Owning vs. Renting

[Nivek]

Re: Owning vs. Renting

This is true. The value of my condo is going up as well but over the last year I've been thinking about getting out of it since I'm taking losses now. Especially this year, the property tax killed me. It went up from last year by 25% or something like that.

But I'm going to stick through it since that area is growing quickly and expanding.

I was in the same situation during my first year. My property tax was pretty high, but I'm living in one of the fastest growing areas in the city. Another thing to note, there's a lot of fees with being a condo owner. Property taxes, monthly maintenance fees, parking fees, mortgage insurance (if you can't put a down payment of 20%) and land transfer fees. At the end of the day, it's an investment which I know will pay off in the long run.

[mjb2124]

Re: Owning vs. Renting

Buy a house or townhouse/condo. IMO, renting is just throwing money down the drain. You get nothing back from it. Of course, if you plan on moving out of the area 1-2 years, buying might not be for you as you'll have to deal with selling the house before you move.

I bought a townhouse about 6 years ago and while it hasn't gained as much money as Nivek's, I know I can sell it for 30K more than I bought it for (based on identical townhouses in the area). The area I live in is booming and I expect it to get even bigger in the next few years. After that, I'm selling it and moving into a house in the same area.

[Altimus]

Re: Owning vs. Renting

I was in the same situation during my first year. My property tax was pretty high, but I'm living in one of the fastest growing areas in the city. Another thing to note, there's a lot of fees with being a condo owner. Property taxes, monthly maintenance fees, parking fees, mortgage insurance (if you can't put a down payment of 20%) and land transfer fees. At the end of the day, it's an investment which I know will pay off in the long run.

Parkings fees is one thing I don't have to worry about fortunately.

The break down of mine is I bought mine for $165,000. Put about $20,000 of work into it. The current value it is right now is $225,000. Not bad. I want to wait two three more years before selling but I've also had bad luck with renting the place.

I rented to a friend that told me he would live there for a couple years.. ended up screwing me over. Did stuff behind my back and just moved out without any kind of notice.

My current tenant is already 10 days behind payment, I'm going to have to start looking again probably.

Its a great invest if you can weather the storm of losses in the beginning.

[cjonesfan921]

Re: Owning vs. Renting

It's not really throwing money away, wouldn't it be financially a better move to rent, as in RIGHT NOW?

I kind of agree with DE, in that rent now and save up money before buying.

[mjb2124]

Re: Owning vs. Renting

It's not really throwing money away, wouldn't it be financially a better move to rent, as in RIGHT NOW?

I kind of agree with DE, in that rent now and save up money before buying.

Financially better? I don't think so...depends on your situation though. Personally I think someone should only rent if they think their standing in that area isn't going to be long.

IMO, renting is just throwing money away because you'll never get the money back that you pay in rent. Buying a home/condo/townhouse is one of the best investments anyone can make because most homes appreciate in value. You'll often get the money back that you pay in mortgage plus more when the house is sold...even without putting a ton of money into it.

[Altimus]

Re: Owning vs. Renting

It's not really throwing money away, wouldn't it be financially a better move to rent, as in RIGHT NOW?

I kind of agree with DE, in that rent now and save up money before buying.

How is it not? You pay, you live. You move out, you have nothing.

It all depends on the situation but if you plan on living in the area for a while you should be looking into buying something if its within your financial means.

[Nivek]

Re: Owning vs. Renting

It's not really throwing money away, wouldn't it be financially a better move to rent, as in RIGHT NOW?

I kind of agree with DE, in that rent now and save up money before buying.

How is it not throwing your money away? Renting is like giving a stranger money so you can live in a box. Why not own the box? I like EG's analogy, with regards to blockbuster - Why pay $6.99 for two nights, when you can own it for $20?

I understand that some people can't afford to live in a condo and have to rent. I completely understand that, my opinion should reflect those who are considering both. If you can't afford it, then that's a different story.

[cjonesfan921]

Re: Owning vs. Renting

How is it not? You pay, you live. You move out, you have nothing.

It all depends on the situation but if you plan on living in the area for a while you should be looking into buying something if its within your financial means.

Then, say for someone just out of college, you would think it's better to own right away?

[Altimus]

Re: Owning vs. Renting

Then, say for someone just out of college, you would think it's better to own right away?

Depends. Out of college I went and pretty much owned right away.

But if you are deep in school loans, you won't get a loan to buy anything. As I said, if you plan on living in the area for a while and have the financial means to do it, then yes.

[Nivek]

Re: Owning vs. Renting

Then, say for someone just out of college, you would think it's better to own right away?

I did it, but I had a good credit score which allowed me to get a great interest rate on top of being approved for a $200 K mortgage. It's also a great way to help you budget your finances because you're pretty much forced too! There were a couple of instances where I couldn't go on some weekend trips with friends, but that was one of the sacrifices I had to make.

[cjonesfan921]

Re: Owning vs. Renting

Depends. Out of college I went and pretty much owned right away.

But if you are deep in school loans, you won't get a loan to buy anything. As I said, if you plan on living in the area for a while and have the financial means to do it, then yes.

Well, I currently have no loans whatsoever. Then again, I have almost no money saved up. I don't plan on living anywhere else at this point.

[Altimus]

Re: Owning vs. Renting

I did it, but I had a good credit score which allowed me to get a great interest rate on top of being approved for a $200 K mortgage. It's also a great way to help you budget your finances because you're pretty much forced too! There were a couple of instances where I couldn't go on some weekend trips with friends, but that was one of the sacrifices I had to make.

Less fun now equals more fun later. Thats why way I look at it.

[RoyalBoyle78]

Re: Owning vs. Renting

This is something my best friend and I have been arguing about recently.

What are the pro's and con's to each? He's concerned with ROI while I'm more concerned with personal equity.

I can see the argument for both sides but I thought I would get your take on the matter.

EDIT: I'm referring to House vs. Apt.'s. Which would you guys do... own or rent a house... or own or rent an apt./condo?

I pay $1100 to rent my apartment, I I wish I was paying that to own something, so I would say owning better then renting. at the end of the year I would have paid $13,200 for just renting which really sux.

[Altimus]

Re: Owning vs. Renting

Well, I currently have no loans whatsoever. Then again, I have almost no money saved up. I don't plan on living anywhere else at this point.

You live on campus right?

Having no loans is good. Start saving up money and start establishing some kind of credit.

[Double Eights]

Re: Owning vs. Renting

I'm leaning more towards owning now.