How did you decide that it was better to continue renting or start investing in property?

Question

I'm trying to make the hard decision now.

I blogged about this on the Answers Blog: http://blog.360.yahoo.com/blog-d8pH0dcoRKeB12yOcnUQp.9VCFos?p=23983”

Answer 1

mostly randomly

however, I did learn some things

If you are gonna stay somewhere for 5 years or more, and the mortgage payment is equal to your current rent, then do it.

Also, buying land is ALWAYS (with a few exceptions) a great investment, even if you have to pay taxes on it.

Answer 2

Renting has advantages over buying and vice versa. With renting, you can live in a better location for a smaller monthly payment. Let's use $1000 a month as an example. If you buy a condo in a city and your mortgage is $2000 a month plus property tax of $250, and an assesment of $250 a month your monthly payments so far are $2500 per month. Then you will pay for your heat in the winter. You will be responsible to repair anything that breaks. Also, remember that your assesments and taxes will go up every year. When you rent, t is likely that your rent will increase every year, but you pay no property tax,no assesments, no maintenace. You can always move out whenever you want usually by breaking the lease and sacrificing your security deposit. The decision is a personal one. If you borrow $300k now and assuming you pay that mortgage for 30 years you pay back around triple of what you borrowed. A house or condo is not a good investment. Buy a building, rent it out and get others to pay the mortgage. Otherwise you don't make money in real estate. What do you think Donald Trump does?

Answer 3

Certainly, you have much to consider in this decision but dont do it because your sister is! why dont you let her settle into her house a while and get a taste of things, for how much more responsibility it is to own home than rent home...do you have time and money to maintain your home and do improvements? Do you have a significant other or want to have kids in the future? Where would you want to raise them? how often are you home to enjoy your own place right now? How good are you at saving your money for a down payment and do you have one? Do you have decent credit for a decent loan rate? Some of the Arm loans sucker you in for a good rate at first but then jack up the interest after two years and make it hard for some to pay the bills. Be careful and do your homework! Just because you may get pre approved for a certain amount does NOT mean that is the amount you should spend on a home, because this will max you out and not allow you to have money for miscellaneous needs. Be careful in your expenditures because buying a house for the first time can be VERY confusing! Also consider having a roomate who pays you rent. You could make a profit or pay down the mortgage premium much faster this way. As for the housing market, I dont know what it is like in CA, but you wont be making much of a profit in a newer home if you sell too soon, but if you do home improvements in an older home you may get more out of it. Dont consider the investment as much as you should consider your desire to be in your own personalized place that you can call home.

Answer 4

Buying is always better than renting. But are you ready to make the committment? Check out what you can afford every month, don't forget to calculate in the water, gas, electricity and HOA fee. Because sometime when you rent, these are included in the rent. Then you will determine what type of housing you can get with the money and location. Save some for furniture too, you don't want to move in a house without any piece of furniture. Or you will sacrifice too much of your personal life.

Also, find a good agent for you, who has better idea. For your first property, think about LOCATION before it is new or fancy.

Answer 5

If you can buy and your fixed mortgage is less than a comparable home's rent, it's a no-brainer = BUY.

Even if you're paying $100-$200 per month more to rent, do it. Your tax advantages are likely to help even the gap. Make sure you have an inspection performed on your new home to help avoid tons of maintenance expense later on.

I'd just jump in the buying game now. There's tons of selection and prices may never get lower! Also interest rates are great out there, so go get preapproved for a loan (talk to 3-4 lenders 1st).

Go get a REALTOR to represent you. They'll save you time & money in the home search...plus they shouldn't cost you a penny! Contact me if you need a referral in your area. Good luck and happy home-hunting!

Answer 6

If you mean renting versus buying a home: it is just a matter of comparing costs and interests.
I do not consider buying a home "investing in property." I have owned my home for about 15 years with no mortgage. The increase in value averages less than 4 per cent per year. If I had the cash to invest, I am sure I would get more than 4%.

Answer 7

I married a former real estate agent, son of a real estate agent. I came from homeowning parents. There was never any question in my mind. As soon as we both had stable jobs, we bought on a well considered ARM (with low cap and limited increase level).

We bought in San Diego when people said it was way too expensive (1984), and sold at a handsome profit, to buy in our new location. Lucky for us, the company Hubby was working for paid all the relocation costs and selling costs.

I haven't seen the type of ARM we got that first time, most of the ones these days allow negative amortization, and are not safe. Read as much as you possibly can about loans. We recently re-financed with E-Trade and are very happy with the treatment and loan.

Answer 8

traditionally, interior the very long term, shares and shares have accomplished greater suitable than materials, yet interior the final 15 years or so materials has accomplished lots greater suitable. i think of that's an eternal replace and any further materials will save increasing quicker than shares, specially via fact of immigration.that's hardly stated interior the media for worry of racist cries, yet a million/2 million immigrants are coming in each 12 months and that they want some the place to stay, at any value. domicile construction is in simple terms one hundred fifty, 000 per 12 months. except you're constructive your lease can not pass up, you would be nicely recommended to purchase the valuables.

Answer 9

When you get tired of throwing money down the toilet you're ready to invest in property..Renting is like flushing it.

Answer 10

You're paying someone else's mortgage!