why is it better to own your home than rent?

Question

its the oldest real estate proverb. Its better to own your home than to rent. you are throwing your money away if you rent. you are making someone else rich. do you agree?

Answer 1

It really depends on the circumstances of the individual.
Also, what you get for and how much the taxes are in an area.
I have owned and sold many homes... to make the $$$.
Right now it is a good time to rent in many markets unless you plan to buy something and stay there for a long time.
The market is starting to slide. The good time to buy was a year ago.

Owning does give you a lot of satisfaction and security but it comes with its drawbacks too.
You can't have the landlord haul in new appliances for free when yours croak.

If you rent, you have a lot more freedom and flexibility.

It equals out in the end.

Answer 2

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Answer 3

I think it's better to rent. No down payment other than security deposit, no closing costs, no repairs to make, no paying interest on mortgage which will more than likely make your monthly payments higher each month than if you were to rent. Also, you can pick up and leave any time (just get someone to take over your lease), and any equity you build in the property is dead money. It's not earning any interest. Plus, prices are very high right now. If you have a family it's a different story because you need a house, and renting a house, for the most part, is too damn expensive. But if you're single and live alone, it's a no brainer to rent than to buy a one or two bedroom condo.

Answer 4

to answer this takes alot currently where I live in southern california it is techically better to rent. They way to come to this conclusion is to compair rent to a comperable place (house, condo, ect.) Assume a $0 down payment because the money put down on a house does not make money for you. If you have decent credit it will run about $650 for ever $100,000 borrowed. Granted interest is tax deductable so out of every $650 in payment you will get back about $150 depending on your tax bracket. SO for every $100,000 it will cost you nearly $500 give or take. This $500 does not include homeowners insurance and any maintance that is needed. Where I live I can either buy a 2 bed 2 bath house for about $550,000 which means out of pocket would be ruffly $2750 after taking account for deductions but does not include maintance and insurance. To rent that house (similar size and area) would be $2200. A savings of at least $500 a month. Some will say that by renting I am not building any equity but after 36 months of payments you will have made nearly $120,000 in payments and only $20,000 is in equity. Now you will have those that say houses appriate and never go down and all that but buying a home hoping that home prices go up is an "investment" at best, and a home is not an "investment" for the sole reson you need somewhere to live. Your house goes up in value and like wise so does the house next door and so on and so forth, so you sell and make a ton of cash, next set buy another house and now you buy a house with the more than likely same price increase as the one you sold so you actually didn't make any money. If the house you sell is a rental, vacation or second home of some kind then its a totally different story.

Getting back to the whole $20,000 in equity on $120,000 in payments.... If you would have just put the difference between rent and a house payment in a simple MM account like ING or paypal paying almost 5% will bring you to nearly $20,000.

All of theses number and explainations should come with tons of criticisums..... because although the numbers don't lie and neither do the concrete explainations but there is nothing like owning your own home. It does something to the psycology of a person more pride and sense of community. Granted if you get in over your head buying ahome can be a nightmare but its not call the "American Dream" for nothing and if a person can afford it and knows both sides and knows what they will be getting into then by all means one should buy a house. Just beware of used car salesmen turned realitors and brokers selling hope and dreams.

Answer 5

I own my 1 primary residences and 2 vacation houses 5 3 unit multi famil's and 3 24 unit arpartment building. Owning is FAR better than renting can't u tell.! I own a total of 87 units multiple that by on average i get $1,200 a month in rent from each there what i make a month is times 12 months there is the year. I clear about half that amount a year I plan to build another arpartment building soon

Answer 6

Rent-To-Own Homes - http://RentToOwnHome.uzaev.com/?XsTz

Answer 7

I agree. By paying a mortage you are building equity. If you decied to and you should sell you will get that money back and then some. If you rent for 10 years @ 1000 bux a month that is $120,000 that you will never see again.

Answer 8

It is YOURS - and your not paying someONE else's mortgage.....You are building equity - for a rainy day - - kids graduation - a vacation etc. YOU can Paint it the color YOU want...You can have a pet if you want, you can have a party if you want, you can decorate YOUR home the way you want to... IT IS YOUR'S....and the lenders

You will take more Pride in YOUR home.

Plus have the tax write off at the end of the year. You will get a 1099 INT of the interest you paid, to take off on your taxes (on the 1040 form).

Answer 9

Equity + Tax Break + Long Term Investment = Home

Answer 10

I definitely agree!!

We own our home and get nice tax breaks at the end of the year.

We rent it out now & we get more tax breaks because the home is now a business, so we get a few more tax breaks.

Renting only gives you a roof over your head.