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Topic: Rent or buy real estate - let's have a debate - page 9. (Read 1323 times)

sr. member
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House rent is paid in full debit. So if you can buy land and build a house without paying house rent, you will save the amount of money you used to spend on house rent every month, and if you can build a little bigger house, you will be living in your own house. You can rent out your house so that you can get certain amount from house rent every month which will play a big role in increasing your future savings. I think every renter has an idea of when they will be able to own a house because no one wants to pay someone a certain amount every month. So I personally think that building your own house is much better than renting a house.
sr. member
Activity: 1638
Merit: 330
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I would rather rent a house than take out a loan through a mortgage. Renting allows you to avoid the financial burden of high-interest bank loans and offers flexibility in choosing properties strategically located to save time and fit your lifestyle. your. Furthermore, if you decide to buy a home, buying it with cash can be a wise financial decision. This will avoid mortgage-related interest, save you money in the long run, and potentially give you a higher return on investment.

The advice you give does sound wise enough for those who still don't own a property like a house, but there is one more solution that might also be wiser if someone can't buy a house in cash. Those who want to buy a house but don't have enough money for a house unit can also make a way with a home developer by paying it off every month.

This of course will not be related to the bank because the home developer himself will handle this as long as there is a clearer agreement from the buyer. However, if the buyer feels that this is quite a burden, then the solution to renting a house can also be used by those who don't own a house, even though the level of burden is not much different even though the rental fee is only considered once a year.
Making an agreement with a developer is not that easy, no developer wants to accept monthly payments except with a large initial amount or linked to bank credit.
if you have a steady job I prefer to buy even if it's on credit because renting is a waste especially since home is the most important place in life (a must have) and also the price is increasing every year.
Buying on credit is a little expensive because there is interest, but when compared to renting for the same year, the results will be more profitable buying on credit, that's an advantage in the future, so it's worth thinking about.
hero member
Activity: 910
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I would rather rent a house than take out a loan through a mortgage. Renting allows you to avoid the financial burden of high-interest bank loans and offers flexibility in choosing properties strategically located to save time and fit your lifestyle. your. Furthermore, if you decide to buy a home, buying it with cash can be a wise financial decision. This will avoid mortgage-related interest, save you money in the long run, and potentially give you a higher return on investment.

The advice you give does sound wise enough for those who still don't own a property like a house, but there is one more solution that might also be wiser if someone can't buy a house in cash. Those who want to buy a house but don't have enough money for a house unit can also make a way with a home developer by paying it off every month.

This of course will not be related to the bank because the home developer himself will handle this as long as there is a clearer agreement from the buyer. However, if the buyer feels that this is quite a burden, then the solution to renting a house can also be used by those who don't own a house, even though the level of burden is not much different even though the rental fee is only considered once a year.
hero member
Activity: 2590
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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?

Buying a property via bank financing would always be better as the properties are becoming more and more expensive as years passed by, so it would always be better to buy it as early as possible. Though there are certain things to consider before taking a loan. Do you have stable job? Does the nature of your job offers constant promotions? Do you still have enough money left after you pay for the mortgage? These are just some basic things to consider before you sign that paper and take the loan.
No matter how long the term is as long as it is going to be your property once you paid it in full is always better than just renting a space.
sr. member
Activity: 1876
Merit: 370
I would rather rent a house than take out a loan through a mortgage. Renting allows you to avoid the financial burden of high-interest bank loans and offers flexibility in choosing properties strategically located to save time and fit your lifestyle. your. Furthermore, if you decide to buy a home, buying it with cash can be a wise financial decision. This will avoid mortgage-related interest, save you money in the long run, and potentially give you a higher return on investment.
Depends on what would work on you better. If you cannot pull out huge amount to buy your own house, then you'd be left no other option but to rent. Indeed you don't need to go far from what you can provide.  If you will be able to buy a house then you'd be safe from monthly rent, that you can save and spend on other things. But as we all know, not everyone has the capability to do so. The other option is to rent; which would give you or should give you an enough space to save up and buy your own afterwards. Conflict may arise if you are not doing anything to reach your goal. Perhaps you are renting to save money atleast for now, but if you aren't doing so, then your goal won't be achieve. What's more practical is to know what would best work on your lifestyle and capacity.
full member
Activity: 826
Merit: 104
I would rather rent a house than take out a loan through a mortgage. Renting allows you to avoid the financial burden of high-interest bank loans and offers flexibility in choosing properties strategically located to save time and fit your lifestyle. your. Furthermore, if you decide to buy a home, buying it with cash can be a wise financial decision. This will avoid mortgage-related interest, save you money in the long run, and potentially give you a higher return on investment.
full member
Activity: 406
Merit: 109
Renting is expensive if you compute the accumulated expense you'll have. Having your own property might be expensive at first but it's more practical over time. If it's possible with the money you have or the amount you can loan, it's better to purchase a property and make it available for renting. Then you can use the money you earn from it to pay for the remaining balance on your bought property. For me, it's okay to get a loan to buy a property if it'll be used to earn income. Because it's more expensive to get a loan to buy something that won't bring you income. Maybe after some time, you can save up enough money from that passive income to buy another property.
member
Activity: 130
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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?
The decision should be in line with your financial goals, lifestyle and personal circumstances. Yes, owning a house is prestigious and comfortable, but are you ready for maintenance, repairs, taxations and other responsibilities that comes with owning a house?
Nevertheless, what is your financial strength? Does your income constantly support the mortgage payment? If so, buying a property can be a good longterm investment.
hero member
Activity: 2002
Merit: 633
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I believe that a 15% yearly increase is extravagant and not realistic. It might be possible after three years but certainly not after one, although this doesn't change the fact that owning a house is much better than renting.

But sometimes we don't understand what some people think. Especially if they can generate wealth passively, wasting money is their hobby, while the working class will see it from another perspective. Besides that, real setate is one of the investment diversifications which can be said to return slower than some other instruments.
Buying or renting is not up for debate. One may even have a collection of properties for sale and live in a rented house in the same area, while some may even still live with their parents.
legendary
Activity: 1330
Merit: 1089
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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?

Buying the property is the best option especially since you have the advantage of being able to get under a payment plan. If you continue to stay in a rented place with the rising cost of things, It will difficult to be able to afford getting a property later and paying in full because  the cost for a property is increasing as well as your rent is.

A payment plan can keep you committed for the required duration until the entire loan is settled.

There are many people who have gotten property through this way and have settled the loan and now have full ownership, you will not be the first.
sr. member
Activity: 1260
Merit: 393
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What if I ask you back, when your financial condition is sufficient to afford a car, will you buy a car or rent it?
Buying has full ownership of the property you bought, you can rent out your property if it is not used to make extra money. While the property that you are renting does not fully belong to you, during the rental period the property is still yours, then you will leave the rental place when you do not continue the lease.
I prefer to buy rather than rent, even though the house or car I buy looks simple, I am the owner of the property.
hero member
Activity: 1624
Merit: 624
Quote
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?

What's the better option for you and why?

I would prefer the buy option if we assume that I have a budget to pay advance payment. The reason for this is that when renting and buying a house is compared, long-term loan installments are close to or slightly higher than the rental price. Renting a house is only a solution to solve the housing problem and a permanent property is not obtained in case of leaving the house. However, buying a house in installments means having an asset after the debt is completed. Of course, the option to buy may be a bit more costly in the debt payment process compared to the option to rent a house but as I mentioned having an asset after the debt is completed will be a great advantage. Finally, I would like to add a quote that I use frequently on this subject;

"I'm not rich enough to rent a house but I'm poor enough to buy a house."
hero member
Activity: 504
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Why buy a house using bank loan? I'd rather pay it cash to save money as much as possible.


Not every state economic system would let you buy a house without bank loan just using cash. State authorities don’t like cash, because it is not transparent. They don’t know where you got it and how are you going to spend it. Moreover bank loans create a basis for the economy of the country, they provide money circulation and stimulate the economy. For the state, this is much more profitable than if everyone paid in cash and did not apply for loans.
hero member
Activity: 1582
Merit: 758
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?

This changes everything, I was going for rented apartment but when I saw the rent increasing by 15% yearly I got discouraged. If I rent an apartment and it keeps on increasing that means that apartment is a liability to me as it's an expense to me but when I buy that house and it becomes my own and keeps on increasing by 10% owing to the development works then that house becomes an asset.

Buying the house when I have the financial strength to do so will be the best option because after using the house I can always sell and still profits from that as well. If the situation was that nothing happens and there's no increase in rent then I'll rent an apartment become I love traveling.
I believe that a 15% yearly increase is extravagant and not realistic. It might be possible after three years but certainly not after one, although this doesn't change the fact that owning a house is much better than renting.

Personally, there are quite a few parameters to take into account, such as occupation, age, country and place of residence, financial status, and possibly a few more that I've forgotten. Both options have benefits and drawbacks, but owning is ultimately the best solution because renting is practically an inevitable waste of money. You're spending money for your whole lifetime, and in the end, you're not owning anything that you can pass on, rent, or sell. Even if you change places of residence, renting provides a steady source of passive income, and due to the increasing demand for housing, it's almost guaranteed.

The issue is that taking a loan isn't as easy as it sounds. It's a financial burden for over 20 or even 30 years, in which time there's no guarantee that you'll be able to support to pay your mortgage. Thus, especially for someone who's young and just starting out, it's a huge risk to be burdened with a huge debt.
sr. member
Activity: 2324
Merit: 454
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?

Why buy a house using bank loan? I'd rather pay it cash to save money as much as possible.

Having your own place is much cheaper in the long run, no hassle, and you can sleep peacefully at night knowing you don't need to pay rent anymore. Renting is also good if you're still saving some money to buy your own house in the future, but in the long run, I don't think it is a good idea especially if you're not that rich kind of person.

That's only my opinion based on my experience here in our country, I guess the choices would still depends on which country you are from.
hero member
Activity: 2520
Merit: 783
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?


In my own opinion there nothing to debate this topic because this all depends on a persons need.

We know how expensive the real estate assets on business hub cities compare to province so much better if you rent since you can enjoy all of your time since you will not get drained to travel long hours for you to get home.

You can also buy house and lot even if your budget is tight but expect it will be on province and not near to your workplace. so try to decide depends on your needs since buying an asset is somehow a big obligation to take.
legendary
Activity: 3122
Merit: 1147
For me, there's no debate on the issue. Buying real estate is always better than renting. I can list my own reasons. First off, it will be yours. That you won't be renting forever is enough reason for me to favor buying your own house.

I was actually happy when I read the book The Richest Man in Babylon and found out that one of the tips mentioned was to "own your home." I couldn't agree more.

You can renovate it freely, adjust the design later on according to your own taste and needs, use it as a collateral for a loan, sell it, and so on. You can do whatever you want with it. It is frustrating to always defer to your landlord on all decisions about the place you're living in.

Moreover, with inflation, what you will be paying in the years to come for your own house will actually be worth less.
I have to agree with this. Buying a property is always an advantage than renting the whole time as your money will only go into waste, knowing in the end you don’t own anything. That is why if you have enough funds to finance buying a real estate, then never hesitate to stick to your plan. It could make you spend huge amount today but after a year or two, if you consider that property to be a source for business, then it’s going to give you high investment returns that may be 10x or 20x from your investment capital.
hero member
Activity: 616
Merit: 749
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?

This changes everything, I was going for rented apartment but when I saw the rent increasing by 15% yearly I got discouraged. If I rent an apartment and it keeps on increasing that means that apartment is a liability to me as it's an expense to me but when I buy that house and it becomes my own and keeps on increasing by 10% owing to the development works then that house becomes an asset.

Buying the house when I have the financial strength to do so will be the best option because after using the house I can always sell and still profits from that as well. If the situation was that nothing happens and there's no increase in rent then I'll rent an apartment become I love traveling.
hero member
Activity: 630
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With the situation described by the OP, of course buying property is better. even with a loan from the bank. but as long as we are able to repay bank bills. then i guess it will be ok. at least property prices will continue to increase. especially if it is in a strategic area. But this is probably only from my point of view. I don't have much experience with this. but renting is one thing I always avoid when it comes to housing. because the money we pay every month can never make the living space we rent ours someday. and if there is no money to buy it, you can also repay the house and other alternative ways.

But this is only about residential property. but if the property is of another type I have a different and also different view.
legendary
Activity: 2282
Merit: 3014
Anyone who just comes out and automatically says you should always own instead of renting should immediately be disqualified as part of any sort of logical, educational discussion , because that type of thinking is straight up wrong.

There's quite a few articles out on the net that discuss the factors of buying versus selling.  Sometimes it's not just so much what one person can afford, but it's also very much about the location.  In some cities/states/countries it simply makes more sense to rent than buy, even if you've got the money to purchase.  


"Ramit Sethi, self-made millionaire and star of Netflix’s “How to Get Rich,” says his “most controversial money opinion” is that homeownership is overrated".

I’m tired of the blind obsession with homeownership in America,” Sethi tells CNBC Make It.
 - https://www.cnbc.com/2023/05/02/ramit-sethi-why-renting-can-be-better-than-owning-a-home.html
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