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Better to Rent or Own?

Discussion in 'The Okie Corral' started by XDRoX, Aug 11, 2012.

  1. XDRoX

    XDRoX

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    I was talking to a coworker the other day and he was telling me about an article he just read arguing that it was better to rent than own a house. He said that the article took into account all the taxes and maintenance fees that come with owning a house. Not to mention how expensive houses can be.
    The article apparently did some math and showed how it could be better financially to rent.

    My coworker believes this and he's decided that renting is better for him and said he'll rent for the rest of his life after reading the article.

    I grew up being told it was better to own than rent and so that's been my mindset for as long as I can remember.

    Does anyone here choose to rent? What are your reasons?
     
  2. okie

    okie GT Mayor

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    I rent because I'm not making enough money to afford a house, and houses are sink holes, you sink most your money into them:supergrin:
     

  3. ysr_racer

    ysr_racer

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    I own because I don't want to pay rent the rest of my life. Plus, if anything happens I've always got a place to live.

    I also own a rental property. It's awfully nice of someone else to pay my mortgage.
     
  4. RWBlue

    RWBlue Mr. CISSP, CISA CLM

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    If you run the math on a house that you will be living in.....

    1. If you are willing to live in the minimal house you need to survive. You will be moving ever 5-10 years (or less). Renting is better.

    2. If you want to live in a nice home in a nice neighborhood and plan on living there the rest of your life....you are better off to own.

    3. If you can get someone else to live in your house and pay rent that is greater than the mortgage, insurance and incidental expenses (or close), it is a good investment.
     
  5. Dalton Wayne

    Dalton Wayne Epic mustache Millennium Member

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    I own my house free and clear, it's NOT!! a mobile home it's a real brick & mortar house, Owning a home is a work and a pain in the arse, however I wouldn't have any other way, Just yesterday I nailed a man cave sign on my bedroom door, didn't have to ask permission, won't lose a security deposit it belongs to me!:supergrin:
     
  6. Annoyedgrunt

    Annoyedgrunt Dry Heat my ASS

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    Thing is, every payment towards a house is one payment closer each time to paying it off completely, and one day you won't have ANY payments. Think of how fast your bank account will fatten up without that pesky payment to make every month. Rent money is just gone, there's no such thing as paying off an apartment. I don't know why more people don't seem to realize this simple fact.

    And a thirty year loan doesn't have to take thirty years; if you add extra on the principle every month, you'll save thousands, even tens of thousands on interest, depending how much extra you put into it. We bought our house in '08 on a thirty year loan, and it'll be paid off by 2022.
     
    Last edited: Aug 11, 2012
  7. jtmac

    jtmac Señor Member

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    If it were better to rent a house then no one would be in the business of renting them out.
     
  8. larry_minn

    larry_minn Silver Member Millennium Member

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    As said if only there for few yrs, don't want to "invest" in property.... RENT. If you will stay for while, want more then place to sleep. Where you can "make it yours" and are willing to put in work/$$$ then owning has its advantages.
    Of course location is very important, neighborhood, schools, shopping/ (or for some folks the lack of) :)
    One thing to consider in any lease/rent vs purchase. When you are done what do you own? NOTHING. If you buy house (that you intend to live at least 10 yrs) at end you "own" a dang good chunk of the house so when you sell you get something. (to put into next home)
     
  9. DennisP

    DennisP

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    My Grandfather was a great man, very succussful, pretty well off to say the least, but never owned a house. He perferred to rent because if something broke he would call someone and they would come fix it. After he passed away, my Grandmother bought a Condo outright because money was never an issue.

    This week I got banged for 25oo bucks because the condenser on my AC went out. Needless to say with it being August and Florida I was happy just to gewt it fixed. My Grandfather if he was still alive would have had it fixed for free. In like 18 more years this house will be paid off and I'll have something to show for it but I must admit I miss the stress free life of renting.

    Dennis P.
     
  10. costanza187

    costanza187 I like Macs

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    I own because I got tired of paying outrageous rent. In order to live anywhere decent around here you have to pay a hefty amount of rent. My house payments are considerably cheaper than the rent I used to pay. I also figure once I do pay it off, I can sell it and get my money back...and even if I sell it at a loss...I still won't be out as much as I would have been if I had been paying rent.

    However, owning does have pitfalls.... if something breaks, it is on me to get it fixed. Also, If I get a wild hair to up and move, change jobs whatever...I have this HUGE problem of what to do with my house.

    I bought a house because I figured I was going to be in the area for quite a while, so I would risk it.
     
  11. ysr_racer

    ysr_racer

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    Not to mention, when you rent somebody's house, you may have to move out when they want you to, not when you want to.

    I work with a few guys in their 50's that rent. At this point in their life they will rent until the day they die.

    The day I die my wife, kids, and grandkids will own a nice chunk of $$$$$.
     
  12. Geko45

    Geko45 Smartass Pilot CLM

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    Think about it. If you are renting a house from someone, all those expenses mentioned in the article don't go away. The property owner pays them. He pays the mortgage, insurance and taxes. He pays for maintenance and upkeep and repairing/replacing major appliances if they break. He might even be paying for landscaping and yard work as well depending on the arrangement he has with you.

    And he does all that with your rent and still keeps a percentage as profit for himself. How could that possibly be cheaper for you?

    The only time it makes sense to rent is when you know that you will be moving soon enough where the equity you will build will not be enough to cover transaction costs associated with owning. For instance, if you're going to be someplace for less than five years then closing costs on both the buy and the sell could easily be more than the equity you'll gain while living there.
     
    Last edited: Aug 11, 2012
  13. Carrys

    Carrys Inquisitive

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    Amen sir.

    My home will be paid for in 4 months....................4 months. That's a load off of my mind to be sure, my health isn't in the best shape but if something happens to me the family will never have to worry 'bout a place to live, ever.

    As I'm sure you know, houses can be a kick in the rear to keep up. But what isn't, eh? I would much rather own than rent.....I played that rent game earlier in life and have nothing to show for it now...............nothing I say.:wavey:
     
  14. md2lgyk

    md2lgyk

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    We own our own home. That's because we quite literally built it with our own hands.
     
  15. silentpoet

    silentpoet

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    How many millionaires rent? There is probably a financial lesson in the answer to that question.
     
  16. Hines57

    Hines57 Simple Member

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    I rent my house from the bank and the local government.
     
  17. NeverMore1701

    NeverMore1701 Fear no Evil Platinum Member

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    Well, our mortgage is significantly cheaper than rent on a comparable house would be, so there's that. I'm handy enough to take care of 95% of house problems, so that's not much of a concern. We can do whatever we want to the house without asking permission or worrying about a security deposit. Oh, and we'll own it free and clear in a few more years, we've paid a third of it off in the two years we've been here.
     
  18. Keoking

    Keoking

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    I went to a website a couple years back that went to great lengths to answer this question. It took into account your area, age, income, plans, ... all sorts of stuff. They said that there were plenty of situations and locations where it made much more sense to rent than own, even long term.

    I'm on the fence on the question. The wife and I moved from a 1BR apt to a 3800sq ft home with decent sized yard, and paid off the house in less than 4yrs. We own the house, but the monthly expenses and taxes are nothing to sneeze at, and will only keep going up. She feels an insane pressure to fill the extra space, which also keeps chipping away at the bank roll.
    If we still lived in the 1BR apt, we wouldn't have 2 dogs and probably wouldn't have our 2yo son, but we'd have around an extra $500k in the bank.

    I don't want to keep working until the day I die. :crying:
     
  19. Resqu2

    Resqu2

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    I miss renting for the simple fact that I could sit on the couch and watch someone else mow my yard. A part of my new job involves some mowing then I come home and have to mow my own yard. Did I mention I HATE mowing?
     
  20. NeverMore1701

    NeverMore1701 Fear no Evil Platinum Member

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    Hire someone for $30 a week?