Bodyflight.Net 0 #1 September 3, 2004 What is/was the deciding factor for you? I'm wrestling with the decision now. Quote Share this post Link to post Share on other sites
adamjenner 0 #2 September 3, 2004 rent...i'm too young to own a house. and if i wanna move somewhere i stop paying rent, then i won't have to go through the trouble of selling a house or anything Quote Share this post Link to post Share on other sites
Jib 0 #3 September 3, 2004 Fear of rising interest rates and property values. -------------------------------------------------- the depth of his depravity sickens me. -- Jerry Falwell, People v. Larry Flynt Quote Share this post Link to post Share on other sites
Conundrum 1 #4 September 3, 2004 Own, renting is just throwing money away in the long run. With a house, over time the mortgage balance decreases and equity builds. With an apartment or something you are renting, you gain nothing over time, except maybe a higher rent. Quote Share this post Link to post Share on other sites
jazzjumper 0 #5 September 3, 2004 Good question. I own, and have owned a few before this one. The overiding factor was the economy of the decision. There are many websites that offer some good hints on a rent versus buy decision. However, it is a big decision. If you have no savings and you live month to month, and you aren't settled in the location you think you'll be for 5 years, renting is probably a wiser decision. If you have a steady income, a little savings after a down payment (for the inevitable costs associated with home ownership), then you might try researching "rent vs buy" on google. There will be tons of links to help you out. Good luck! No matter how good she looks, someone, somewhere is sick of her shit! Quote Share this post Link to post Share on other sites
mirochristie 0 #6 September 3, 2004 Own! because (for me), buy the time you move from where you are renting, probably you`ve payed a whole lote more! (in rent, electricity, water, etc). And if you own, you can do whatever you want with the place.LiquidSky @(^_^)@ Quote Share this post Link to post Share on other sites
Jeth 0 #7 September 3, 2004 Owning was definitely the way to go for me. But I live in an area with really high rents. I got a much bigger, nicer place for way less than a rental would cost. Not to mention I wanted to build up some equity. Also not to mention when interest rates fall you get a cheaper payment. When you rent your landlord gets that benefit and I'm sure doesn't lower your rent. Ya, it is a pain selling and buying, but in the long run it brings many benefits like equity, tax breaks, home improvement practice, and decorating control. Also the fact that you never have to move unless you want to. I'm definitely happy with being a home owner. "At 13,000 feet nothing else matters." PFRX!!!!! Team Funnel #174, Sunshine kisspass #109 My Jump Site Quote Share this post Link to post Share on other sites
Bodyflight.Net 0 #8 September 3, 2004 Quoteyou might try researching "rent vs buy" on google. holy cow...this is what I found: On an annual basis, buying will cost $4890 less than renting I'm petrified those "inevitable costs" will be insurmountable... Quote Share this post Link to post Share on other sites
jazzjumper 0 #9 September 3, 2004 Okay, lets talk inevitable costs. Furnace/AC - needs to be less that 10 years old and inspected. Replacement cost 1200-2200 Roof - same deal... cost can be 1700-5000 depending on the size style. Water Heater - $250. Refrigerator - 700 Washer/Dryer - 1000 Now, the idea is to use a reputable realtor, and get a quality home inspection. Walk around with the inspector as well, and make certain that you Getting a first year home warrenty for appliances is an option, mine cost me $375, and had a $100 deductable. I used it once, on the furnance and A/C. Saved me about $1200. Bottom line, home ownership is a big responsibility. Search and choose wisely, bid a little lower, and make certain you have some in savings to cushion the effect of problems. Also, know that things like curtains, etc will put a big dent in to moving in as well. No matter how good she looks, someone, somewhere is sick of her shit! Quote Share this post Link to post Share on other sites
PhillyKev 0 #10 September 3, 2004 QuoteOwn, renting is just throwing money away in the long run. Not always true. About every 6 months I run the numbers and it makes more sense for me to rent in the long run. There are a bunch of sites with formulas out there to work it out. But basically it depends on property taxes, closing costs, interest rates, your tax bracket and if you itemize or not, the real estate market and what you expect it to do, how long you plan to stay in that house without moving, home owners assn. fees, sewer, garbage, etc. that you don't pay with a rental, home owner's insurance, maintenance and repairs, the list goes on. I live where real estate has already peeked and is currently over priced and can't commit to living somewhere for more than 3-5 years. So, after figuring in all of the above, at the end of 5 years, I would have spent more money on owning house than renting. It doesn't tip the scales toward owning until 7 years out. Quote Share this post Link to post Share on other sites
DrewEckhardt 0 #11 September 3, 2004 QuoteWhat is/was the deciding factor for you? I'm wrestling with the decision now. Play with a calculator using property values in your area. Consider what the historic appreciation has been, taxes, and other local costs. I bought my first home 5 years ago the idea being that the monthly cost was the same as renting, I'd have a big gain in value for a small investment (a nice place to live, no vacant lots, and growth capped at 2% make for high property values) and my living expenses will eventually drop dramatically (my mortgage will be paid off in 13.5 years). Paid about $10K at closing for the down-payment and closing costs. My mortgage (now fixed 15 year - longer fixed rate loans and ARMs would be less) + taxes + HOA fees + insurance + appliance replacements - tax deductions are less than I could rent the same property for. When I refinanced 1.5 years ago it appraised for $90K more than I paid and property values haven't gone down since then. Could have moved after a year and still come out ahead financially. Quote Share this post Link to post Share on other sites
Nightingale 0 #12 September 3, 2004 unless you really move a lot, buy. you're at least building equity with your money, and unless the market's crazy high when you buy, you can probably sell for as much or more than you paid for it. Plus, a home loan builds your credit, while renting doesn't. Quote Share this post Link to post Share on other sites
Squeak 17 #13 September 4, 2004 QuoteWhat is/was the deciding factor for you? I'm wrestling with the decision now. We own the house I livein and we are paying off 2 rental properties. What I'd like to do is sell them all off and travel the world skydivingHowever my wife (thankfully) thinks it's better to plan for our future If i actually end up having a future it will be nice not having to rely on welfare pensions to liveWhen I'm OLD Like Dr J. Kallend or Bill V N I may sell up and travelYou are not now, nor will you ever be, good enough to not die in this sport (Sparky) My Life ROCKS! How's yours doing? Quote Share this post Link to post Share on other sites
kelpdiver 2 #14 September 4, 2004 QuoteOwn, renting is just throwing money away in the long run. With a house, over time the mortgage balance decreases and equity builds. With an apartment or something you are renting, you gain nothing over time, except maybe a higher rent. You can't do the math without figuring opportunity costs. In particular, a single person buying a 1 bedroom condo ends up in bad shape if they shack up with a partner in 2 years and want a bigger place. For a couple I think the reasons to buy are much stronger. For a single, don't see it. I would have a lot less freedoms of choice had I bought a place in 2000. The Bay Area has been in a protracted real estate "bubble" for years now. Couple that with the fairly high rental vacancy rate, and the delta between renting and buying is huge. Quote Share this post Link to post Share on other sites
spectrefish 0 #15 September 4, 2004 own.....that way you can say.......If I don't like that wall, I'll just tear it down. You are making an investment by buying a house. You can always sell it for more than you bought it, unless you trash the place. I just bought a house and I have no regrets! umop ap!sdn w,I Quote Share this post Link to post Share on other sites
SpeedRacer 1 #16 September 4, 2004 own...it makes sense for me. I got in here at the right time, and real estate prices are still going up. People have already mentioned the financial aspects of it. But there is also (at least for me) a sense of satisfaction in owning my home that I couldn't put a price tag on. Part of the decision was psychological. Speed Racer -------------------------------------------------- Quote Share this post Link to post Share on other sites
kelpdiver 2 #17 September 4, 2004 Quote You are making an investment by buying a house. You can always sell it for more than you bought it, unless you trash the place. I just bought a house and I have no regrets! In 5 years, almost certainly. Next year, no guarantees, esp with the 6% cost to sell. Quote Share this post Link to post Share on other sites
