Rent vs Buy? Opinion

[xXx]

Which in opinion is better to do rent or buy? Thinking abotu buyign my first home. One parent is saying it is unwise. So I am looking on opinions to help. Thank you

[bluekrissyspikes]

well, i just purchased my first home and i'd probably say buy. just be careful what you are buying. with a rental you don't have to worry about fixing it up or repairing things. buying a home, you have a few extra expenses but the monthly costs go down a bit and the money is invested into the house which you will get most or all of your money back on if you take care of it. renting, you are giving that money to someone else to invest in their future. personally i'd rather invest in my own future than in someone elses. just don't buy a real 'fixer upper' unless you can afford to do the work on it or it will turn into a real money pit.
i am not all that experienced though, just mho.

[MagicFingers]

Here are a few thoughts.

Rent

POSITIVES
Less responsibilities, you usually have no maintenance and up keep, you may or may not have to mow, shovel, no property taxes,
NEGATIVES
Its like burning your money....You spend 500+ a month on rent and in the end you have absolutely nothing to show for it

BUY

POSITIVES
It is yours, you gain equity, you will own it, you have something to show for it, and it could be an investment

NEGATIVES
UPKEEP, extra expenses, taxes, plowing, mowing, shoveling, BIG RESPONSIBILITY

Right now the market is a sellers market not a buyers market so most houses are way way way over priced and even more over priced depending on location so it might not be that your parent is saying it is bad to buy a house but that it is bad to buy a house RIGHT NOW.

[IMHO]

I feel a lot depends on your age. We have owned a home for 41 years. We just recently sold it and are looking to rent an apartment or a condo. At our age i do not mind paying the landlords mortgage as we are certainly in our decling last third of our lives. It gives us the freedom to lock the door and leave for extended periods of time and we have a fixed cost which "agrees" with our pensions. If we were young we would never rent.
As I look back I now feel i should have invested heavily in real estate....it gives you a far better return down the roads than relying on a financial planner who is in it for him/herself. IF YOU are handy you can buy fixer uppers...hang on and rent them '''and sell them for much more 10-15 years later. If you have to pay someone to work on the fixer uppers...I would not bother.
It is a sellers market...our place went for above the asking price and a wonderful allowance for OUR moving out. Those parents are correct(IMHO) in advising to wait a bit and get into the market when the tide tuns to a buyers market. When that tide turns buy 2 and rent one out.

[verotik66]

I would say most houses in town are overpriced right now unless they need some work and even those are up there, it is totally up to you, renting gives you the flexibility to settle in and save more maybe buy something nicer down the road etc..

[Lance1]

NEGATIVES
Its like burning your money....You spend 500+ a month on rent and in the end you have absolutely nothing to show for it

You do have something to show for it by renting, you show you did not freeze to death sleeping on a snowbank in the dead of winter.

[Add]

Was just browsing mls.ca and theres not too much out there reasonable priced right now.

[MagicFingers]

You do have something to show for it by renting, you show you did not freeze to death sleeping on a snowbank in the dead of winter.

LOL I am sorry you are right...

[MagicFingers]

Although if you decide to wait until the market changes and there is a down turn in prices it could be a long wait. 4 years ago when I moved back to town housing prices were considered high then and they have continually gone up. Some times faster than other but they have gone up.

[Lance1]

Also interest rates can not go down any lower,there as low as they dare go right now due to the recession,they can only go up.

We just renewed at 3.7% for ten years. I remember my parents paying 11% in the early 1980,s.

[Bill Nash]

If you are looking at spending a fairly large sum of money to buy, consider building. You can find a lot of information on building at libraries, building suppliers, internet, and the building department at city hall. With some proper study and preparation, you can build your own home for 2/3's the cost of purchasing one at today's prices. You will get peace of mind knowing how it is constructed, and be able to put in personal touches to suit your taste.

Don't be too worried about some aspects you won't be able to do yourself. Hire a contractor for some of the work (foundation, electrical, and masonry), but the rest is definitely doable for anyone.

Good luck in any case, ....

[catena]

Buying real estate is an excellent investment. I purchasedmy first home at the age of 21 and now 20 years later I own a home and 9rentals. The key to success is getting it for the right price. Yes, the marketin the Sault is hot right now but there are still deals out there. Everything Ihave ever bought is worth significantly more than my purchase price. This givesyou an instant boost to your net worth through the equity you create. Find aplace that needs a little work which is mostly cosmetic. Come in really low andthe worst the seller can do is simply say no or counter your offer. I may putfive to ten offers in to get one that is accepted. Fix the home up by painting,installing laminate floor (cheap, easy to install, looks great), change lightfixtures, and things of that nature. Then get the home appraised. Eighty toninety percent of the difference between what you owe and the appraisal is goodas cash should you decide to use the funds to purchase another or one to livein. Interest rates are the lowest of my lifetime right now. I remember when I boughtmy first home the rate was 14.6%. That makes a huge difference in your paymentso, I you buy, lock in the rate as long as possible because they will be goingup soon. If you are renting be very selective who you choose to pick as atenant. There is no shortage of people looking for apartments. When you own ahome all the money you put into it goes into your own pocket as opposed torenting when you are simply paying someone else’s mortgage for them. To me thedecision is clear that owning is the way to go. I hope this way helpful to youand good luck.

[Barry Morris]

If you buy and have to go back to renting, you're not likely to lose much.

Better than regretting the lost opportunity.

[magic mushroom]

buy if you can, always can sell and you have your money back. apartment the money is gone.

[Evangeline]

Buying is better, renting is throwing money away every month. Plus rent is crazy high now, I can't imagine spending $700 or more to live in a 1 bedroom apt and have to put up with having neighbors on all sides.

[Barry Morris]

Downpayments are sometimes hard to save up.

But be sure to talk to several mortgage sources. The banks are one source, but people like NuEra or The Mortgagae Centre might have more options.

I certainly found it so.

[RWGR]

Buying is better, renting is throwing money away every month.

That was the general consensus for a long time. But is it true?



http://online.wsj.com/article/SB1000...pinion_LEADTop

[bluekrissyspikes]

if you have good credit you don't need a deposit and even with credit that was a bit off we only needed 5% down.

[Evangeline]

I think so, as long as you don't buy something overpriced that won't gain any value before it's time to sell. But usually a first home is a "fixer upper" and people don't have that problem.

[IMHO]

I still think it is a matter of what age and stage in life you are at. As we age some of us do not want the responsibilites of a house. The profit made on the house will go along way towards paying rent in our declining years. I do think that young people should get into housing as soon as they can,