Is buying a home always a better financial decision than renting?

Question

Assuming you don't finance above your means and you're responsible with your money.

Answer 1

buy buy buy much much much better better better

Answer 2

Buy vs Renting is a personal and a financial decision. Not everyone should buy a house right now. The market is on a down turn so a house bought today may be worth less a year from now.

#1. Will you be living in the area 5 years from now. If no don;t buy.

#2. Are you happy with the place your living now. Think hard before buying

#3. How much is your rent and how much would a house cost you? If your rent is $900 per month but houses cost $300,000 in your area then your monthly expenses will double. You get a better return in a high yield money market or CD.

#4. Can you truely afford the homes you're look at. Think of all the people in trouble because they can't afford their homes.

#5. If you can't get a fixed rate mortgage don't buy a house.

Now that I've said all that, buying a home is usually a good thing to do, I have 3 houses. Just becareful about what your getting into and don't let anyone talk you into buy a house you don't like (because the price is right) or one that you can't afford (interest only loan).

Get an inspection and make the seller buy you home insurance, something lile American Home Shield

Good luck,

Answer 3

Hello Darkhorse,

You are smart to recognize that you should not finance or buy beyond what you can handle and to be responsible. That is what makes all the difference.

Buying IS a better financial decision...most of the time.
I didn't say "always" because nothing is always or absolute.

I'm a Realtor and of course I'm biased in favor of home ownership, but for very good reasons...not just because I want to make a sale or commission.

Here are some objective reasons to buy rather than rent.

*A home purchase is the only kind of investment that you can actually live in and use while you own it.
*You can finance/leverage a huge investment purchase over a long time...the economic principle of "time value of money" is on your side.
*Mortgage interest is tax deductable ~ Renting has no comparable tax benefits.
*Over time Inflation benefits homeowners ~ renters get hit hardest during times of inflation.

Yes, there are some short term concerns regarding owning, but in the long run, (and let's face it home ownership is really a long term deal) it's been the best investment to be made.

Over the years I've watched my clients propsper because they chose to buy rather than rent. Long after my commission checks were spent and gone, I felt great satisfaction knowning that my clients got the best part of the business that we did together. They owned their own home, and that lasts
a lifetime.


Good luck and happy buying/home owning.

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pls pic mine 4 bst answr
thin Q
u r sweet if u do.

Answer 4

Renting could be a better idea if any of these things are true:

-You don't plan to live there for more than about three years
-You don't want to be responsible for home repairs
-You need the flexibility to move away without having to sell a house
-Rent is much cheaper in your area than home payments (look on the web for Rent vs. Buy calculator)
-You're concerned about home values continuing to go down

Ignore people who say that real estate is always a good investment. It depends on your circumstances, and real estate as an investment isn't doing very well lately.

Answer 5

Not always.

Take the current market we are in today. Although it is a "buyer's market", prices are falling at record levels. So if you were to buy a house for 100k today, it may very well be worth 80k in a year or two. So not only are you making payments on a house that is worth less than you paid for it, you are also upside down on your mortgage (which means you owe more than the place is worth).

When you rent a house, you may not have the freedom to decorate or remodel as you would if it were your own place. But you also aren't tied to a mortgage if you need to move.

Each has its pros and cons, and you need to weigh them carefully. A house purchase is one of the most important purchases you can make, and you need to make it on your own. So disregard what your realtor may tell you, since according to them, it's always the right time to buy (regardless if the market is booming or busting).

No matter what you do, make sure you make your decision with a level head.

Answer 6

Many factors would determine if its better to buy or rent. You you can buy property that you will make money on then buying is the way to go. But you have to be willing to hold on long term at least until appreciation picks up in the real estate market.

Answer 7

Not always. I believe that for people living paycheck to paycheck, that renting is a better option.

People that live from paycheck to paycheck rarely have the savings for maintenance, repairs, upgrades and taxes.

Also, if you live in an area that you do not want to make your permanent home AND the market is slow, renting will allow you the freedom to move when you wish.

Answer 8

You may not make a killing owning and only in very rare situations do you loss money. When you own you should make money or at least break even. Renting is just throwing your money away.

Answer 9

No.
If you plan to be in the house for several years then probably.