why people want to own property, rather then rent for ever ?

Question

assuming u dont plan children, and u dont get excited about the idea of having your own home in 30 years when u r too old for most things anyway, why would u bother with mortgage hassle?

i know we r conditioned to own, but what for ???

anyway investing in funds etc is more flexible and more hassle-free if u have to allocate cash somewhere...no ?

Answer 1

Security reasons

People feel more secure with owning property......money is not the issue here......

Answer 2

I own my house outright. I never again have to worry about being put out into the street if my income is not enough (the dark maybe, but not the street).

I don't have children, or plan for any. What I do have is a few pets. No restrictions about size or type of pets when you own.

If you get tired of looking at the carpet or the kitchen cabinets, you are free to change them if you can afford to. When you rent, the only way you get new is when your old is so broken that it can't be fixed one more time. Then your landlord replaces with what is cost effective, not what might be pleasing to your eye.

Now that I no longer have housing cost, I have some money available to invest/save. When I had rent or mortgage to pay each month I barely had enough to buy food.

This is a very personal decision that people make. Some people want the feeling of security that comes with home ownership. Others prefer the feeling of freedom that renting provides. What is right for one person may not be right for another.

Answer 3

I have been in mortgage banking for 20 years and continue to rent. Those that tell you about equity may be right if they purchased years ago, yet they forget the pain and remember the value increase (which may or may not be realistic as we are starting to see home values stabilize and depreciate in places like L.A., SanDiego, Chicago, and other large city areas).
I continue to rent in Chicago for the following reasons:
1. I would rather toss twelve grand away every year in rent, than spend that amount or more in property taxes, upkeep, and all of the utilities and pipes from my place to the sewer main, in addition to a mortgage.
2. Unprecedented freedom: I can move without much restriction, as my rental unit is in a great location and will rent to another quickly. I also have the freedom to use all the cooking gas and hot and cold water I like without paying extra for those items.
3. If I ever need repairs, like living on the top floor and the roof leak caused water damage to my closet, the landlord fixes everything and I was put up at a hotel for the two nights they repaired the damage at their expense. Just the avoidance of an insurance claim alone is worth a lot. Of course, you should still carry renters insurance for goods, if those get damaged, yet you need not worry about expensive structural insurance.
The biggest single factor for me is that although I am very structured at work, I am not in personal life. I doubt I could keep up with all of the responsibilities of home ownership and still have enough to travel like I enjoy.
Ultimately, I have never been married and have no kids, so this life is just right for me right now.
Rent On! Don't listen to those that now suffer from their personal "money pits." Rent On!

Answer 4

I came up with these 20 so far, and none of them have anything to do with having children or wanting to "grow old" in a house you own:

*To reduce your income tax liability
*To increase your net worth
*To have an asset rather than a liability
*To make money in one of the lower-risk arenas for investment
*To make money without having to put money in (no-money down, immediate equity)
*To make money without having to keep your money in very long (i.e. I know people with CA real estate who doubled their investment in less than 1 year)
*To be the landlord making money rather than the renter making the landlord money
*To have something to use as collateral for larger investments (i.e. starting your own business)
*To have a place to run a business out of that actually offsets the costs of the mortgage because you can write it off on your taxes
*To not have to deal with paper thin walls and complaints when you are making too much noise
*To have a free place for multiple guests to sleep when they are visiting you
*To have a guaranteed place to park when you come home from work at the end of the day
*To be able to actually store things where you live without paying extra for it
*To be able to decorate however you want or damage whatever you want and not have to ask permission or be responsible to someone else for it
*To have a yard to plant a garden in
*To have some assets that can be liquidated to pay off your debts after you die
*To have a pet without having to pay extras fees and actually having a place for that pet to play
*To make everyone you know that for whatever reason do not own property "green with envy" (if that's what you're into)
*To "Keep up with the Jones'"
*To provide income for retirement or unemployment (I lived off the equity in my home for almost a year while in-between jobs, and that was AFTER I'd already used my savings.)

There are many more. Shall I go on?

Answer 5

In the USA (and less so in other countries, so long as they do not -- as some countries used to -- impose a tax on "imputed rent" of owned properties in which a taxpayer lives) there are heavy tax subsidies for owner occupiers: interest deduction, forgiveness of capital gains tax up to $250,000 per owner-occupier, etc.

Since the 1960s, when women began to enter the workforce and -- as a result -- families' ability to pay for housing rose, and house prices in places were employment opportunities exist rose too, people (in the USA, and later in the UK) came to expect (and depend on) regular house-price increases.

In the 1940s and 1950s prices were stagnant. That could happen again. In Japan and Korea, values fell (as they did, at least temporarily in Britain in the 90s, leaving many homeowners "underwater" and unable to move home, and some insolvent).

By and large, people's outlook is formed by their early experience. Those who lived through the depression are more frugal than other people. And so on.

In many countries, home ownership runs at a far lower rate than in the US and the UK. In the US the rate is 68.9%, varying quite a bit by region.

Answer 6

I own my own property free and clear now. The money you pay out renting every month is just making someone else profit from it It is a good feeling to have to know you dont have to pay rent for something that is never gona be yours. I have children to pass my land down to when i am gone but even if i didnt i still would rather own then rent

Answer 7

All things being equal, Owning builds equity, equity is money in your pocket. Rent is equity in someone else's pocket..

I can do with my property those things I see fit to do. I can paint, build walls, redecorate with impunity.. Renters can't do that.

For some people that have a mobile lifestyle, even renting makes little sense

Over a person's lifetime, the price (value of a property) generally increases, it is one of the best hedges against inflation a person can have in their investment portfolio.

Answer 8

owning property has advantages:

1. property could appreciate - properties overall given time will appreciate.

2. owning a property allows you to deduct the interest you are paying on the mortgage off your taxes. this could help by lowering your tax bracket.

3. owning and paying a mortgage improves credit.

Answer 9

for investment. rent money is just like flushing down the drain
if you bought a house in 1976 for $40,000.now it is worth around $600,000. who is ahead the renter who after 30 years has $0.00
or
the one who took a mortgage.
also the interest on the loan is tax deduct able.