is it a better idea to rent an appartment or buy a house. my girlfriend want's a place and is loaded?

Answer 1

Buy. If you rent you don't own anything so you're throwing money down the drain.

Answer 2

Buy of course, but.... the timing has to be right. Study the market and whach for the market to drop. Usually, around the fall/winter time is great, it is really difficult to sell at this time of year because not everyone is looking, so the market is low. Make sure the area you are looking in has a good turnover if you ever want to sell your home. Sometimes buying a home with a bit of work needed can be a great investment. For example, if you buy a home which needs a new bathroom or kitchen, fixing up the old room can put money in your pocket when it is time to sell.

Sometimes a mortgage payment can be higher in rent, but after a few years in goes down. Your friend would be crazy not to buy now if she has a room mate to cover half the morgage payment and the bills.

The first year is going to be really tough, because when you buy, remember you need at least and extra $2000 for lawyers fees, the city wants their first year taxes up front, if you heat with oil, you have to pay for the remainder of the oil left in the tank to the old owner, (this will be settled with your lawyer), another $1000(+-) for a property survery, (which the bank will hire for you), etc, etc, it can pile up and could take about a month or so, and can be very stressful. What I am trying to say, make sure you have the money upfront for all the surprises.

But, I say buy. I now own 6 properties. I bought my first own with a tenat living in the basement. Saved enough money, bought a well maintened property from an elderly couple who was ready to retaire for a steal and now renting to tennants (it has now tripled in value from 8 years ago), bought the property next door to my first with the money I am now making from the rentals, and using all my rental money to buy additional property. The bank loves us and are always willing to lend us the money.

Keep a good reputation with your bank and they will have no problem loaning the money.

Good luck. It is a scary decision, but worth it. Everytime a buy a new property you can't believe the stress, headaches I have to go through until the money is in the bank and keys in my hand.

Answer 3

It depends on your (her) lifestyle plans!

If you are in a Career track that means you will move about alot in the next 20 years or so, then renting could be a better option. Also, when renting your monthly out-goings are often less (size for size) making life easier! Plus, all major repairs etc are the responsibility of your Landlord!

However...... Overall, if you can afford the payments (and keeping them up is the important thing to think about) then Buying may be the better option, particularly if you don't plan alot of moving! Housing prices often fluctuate, and a house could be worth less than you paid in a few years, but the overall trend in property prices is up and up!..... So if you stick it out, you get more back than you paid when you come to sell!

Seek advice from an Independant Financial Advisor and see what is the most appropriate solution financially!... The Rest is up to you!

Good Luck!

Answer 4

That should be a pretty easy decision to make.If she's got the money then investing in a house would be much better.When you rent it's almost the same as throwing money out the window.Owning the house is a long term investment and that money could grow over time.
Home ownership is a big resposibility but at least you're paying the bank for something you'll own.When you rent you're payingfor something you will eventually give up.

Answer 5

The obvious answer is that it is almost always better to buy than to rent. Not only are you making an investment, but mortgage interest is tax deductable, which makes purchasing a home cheaper than renting. The exception would be if you relocate often.

If you are planning to purchase a house, look at new rather than used. While there are lots of nice older homes available, there are advantages to purchasing a new house.

Convenience. Kitchens in new homes usually have dishwashers and other appliances built-in for convenience. Nearly all new homes are built with convenient central heating and, in warm climates, central air conditioning. Space heaters and room air-conditioners are not needed. There are more electrical outlets, as well as outlets for cable TV and telephone. Bathrooms often have more convenient features such as vanity cabinets, large mirrors and medicine cabinets, whirlpool tubs and easy-to-clean plastic tub enclosures.
Energy Efficiency. Because of better windows, more efficient heating and cooling equipment, better control of air infiltration, and greater use of insulation, new homes consume half as much energy as homes built prior to 1980. Old homes tend to be drafty and less comfortable. Also, frost and condensation are more likely to appear on windows of older homes, drip down, and cause deterioration of wood trim and walls.
Less Maintenance. New homes are available with siding, windows and trim that never need painting. Wood decks are typically made of pressure-treated lumber which resists rot and insects. Pressure-treated wood is also used where wood comes in contact with concrete.

Whatever house you decide on, have a professional home inspector look at it before you buy. Even a new house can have problems that are hard to detect without a thorough inspection.

Answer 6

If you can afford it Buy, why give your money away to some landlord, I'm sure you can find better things to do with it and eventually you would end up paying more in rent than would have cost to buy a property, the added bonus is when you come to sell hopefully you will not only get your money back but make a profit as well.

Answer 7

It depends on your definition of "better idea"

Financially, its better to buy, for flexibilty its better to rent.

Lets test your definition of loaded shall we.....

although if shes "loaded" why not book out a penthouse at a decent hotel for 6 months at a time, you can get one fo those a 2-5 grand a week and you get lots of services thrown in. And it'll be in a better location than a flat.

People who have lots of money do this all the time.

Why buy or rent a flat when you've probably got enough to think about running your 1,000 acre estate or jet-setting all over the world.

Answer 8

Buy defo renting is a waste of money, make sure both of your names are on the mortgage. Its an investment for you both and no matter what happens you will have some money invested, if you want to move into a more expensive house or if you end up going your separate ways which hopefully you wont. Good Luck :o)

Answer 9

Depends on how serious your relationship is. If you're in it for the long haul, buy a place together. If you think it won't last the distance, rent a place and then at least you can get out quick. Or if she's the loaded one, get her to buy it and pay for it and you just live there. Then you are not committed either way.

Answer 10

That relies upon. Are residences greater low value on your area now? are you able to locate the money for to place down 5%? (or greater). what's your interest subject? If the loan cost is greater suitable than 30% of your earnings, the economic business enterprise will say you won't be in a position to locate the money for it. Over all, i might say this is a sturdy time to purchase a house, in case you intend to stay there 5 or greater years. otherwise, no.

Answer 11

Buy a house only . Don't rent the apartment because you will lose your money for renting & you will not any for life .