4 ms·

Not sure about anywhere else, but where I am (Midwest USA), I can pay $800/mo for a nice 3+ bedroom house, a nice plot of land, 2 car garage, etc in a nice neig

Not sure about anywhere else, but where I am (Midwest USA), I can pay $800/mo for a nice 3+ bedroom house, a nice plot of land, 2 car garage, etc in a nice neighborhood, or I can pay $700 for a 2 bedroom apartment. Sure I'm saving $100 a month, but in the end, the house is worth more and goes back to what was stated earlier. After 30 years you own a house.

refurb 13y ago
Of course location makes a big difference. If you're in a market where the house price to rent ratio is favorable, then it can make sense. Of course, when you sell your house you're on the hook for the 7% commission, plus all maintenance items. The sort of stuff a renter never pays. I'll just say that I ended up renting when all my friends were telling me I was stupid not to buy. Three years later I walked away from my rental after paying $30K total in rent, while my friends ended up losing more than $30K when the price of houses dropped (only 10%). That doesn't even include the mortgage payments they made as well. All in all, they paid twice what I did for a place to live. Also, home owners often forget to include the cost of their down payment. If you put $100K down and your house appreciate 2% per year (which is pretty decent) you're out the extra 3-4% the renter made by keeping that money invested in the market. I think we can agree that owning a house sometimes is a good thing, but it certainly isn't the best financial move for everyone.
- Killswitch 13y ago
  Definitely agree with you. There's pros and there's cons. Just gotta figure out if the pros outweigh the cons for you in your particular circumstance. I am a renter and get the same thing said to me "Why rent when you can buy?!" I don't know if I want to spend the next 30 years living in this area, so that's why I haven't bought yet... Although I am thinking of buying a house in the next year.

refurb 13y ago

Of course location makes a big difference. If you're in a market where the house price to rent ratio is favorable, then it can make sense. Of course, when you sell your house you're on the hook for the 7% commission, plus all maintenance items. The sort of stuff a renter never pays. I'll just say that I ended up renting when all my friends were telling me I was stupid not to buy. Three years later I walked away from my rental after paying $30K total in rent, while my friends ended up losing more than $30K when the price of houses dropped (only 10%). That doesn't even include the mortgage payments they made as well. All in all, they paid twice what I did for a place to live. Also, home owners often forget to include the cost of their down payment. If you put $100K down and your house appreciate 2% per year (which is pretty decent) you're out the extra 3-4% the renter made by keeping that money invested in the market. I think we can agree that owning a house sometimes is a good thing, but it certainly isn't the best financial move for everyone.

Killswitch 13y ago
Definitely agree with you. There's pros and there's cons. Just gotta figure out if the pros outweigh the cons for you in your particular circumstance. I am a renter and get the same thing said to me "Why rent when you can buy?!" I don't know if I want to spend the next 30 years living in this area, so that's why I haven't bought yet... Although I am thinking of buying a house in the next year.