and 1 I rent it so I can increase my income to pay the installments.

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Quote from: Learn Bitcoin on June 22, 2023, 03:37:24 AM

I would say it depends on your financial conditions. If you have enough money to buy a property without taking a loan, why spend money on renting a property? Or, It's still better if you take a loan and buy a property. But, if you must take a 100% loan to buy a property, I won't suggest buying one. You have to pay the loan for a long time.

Meanwhile, many things can be changed. Buying a property is a one-time investment, and you are making a secure place for your kids. You don't know how much your kids will make and whether they can buy a property. If you are about kids' future, You may want to buy a property even with a 100% loan.

Why? Because if you can use that money for something else then you could be richer. Imagine this, you have 120k that you can spend on buying a house, or you could use it to buy bitcoin and then rent. During a full year, you spend 10k on rent, that leaves 110k behind, but you invested into bitcoin, even today ,we are almost at x2 which means that even at the least you would have 200k+ dollars, even after paying rent.

So you started with 120k, rented for a year, and paid it all upfront starting first of January, and rest you put into bitcoin. We are at June now, you still have 6 more months of rent free (because it was paid upfront for a whole year) house, and you already have 200k+, you can now go buy a bigger house if you want, or keep doing this.

Pay another 10k, or even 20k for 1-2 more years, and hold it, if it goes x5 higher, which is not that insane, it's somewhere like 140-150k per bitcoin and doable, that means you will have a million dollars and 3 years of house paid.

icalical

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Quote from: Desscount on June 22, 2023, 10:22:43 PM

In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs, while I am paying mortgage, buying piece of land in some village remote -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Not to lecture or anything. Even though I bought the land for investment and speculation, but I don't think hoarding land investment is a good thing and ethical, this is what made housing market soaring, it makes people who actually needs housing can't afford any, and I just don't want to be part of the cause. I don't have problem with people who are doing that, I still think they shouldn't do that, but government still allowing land and real-estate to be hoarded as investment so yeah, people can do what they want, but I just won't do it.

That's what's happening right now, many are hoarding land under the pretext of investment,
things like that make the price keep going up,
I think the government needs to make stricter policies regarding these investments.

Couldn't agree more, one of the solution that has been proposed by some expert in my country is Progressive Tax for Land and Real-Estate, the idea is simple that if a person or his/her direct family (wive/children that is still legally in a family) own only 20 (or any number suitable) acres of land than this 20 acres of land will has normal tax, if the person own more than 20 the other 20-40 acres land has doubled tax, and more the other 40-60 acres of land will be taxed three times. People has been pushing for this policy but the government just don't want to impose it for whatever reason.

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In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs, while I am paying mortgage, buying piece of land in some village remote -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Not to lecture or anything. Even though I bought the land for investment and speculation, but I don't think hoarding land investment is a good thing and ethical, this is what made housing market soaring, it makes people who actually needs housing can't afford any, and I just don't want to be part of the cause. I don't have problem with people who are doing that, I still think they shouldn't do that, but government still allowing land and real-estate to be hoarded as investment so yeah, people can do what they want, but I just won't do it.

That's what's happening right now, many are hoarding land under the pretext of investment,
things like that make the price keep going up,
I think the government needs to make stricter policies regarding these investments.

icalical

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In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs, while I am paying mortgage, buying piece of land in some village remote -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Not to lecture or anything. Even though I bought the land for investment and speculation, but I don't think hoarding land investment is a good thing and ethical, this is what made housing market soaring, it makes people who actually needs housing can't afford any, and I just don't want to be part of the cause. I don't have problem with people who are doing that, I still think they shouldn't do that, but government still allowing land and real-estate to be hoarded as investment so yeah, people can do what they want, but I just won't do it.

Uruhara

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Quote from: Franctoshi on June 22, 2023, 06:31:03 PM

In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs, while I am paying mortgage, buying piece of land in some village remote -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Vaskiy

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Quote from: Nwada001 on June 13, 2023, 02:19:26 PM

It all depends on my financial status; my earnings will decide which one is best for me.

Building a house will cost a lot. I know it's a one-time deal, but let's not forget the fact that a living house is more of a liability. The expense of paying for rent every year might be off your budget, but there are bills that come with owning a house. Let's not forget that the loan amount will be deducted from my salary on a monthly basis, which will reduce the amount I will have to come home with every month. My wellbeing expenses are attached to the salary, so cutting it short means I will either have to adjust or look for other earning means to meet my bills.

So it will be better if I take that loan, rent an apartment, and set up something that could be used to generate money so I can actually build a house of my own, rather than building a house from a collected loan. If I take a loan enough to build a house, I could possibly use that to set up a business and allow my employees to be educating my loan amount from my salary, so my business can be generating me some income, which I can use to cover up those loan amounts every month. If those loans are fully covered, or maybe there are good profits coming out of the business, only then can I think of starting up the house building. That's when I will see myself as someone who is financially ready to foot the bills of my own home.

There are a lot of things why I would prefer renting an apartment over owing a house, are due to the cost of maintaining such a house, like fixing water leakages and sucking of the sewage system except with the use of a Biodigester system, repairing and paying of electrical bills that will power the entire building, sometimes fixing of roofs if there is a leakage and the cost of keeping the compound clean, if you take all these into account, you spend less money on rent than owing a house and would have the opportunity of living wherever you want.

Final thing is right, apart from that we don't have much of maintenance with own properties. Renting gives the preference to move anywhere, with the person who lives in a restricted budget will say the difficulties faced while residing in a rented property in the third world country. The owners give some terms and conditions which will make us vacate the property at the earliest. Few of which were the limitation in electricity usage, water usage, some doesn't let pets and more things can be listed. For these reasons in my country people try to somehow manage and built their own house.

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Quote from: Nwada001 on June 13, 2023, 02:19:26 PM

It all depends on my financial status; my earnings will decide which one is best for me.

Building a house will cost a lot. I know it's a one-time deal, but let's not forget the fact that a living house is more of a liability. The expense of paying for rent every year might be off your budget, but there are bills that come with owning a house. Let's not forget that the loan amount will be deducted from my salary on a monthly basis, which will reduce the amount I will have to come home with every month. My wellbeing expenses are attached to the salary, so cutting it short means I will either have to adjust or look for other earning means to meet my bills.

So it will be better if I take that loan, rent an apartment, and set up something that could be used to generate money so I can actually build a house of my own, rather than building a house from a collected loan. If I take a loan enough to build a house, I could possibly use that to set up a business and allow my employees to be educating my loan amount from my salary, so my business can be generating me some income, which I can use to cover up those loan amounts every month. If those loans are fully covered, or maybe there are good profits coming out of the business, only then can I think of starting up the house building. That's when I will see myself as someone who is financially ready to foot the bills of my own home.

There are a lot of things why I would prefer renting an apartment over owing a house, are due to the cost of maintaining such a house, like fixing water leakages and sucking of the sewage system except with the use of a Biodigester system, repairing and paying of electrical bills that will power the entire building, sometimes fixing of roofs if there is a leakage and the cost of keeping the compound clean, if you take all these into account, you spend less money on rent than owing a house and would have the opportunity of living wherever you want.

Slow death

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in my opinion it is a great risk and very dangerous and it is unnecessary to borrow from the bank to buy a house, because the bank charges very high interest and the loan to buy a house can take up to 25 years for the person to pay the loan at the bank , so my opinion would be that the best way is for the person to stay in a rented house that has a very low rental price while the person is in that rented house, the person buys land and starts building a house little by little, at some point that house will have basic conditions to be able to live, so the person moves to that house and then will no longer be paying rent

with that, that person could already build a bigger house on the same land, summarizing my idea: stay in a rented house, buy land, build a very small house, the type of temporary house but that has basic conditions to live in, then start building a house bigger, this avoids staying a long time in the rented house and will also make the person have more financial resources to build a good house. this is also a solution that most people in my country have adopted, since the banks in my country have been charging high interest rates and making people pay 25 years

icalical

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In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs, while I am paying mortgage, buying piece of land in some village remote -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

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Quote from: flyingcarpet on June 22, 2023, 02:58:16 AM

I have been debating about it with couple of my colleagues whether stay on rent or buy a property.

Let's assume, you are well capable enough to buy a new property through bank loan. Your income supports the mortgage payment so banks are willing to lend you money.

Let's have the discussion.
If what is meant is buying property with a loan from a bank, well, this will depend on how each individual is towards the bank itself.
To be honest, I never wanted to do this, I even registered and chose a unit to buy a house with a loan from a bank (in my country, it's called KPR).
But, fortunately, it failed and I'm very grateful for that. Because basically, buying a house with a bank loan always raises pros and cons. After it is calculated, if the total amount is added up to the end, then what happens is that the money I spent to buy a house with a bank loan has swelled more than 3 times as much. This is crazy, the bank interest for that matter is very high here.

Because of that, since then, I decided to just rent a house first while doing various things to collect money. Even now I still do it. But here I also have to have certain targets and good financial management to achieve that desire. Because it is undeniable that more and more, property prices will also increase.

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