I'm just looking into "possibilities" right now and have never had my own apartment or home, but renting seems like throwing away money. If a person can get a small home that's still bigger than an apartment that would be at a monthly mortgage payment that's equivalent to a rent payment, would owning be better than renting?
I know there'd be other worries - upkeep, mowing, etc. but I don't mind that stuff if it would be my own place.
General opinions or opinions based on the financial knowledge between the two would be helpful.
2006-07-31 18:22:33 · 5 answers · asked by IAskUAnswer 6 in Business & Finance ➔ Renting & Real Estate
don't forget property tax and insurance when you own a home. there will also be closing costs on the sale (but only a one-time expense).
when you're renting, you're also not exposed to fluctuations in the property market. right now, with the slow-down in the market, if you buy, you risk purchasing a home and then having it depreciate, which will end up with you stuck with a mortgage that is much more than what your home is actually worth.
2006-07-31 18:29:18 · answer #1 · answered by JoeSchmoe06 4 · 0⤊ 0⤋
Owning a home is a good investment but it shouldn't be the only investment you have. Staying in a home for 10-15 yrs turns around a nice profit. Keeping a house 3-5 yrs, then selling does not result in the investment gain you could get elsewhere.
Monthly payments, mortgage vs renting, are not created equal. A fixed monthly rental payment won't fluctuate every year. Your mortgage payment will reflect increases in property taxes and homeowners insurance. Utilities are also higher, especially paying for a/c for rooms you don't need.
I recommend renting.
2006-08-01 02:37:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Owning is always better than renting. I've been a homeowner for over 25 years and would never consider renting again.
In many parts of the country, it's still cheaper to buy than rent! My mortgage payment is only $605.00 and I could rent the place out for $1,500.00!
2006-07-31 18:38:51 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
well my inlaws brought my house and we are paying them rent,
the price of houses are so expensive that you are not guaranteed to even own it before you die, i know a few people who have brought houses and ended in too much debt they can handle and lost the house, not only are they still paying that debt but they are now renting so they are paying a s*** load of money that going nowhere now. i suppose it depends on what u can afford and how smart with money u are. renting can even be a pain because you don't own the house there for you have no rights in changing the house or yard unless your landlord allows u too if u know what im trying to say. i would love to own my own home but i suppose it comes down to what u can afford.
2006-07-31 18:31:08 · answer #4 · answered by Krissy 4 · 0⤊ 0⤋
buying is better
2006-07-31 18:28:24 · answer #5 · answered by amberharris20022000 7 · 0⤊ 0⤋