What is better - renting or home ownership?

Question

I've been throwing a lot of money in the past few years at renting places to live. I hate to think that this eats up a good piece of my budget. I was wondering if it'd be easier to own a place, build up equity, and have the money actually build towards something? Any insight helpful.

Answer 1

Ownership! You can use the funds you have paid into taxes, escrow, interest for credit on your taxes... you actually have property in your name... with renting your literally throwing money away...

Answer 2

Home ownership has it hands down and anyone who tells you different is a self-serving liar.Why else would so many people own homes? Even in addition to the lost equity, laws in recent decades do nothing to support a tenants rights. A tenant can be evicted without cause in a short time. Large deposits are taken and kept because of normal wear and tear.
However, also to be considered is where you will be able to buy compared with where you can rent. It is relatively easy to rent, but to buy or sell is more involved. If you can swing it take the plunge! Join the human race!

Answer 3

There is no question: Ownership is ALWAYS better than renting. The key is in finding a property you can afford that won't stretch your budget too thin. Step 1 is to contact a mortgage lender to find out how much house you can afford to buy. Step 2 is to consider whether your payment is tolerable at that level, if not, adjust downward. Step 3 is to hire a Realtor. After 2 years, you can use the equity you build to buy down your mortgage or to buy investment property to generate a cash flow.

Answer 4

The best asset that you can have is your home. It allows for tax breaks, builds equity value, gives you pride-of-ownership and establishes credit rating. In the long run, the value in a home will increase at a rate equal to or greater than the inflation rate. And you can always use the equity in your home to get loans for future investments or for schooling.

Answer 5

Not true for every person in every circumstance. A home can be a kind of anchor, tying you down both on a day to day basis (yard work, maintenance, and so on) and on a long term basis (you can't easily just pack up your things and move somewhere else). It also ain't necessarily so that you build equity...take a look at what is happening in the housing market today, especially where I live in San Diego. There are advantages and disadvantages to both. You have to decide what is best for you now.

Answer 6

A lot depends on how permanent you job is. Are you moving because of change in job location? There are many advantages to owning. The tax advantage is a big factor. Remember real estate is a commodity that usually goes up in value because there is a limited amount of it. It also gives you pride of ownership.
You will feel much better about something that will eventually belong to you. You can also sell for a profit in most cases.

Answer 7

I think that home ownership is so much better because the home is yours. Where as if you were renting that is just like giving your money to someone else and you never get to actually call the home yours.

Answer 8

Renting is better-you can move anytime without having to sell the house-but if you are working on settling down, and you can come up with enough money for a down payent, owning is better.

Answer 9

Yes! We are buying a house and the payments are less than rent on an apartment. What a waist of money! Renting that is.

Answer 10

Buy a home by all means if you can you are foolish to throw money away on rent aand taxes are deductable too