is it better to buy a house or rent?

Question

when is it better to buy or rent?

Answer 1

It depends, are you in debt?
Do you have an emergency fund of 3-6 months of expenses?
Do you live where you want to live for a minimum of 3 years?
Do you have at least 20% down?

If you are in debt, you shouldn't buy until you only have a house payment and utilities. Of course you will qualify for a loan while in debt. Basically if you are breathing you qualify for a loan now days, it doesn't mean you should buy a house! Mortgage lenders work on commission, they sell you the mortgage, they get paid.

20% down, tons of programs where you can do zero down or an 80/20 split. Been there, done that and it was STUPID. When my husband got transferred we barely got what we owed on the house out.

And if you don't follow that advice at least have an emergency fund of 3-6 months of all you expenses. When you buy a house, something happens, dishwasher stops working, the gutters need fixed, curtains need bought, etc.

I suggest you read:
anything by Suze Orman
anything by Larry Burkett or Howard Dayton
Total Money Makeover by Dave Ramsey

Answer 2

2

Answer 3

Let me focus on financial aspect of rent vs own.

Suppose yr monthly rental is say 1000, this amount you pay to the house owner. Suppose your loan instalment per month is 1500, you pay this amount to the bank. Typically the loan instalment is bigger than the rent. But it may depend on the tenor and amount of the loan.

So there is more money outflow (from your pocket) in owning your own house, if you take loan to buy it. But 1500 becomes your wealth. So paying 1500 every month is like accumulating your own wealth. But 1000 you pay for rent is purely an expense, there is no wealth creation. Of course, 1500 pinches you more than 1000.

But it may not make much sense under the followin scenario:
- total savings made (1500-1000=500 per month mupltiplied by no of installments) due to the higher loan instalment over the house rent is higher than the expected value of the property at the end of instalments. This scenario is possible when the economy contracts and the value of the houses are declining over the long term.

- suppose you have an investment option for the monthly cash flow difference that earns higher amounts than the house rent expense itself, you dont have much incentive to invest in own house, unless you have lots of cash to allocate in different types of investments.

Answer 4

Here are pros and cons:

Rent-Your landlord can increase the rent anytime, with prior notice, and your rent is subject to a lease agreement, which could result in you being evicted if and when your lease is expired. You can't write off rent, as you don't own the property.

Own home- You can write off a lot of the taxes you pay on the home, such as mortgage interest and property tax, and nobody will be evicting you, unless you default on your mortgage and end up having your your home foreclosed by the bank. Owning a home gives you equity in that home and you can do much more in a home than you can in a rental unit, considering the town board approves of it of course.

Answer 5

That all depends on your particular situation. Generally it is better to buy a home. There are tax benefits, your money is working for you because you are in an ownership role at a home is an asset along with the fact your home will gain equity or money value almost withou you having to do anything but keep up rgular maintenance. Feel free to log onto http://www.justgetaloan.net there are several calculators which you may use to wiegh the pro's and con's of your particular situation. Also if you fill out the information a personal professional mortgage consultant will contact you to review your status. For further assistance you may contact me direct at 866 530 7300 ext 7305 or by email at [e-mail]

Answer 6

I'm a Realtor, and it is much better to buy. With renting, you pay month after month, and in the end...you don't own anything. With a house, you may be making monthly payments, but in the end, the house is YOURS. I could write a book about the pros and cons of each, but ultimately, buying is DEFINITELY the best and smartest choice! Good luck! =]

Answer 7

You gain nothing with renting. You can rent for eternity and own nothing.
Or you could get a loan for 10-15-20-30 years and eventually own something. Plus you build your credit line up over the years.
- you can do whatever you want in your own house.
You owe the bank not another person.
you lose it you will ruin your credit though.
Plus probably a lot cheaper in the long run
Cons: mowing your own yard and maitenance work.

Answer 8

The good thing about buying is that you can sell after it is payed off and make a profit. Renting you still pay untill you leave and only get back your security desposit

Answer 9

Renting is the equivalency of spending the amount you spend on rent as the same as spending it on drinking latte sorrounded by people who tell you how to drink it and drinking it feels good but it's temporary and has no benefits.
Buying is the equivalency of creating a savings, getting the US Government to pay for part of your payment and no one can tell you how you can drink your latte.
Buena Suerte

Answer 10

in case you may arise with the money for this further costs paying for is lots greater efficient because of the fact your construction an fairness. nonetheless the financial downturn did have a destructive impact on housing fees, frequently belongings is considered as an investment. evaluate.. $2 hundred,000 residing house. Pay lease for ten years. we could purely say it equates to one hundred,000 over those ten years. in case you go away that residing house, how a lot money do you have... no longer something. in case you have been paying a loan and offered that residing house.. (and offered it for precisely what you had in it) you would be strolling away with $one hundred,000 (minus criminal costs ofcourse) one way you very own some thing that is barrowed against and offered.. any incorrect way, you placed out a ton of money and have element to tutor for it. the only upside to lease is that it relatively is greater value-effective..and you do no longer could complication approximately paying to restoration something.