Renting vs Home Ownership

[Nebulous]

What are you currently doing? Renting or owning? What are the pro's and con's of each?


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I wished I owned a home but I dont think I will ever be able to do that unless I marry someone with good credit and a good job. There is many times where I have been thankful that I didnt own the house I lived in as sometimes things can go wrong and can end up costing the owner hundreds to thousands of dollars. Also I prefer living somewhere where they have someone do the landscaping and upkeep of the property. Not to mention not having to pay property taxes.

 

[Jordan]

I'm not able to answer the question as I have moved back in with my parents when I moved back to Ontario.
However, I can still put some input regarding prices

I'm currently saving up for a home. I do not want to rent, as the prices to rent a very small 1 bedroom apartment with barely any living space is about the same cost of a monthly mortgage payment on owning your own 3 floor, 3 bedroom, 2 bathroom home. You tell me which is the better option xD

(At least around here that is)

 

[azrmacc]

I'm currently renting an apartment near university, and by near I mean roughly a 40 minute commute. If I was still at dad's place it'd take more than an hour, which is not good for me who loves sleep so much. I can't really own a house right now, you see. I'd have to wait until I have a job on my own so I can save up. Plus, it would depend on where I would work if I'm ever going to find a place to settle.

Renting takes up your money and gets you nowhere. In the end, that house is not yours, and if you die, no one can inherit it. I'd like to have my own house, and pass it on to my future children when I'm nearing my time. That way, if they choose to stay there then it'd be all theirs, and they could also sell it or rent it out if they plan to live somewhere else.

 

[Muthoni]

Right now, I am willing to do all the work that would be required when someone owns a home. I am renting an apartment that has very thin walls. My radio has to be on at all times because I have an insane neighbor. She talks at my door and plays her music loud enough to wake the long dead. Paying rent every month is a great responsibility especially when the flow of money is limited. Give me a home of my own on any given day.

 

[polgara]

If you have a limited income, Muthoni, you'll find home ownership difficult. There is always something that requires more money when you own your own home. There are taxes and insurances, of course, and those can be hard. Then there are the almost constant repairs and maintenance that you have to keep up with. Those hassles can be overwhelming, especially with limited funds.

 

[primalclaws1974]

I have lived in the same townhome for seven years. For the last three I have talked to landlord about thinking of moving. He's a good guy, so he talked to me about the benefits vs. the things I might not have considered. For me, I basically live in a small home already. My water and garbage are paid. I have a washer and dryer provided. The lawn, sidewalk, and lot are all taken care of for me. In a house, for about the same payment, I would have a larger energy bill, more bills, and more work to do. As you said, all repairs come from me. I would love to have a house, but I don't see it happening soon.

 

[Peachdejour]

My boyfriend and I weighed these options last year and dove in and bought a home. We live in an area where buying a home is just much cheaper than paying rent because the schools are so good. Plus, we needed a place that we could customize freely with my diseases being unpredictable and I wanted gardens. He is a good investor and had good credit. We took the plunge and its be a good decision for us. I think every situation is different. We knew we wanted pets and maybe wanted another child also. I might also add a service dog to the family so we needed to have a place that was ours and no landlords.

 

[Michele Lovejoy]

We currently rent with the option to buy. Our landlord is not hard to get along with. We do live in a large house with 10 acres of land though. We have to keep the yard maintained and any small things around the house hubby can fix. If its gonna cost major money we let the owners know and they take care of it. We did put in tile in the kitchen and bathrooms last year as well as putting hard wood down in exchange for taking the cost of supplies and labor off of the rent. So ours is not necessarily a "normal" situation.

I have owned before and its a pain because all of the upkeep is on you. If something breaks you have to replace it yourself and God help you if the warranty has ran out. Don't even get me started on the taxes!

 

[porterjack]

I own

rent is money wasted, get a mortgage - easy these days

 

[Lucy]

We rent, and are currently despairing of ever getting a mortgage. Generally I'm not bothered by it, but I would really love to be able to live in a place where a) there were never any 'inspections' by the agency (feels so intrusive! We've got one coming up at the end of this month and I'm dreading it a bit) and b) we could do some interior decorating - I'd love to be able to paint the walls, put up shelves, put up new curtains without having to store the old ones away, etc. And, of course, it's unreliable as well - rent could go up, the landlord could decide to take the place back, whatever. This hasn't happened to us yet and we've been renting for quite a while now, but it's always at the back of my mind. It'd be lovely to live in a place that felt 100% ours.
Ultimately, though, it's not that important. We're lucky to have a roof over our heads. We live in a pretty expensive area, and if we moved elsewhere we could definitely afford to buy, but we stay here and rent because as great as it'd be to have our own place, there are more important things.

 

[jartist]

Rent versus own is a really variable thing. Depending on the area, affordability of mortgages, and your plans and capacity for doing upkeep. Mostly I am of the opinion that renting is inherently unstable because you are at the mercy of the landlord. If the landlord is a good, responsible person there is no issue, but if the landlord is a jerk, you can have problems. Even if the landlord is a good one, there is no guarantee that they won't get into a financial problem or have a health issue and sell, leaving you stuck with another landlord who may not be interested in keeping the existing tenant. I have had friends who have had to move with the minimum notice because the landlord had a family member that needed housing.

On the other side there is the fact that renting absolves you of a lot of the responsibility that comes with owning. There is less to deal with if you decide to move. If you want to live in the city it is usually much easier to find a rental that something you can afford to buy.

 

[The Man]

When buying we usually pay about double when said and done... due to interest.
Upkeep and maintenance is now your baby.
When it is finally paid for..it is time to sink more money into it if it already hasnt been done.
Now toss in insurance over those years...add total spent for all upkeep...house payments and insurance...verses straight rent.
Ok so now you own it..you still have to keep it up and pay property tax and insure it..when averaged out it is approaching rent prices.
If you have have the money then buying is the for sure win....when you dont you pay around double for the home..with that and upkeep property tax and insurance it often comes out to a larger expense than renting.
Double price due to interest.
Property tax
Insurance.
Now about triple.
Upkeep also has to be added on as well.
So a 150,thousand dollar house is about 450 thousand dollars
450 thousand dollars will pay 650 dollar a month rent for 58 years.

Now if you have the money to purchase outright...you win.
You live in it keeping most of the upkeep out of the equation for as long as possible then sell it ...the right sucker will buy.
It all comes down to if you have the money to buy outright or not.

 

[Twinsmommy31]

I have rented and now I own. I have to say that there is a lot of upkeep, taxes, and HOA fees to worry about with purchasing a home. On the surface it may seem like it is a bad idea to buy. I feel like I have invested into a nice piece of property. When I rented, I felt every month that the money was going down the drain. When renting, there is no guarantee that you can stay and the prices seem to climb every year.

 

[missbishi]

I bought a house 11 years ago and it's like a millstone around my neck. When I rented, I just paid for the utilities. Repairs, yardwork, decoration and the garden were all taken care of by the landlord. Now I am responsible for it all. I can't just pack up and move like I could when I rented either. Don't get me wrong, I am not ungrateful for my house but owning a home brings so many extra responsibilities.

 

[sidney]

I have never moved out yet of my parent's home, but I do plan to in the future. When I move out, I will choose the cheapest studio-type apartment there is, or even just a bedspacer to save up on as much money as possible. Because I feel like if it's not rent-to-own, then you're just throwing your money away.

 

[Lushlala]

I am currently renting a nice apartment in a safe place where we have security at the gate, and the grounds are maintained. However, I can't help but think that the money I'm paying towards rent could be best used towards a mortgage for my own house. I feel like I'm just wasting money and throwing it down the drain. As soon as I can afford it, I'm definitely getting a house of my own. I see where people are coming from RE maintenance expenses, but I'd rather that than finance someone else's mortgage

 

[Baldeagle]

I have always rented. Sure, I would like to own a home, and hopefully one day I will. But buying a house is a big commitment, which can turn into a curse if you aren't prepared. I personally never go into debt for anything, and that includes a house. So given that, it will be awhile before I own a home.

 

[Rhodolite]

Owning is nice if you have a very stable income and if it's a new house. Otherwise buying a home is a pain in the neck since there's so many things that go wrong after a while. Plumbing, electric, roof replacement, ect. Not only that but there's utilities, mortgage, and property taxes to take into account. One way to own a home on the cheap would be to purchase from a foreclosure sale, bank sale or state seized property. Even then you might want to do a thorough investigation to see if the house is worth the cost of repair. Some houses will have asbestos and were at one point drug houses, so there's that to take into account as well. Even if you get it on the cheap, there's a reason why it's on the cheap, there's usually lots of work that has to be done, but if you're willing to do it, then it's better than pulling a 200k mortgage.

Renting has some advantages like not having to deal with maintenance but it's not as lenient as owning. Either way both options are tough because with rentals nothing's really guaranteed and there's more slum lords than good landlords.

I mean if you look at it, renting and owning are not that different. Even owning a house, you're still 'leasing' from the bank until you pay off your loan on top of paying property taxes. If you default on your loan then you're left with nothing, despite paying 15 years into it. In the end it boils down to how convenient is it for you due to your lifestyle? I'm currently stuck with renting because I move every 2 years on average so owning would be silly on my part.

 

[LitoLawless]

I think owning a home is a dream of anyone that wants to live on their own. Renting is nice but it always comes with some limitations of some sort. I want the freedom to REALLY do anything I want in my home

 

[The Man]

I bought a house 11 years ago and it's like a millstone around my neck. When I rented, I just paid for the utilities. Repairs, yardwork, decoration and the garden were all taken care of by the landlord. Now I am responsible for it all. I can't just pack up and move like I could when I rented either. Don't get me wrong, I am not ungrateful for my house but owning a home brings so many extra responsibilities.

Very good point in regard to not being able to just move at will