Rent Forever, Don’t Buy A Home

[DCAllAfrican]

http://www.bargaineering....ver-dont-buy-a-home.html

With the new year comes the inaugural post for my new series, the Devil’s Advocate posts, where I try to argue the other side of common sense personal finance advice (read the Devil’s Advocate series introduction post). This post will tackle one of the cornerstones of well-accepted advice: rent as little as possible and buy a home as soon as you can, renting is just like throwing your money away. I think that, like all one-size fits all advice, is completely wrong and here’s why.

Renting Keeps You Flexible

When you rent, you can pick up and move almost whenever you want, with very little penalty (perhaps an early termination fee of some kind); when you own, selling a home can take a very very long time. You lose a lot of flexibility when you “put down your rootsâ€

 

[DCAllAfrican]

http://www.bargaineering....ver-dont-buy-a-home.html

With the new year comes the inaugural post for my new series, the Devil’s Advocate posts, where I try to argue the other side of common sense personal finance advice (read the Devil’s Advocate series introduction post). This post will tackle one of the cornerstones of well-accepted advice: rent as little as possible and buy a home as soon as you can, renting is just like throwing your money away. I think that, like all one-size fits all advice, is completely wrong and here’s why.

Renting Keeps You Flexible

When you rent, you can pick up and move almost whenever you want, with very little penalty (perhaps an early termination fee of some kind); when you own, selling a home can take a very very long time. You lose a lot of flexibility when you “put down your rootsâ€

 

[furrell]

Additionally, with the banks still recovering from the sub-prime mortgage debacle, they are making it harder to take out loans to get a home. You have to put at least 20% of the home's value up in addition to having near spotless credit. They aren't playing around anymore. In the short term, depending on where you live, renting is the better option. Its great to own your own home though when everything is paid off.

 

[furrell]

Additionally, with the banks still recovering from the sub-prime mortgage debacle, they are making it harder to take out loans to get a home. You have to put at least 20% of the home's value up in addition to having near spotless credit. They aren't playing around anymore. In the short term, depending on where you live, renting is the better option. Its great to own your own home though when everything is paid off.

 

[the notorious bum]

Just bought a house straight cash homie, you can't tell me nothing!

 

[the notorious bum]

Just bought a house straight cash homie, you can't tell me nothing!

 

[campbellsoup]

Depends on the location.


But in this economy, I'll have to agree.

10 years ago, nah.

 

[campbellsoup]

Depends on the location.


But in this economy, I'll have to agree.

10 years ago, nah.

 

[bostonthreeparty]

Originally Posted by Furrell

Additionally, with the banks still recovering from the sub-prime mortgage debacle, they are making it harder to take out loans to get a home. You have to put at least 20% of the home's value up in addition to having near spotless credit. They aren't playing around anymore. In the short term, depending on where you live, renting is the better option. Its great to own your own home though when everything is paid off.

that's the way it should of always been..... 

 

[bostonthreeparty]

Originally Posted by Furrell

Additionally, with the banks still recovering from the sub-prime mortgage debacle, they are making it harder to take out loans to get a home. You have to put at least 20% of the home's value up in addition to having near spotless credit. They aren't playing around anymore. In the short term, depending on where you live, renting is the better option. Its great to own your own home though when everything is paid off.

that's the way it should of always been..... 

 

[bk201]

Posting for later.

 

[bk201]

Posting for later.

 

[ninjahood]

been told cats this...if ur coppin a house do it OUTSIDE this country where u aint gotta worry about property tax.

 

[DCAllAfrican]

Before I even read this article, I was thinking about if I would ever own or not.

Sometimes I view it as one of those default American Dream type of events that everyone just must experience for their life to be complete. Especially considering I am not married, I really don't even think about owning.

Plus I view it as a form of debt. Since it is debt. So, I don't really want any debt associated with my name.

 

[ninjahood]

been told cats this...if ur coppin a house do it OUTSIDE this country where u aint gotta worry about property tax.

 

[DCAllAfrican]

Before I even read this article, I was thinking about if I would ever own or not.

Sometimes I view it as one of those default American Dream type of events that everyone just must experience for their life to be complete. Especially considering I am not married, I really don't even think about owning.

Plus I view it as a form of debt. Since it is debt. So, I don't really want any debt associated with my name.

 

[vahustler]

Originally Posted by CampbellSoup

Depends on the location.


But in this economy, I'll have to agree.

10 years ago, nah.

definitely depends on location. Virginia Beach rent for a 4-5bdr is not a smart way to go by any means.

 

[vahustler]

Originally Posted by CampbellSoup

Depends on the location.


But in this economy, I'll have to agree.

10 years ago, nah.

definitely depends on location. Virginia Beach rent for a 4-5bdr is not a smart way to go by any means.

 

[queencitysneakerqueen]

Why should I avoid u haul I'm moving soon to another state

 

[queencitysneakerqueen]

Why should I avoid u haul I'm moving soon to another state

 

[ooiron manoo]

Irony of the article...you will be renting from someone that own's a home.

Renting Keeps You Flexible
When you own a home, you don't have a lease.  Planting your roots is a thing of the past, I know plenty of people that either A)Own multiple properties or B) have moved due to financial/job reasons and are currently renting out their homes.  They call it: "Letting someone else pay my mortgage, and I get the tax break."

Someone Else Does The Repairs
This is true, however, security deposits are there for a reason.  Also, replacing a washer/dryer or refrigerator

.  I haven't lived in a place where that is provided for you by the landlord, it's always been bring your own furniture and appliances.  I know they provide those amenities in luxury condos, but you pay dearly for them.

Owning A Home Is More Expensive Than It Looks
Reason's why I wouldn't buy a condo, the fee's are ridiculous.  When you buy a home you have the option of including your insurance and taxes with mortgage payments instead of getting punched in the gut twice a year (property taxes).  You can then have a renter pay those fee's for you.

Home Prices Can Go Down Short-Term
They are only going lower, so it will be hard to build equity.  I don't think home prices/values will ever reach the peak they reached before the bubble burst.  It sucks for a lot of people that got caught up on it.  People were getting swindled though, buying $500k homes while bringing home a $50k a year salary.  C'mon now.

My honest opinion is that the general rule of “buy a house, stop rentingâ€

 

[thegoat121886]

Originally Posted by ninjahood

been told cats this...if ur coppin a house do it OUTSIDE this country where u aint gotta worry about property tax.

word. my parents stay telling me i need to hurry up and get myself together and get a house. i try to reason with them with many of the same things in that article and they hit me with the 

 

[thegoat121886]

Originally Posted by ninjahood

been told cats this...if ur coppin a house do it OUTSIDE this country where u aint gotta worry about property tax.

word. my parents stay telling me i need to hurry up and get myself together and get a house. i try to reason with them with many of the same things in that article and they hit me with the 

 

[ooiron manoo]

Irony of the article...you will be renting from someone that own's a home.

Renting Keeps You Flexible
When you own a home, you don't have a lease.  Planting your roots is a thing of the past, I know plenty of people that either A)Own multiple properties or B) have moved due to financial/job reasons and are currently renting out their homes.  They call it: "Letting someone else pay my mortgage, and I get the tax break."

Someone Else Does The Repairs
This is true, however, security deposits are there for a reason.  Also, replacing a washer/dryer or refrigerator

.  I haven't lived in a place where that is provided for you by the landlord, it's always been bring your own furniture and appliances.  I know they provide those amenities in luxury condos, but you pay dearly for them.

Owning A Home Is More Expensive Than It Looks
Reason's why I wouldn't buy a condo, the fee's are ridiculous.  When you buy a home you have the option of including your insurance and taxes with mortgage payments instead of getting punched in the gut twice a year (property taxes).  You can then have a renter pay those fee's for you.

Home Prices Can Go Down Short-Term
They are only going lower, so it will be hard to build equity.  I don't think home prices/values will ever reach the peak they reached before the bubble burst.  It sucks for a lot of people that got caught up on it.  People were getting swindled though, buying $500k homes while bringing home a $50k a year salary.  C'mon now.

My honest opinion is that the general rule of “buy a house, stop rentingâ€

 

[what up]

Owning property definitely ties you down to a location. You just have to absolutely love where you live, otherwise home ownership is like an albatross around your neck.

A lot of folks live in areas where rent is very affordable. However, you're you're dishing out $1200+ for an apartment, put that towards something you'll (hopefully) have forever. Just my two cents considering I just went through this process.