- 8,916
- 472
You mad.
Rent Forever, Donât Buy A Home
- Thread in 'General' Thread starter Started by DCAllAfrican,
- Start date
- 8,916
- 472
You mad.
- 2,062
- 16
graduating soon, so im really interested on this subject. and this seems like the perfect response, it all depends. I know the entire NE is just awful when it comes to property tax.
then i see my parents who get a letter form the city saying your house has devalued $100k in the last year.
- 2,062
- 16
graduating soon, so im really interested on this subject. and this seems like the perfect response, it all depends. I know the entire NE is just awful when it comes to property tax.
then i see my parents who get a letter form the city saying your house has devalued $100k in the last year.
- 7,332
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i live in NYC, i'm gettin' jipped no matter what i do.
- 7,332
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i live in NYC, i'm gettin' jipped no matter what i do.
- 1,303
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I just bought a home. And honestly its more then rent. But I went from a one bedroom to a four bedroom. Renting is cheaper but owning there is a lot of perks.
- 1,303
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I just bought a home. And honestly its more then rent. But I went from a one bedroom to a four bedroom. Renting is cheaper but owning there is a lot of perks.
- 332
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hmmm never thought of it like that
- 332
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hmmm never thought of it like that
- 1,477
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I worked at a property management firm here in the DC Metro Area so cosign everything IronMan said to the fullest.
I would also like to add that breaking a lease isn't as easy as this article makes it seem. At my former property and other properties I know of, the lease breaking fee can be several months rent and they may have clauses that if the apartment isn't rented you have to keep paying until it is. Plus credit bureaus like experian have begun tracking rent payments and lease breaking, so your credit score can certainly take a hit for breaking a lease because you are essentially not satisfying a debt.
I'd also like to point out that not being responsible for repairing things in the apartment isn't as great as it seems. This especially true in large metro areas where apartment communities have hundreds of apartments. Basically the problem is too many apartments can create a huge backlog of repairs and it can takes weeks and even months to get something done. So honestly the inconvenience of not having things work in your apartment for long periods of time isn't even worth the no cost of paying for the repair. Besides apartment communities are beginning to charge for repeated repairs.
With all that said, owning your own home > renting if you are financially savy. My parents, for example, have been paying my home for the past 12 years and we have about 4 years left to pay, so by the time my younger sister finishes college my parents will only have to pay the yearly property tax. Besides all the tax deductions that they give for being a homeowner is > than the reduced costs of renting (not to mention all the hidden costs of renting that I mentioned above).
I would also like to add that breaking a lease isn't as easy as this article makes it seem. At my former property and other properties I know of, the lease breaking fee can be several months rent and they may have clauses that if the apartment isn't rented you have to keep paying until it is. Plus credit bureaus like experian have begun tracking rent payments and lease breaking, so your credit score can certainly take a hit for breaking a lease because you are essentially not satisfying a debt.
I'd also like to point out that not being responsible for repairing things in the apartment isn't as great as it seems. This especially true in large metro areas where apartment communities have hundreds of apartments. Basically the problem is too many apartments can create a huge backlog of repairs and it can takes weeks and even months to get something done. So honestly the inconvenience of not having things work in your apartment for long periods of time isn't even worth the no cost of paying for the repair. Besides apartment communities are beginning to charge for repeated repairs.
With all that said, owning your own home > renting if you are financially savy. My parents, for example, have been paying my home for the past 12 years and we have about 4 years left to pay, so by the time my younger sister finishes college my parents will only have to pay the yearly property tax. Besides all the tax deductions that they give for being a homeowner is > than the reduced costs of renting (not to mention all the hidden costs of renting that I mentioned above).
- 1,477
- 75
I worked at a property management firm here in the DC Metro Area so cosign everything IronMan said to the fullest.
I would also like to add that breaking a lease isn't as easy as this article makes it seem. At my former property and other properties I know of, the lease breaking fee can be several months rent and they may have clauses that if the apartment isn't rented you have to keep paying until it is. Plus credit bureaus like experian have begun tracking rent payments and lease breaking, so your credit score can certainly take a hit for breaking a lease because you are essentially not satisfying a debt.
I'd also like to point out that not being responsible for repairing things in the apartment isn't as great as it seems. This especially true in large metro areas where apartment communities have hundreds of apartments. Basically the problem is too many apartments can create a huge backlog of repairs and it can takes weeks and even months to get something done. So honestly the inconvenience of not having things work in your apartment for long periods of time isn't even worth the no cost of paying for the repair. Besides apartment communities are beginning to charge for repeated repairs.
With all that said, owning your own home > renting if you are financially savy. My parents, for example, have been paying my home for the past 12 years and we have about 4 years left to pay, so by the time my younger sister finishes college my parents will only have to pay the yearly property tax. Besides all the tax deductions that they give for being a homeowner is > than the reduced costs of renting (not to mention all the hidden costs of renting that I mentioned above).
I would also like to add that breaking a lease isn't as easy as this article makes it seem. At my former property and other properties I know of, the lease breaking fee can be several months rent and they may have clauses that if the apartment isn't rented you have to keep paying until it is. Plus credit bureaus like experian have begun tracking rent payments and lease breaking, so your credit score can certainly take a hit for breaking a lease because you are essentially not satisfying a debt.
I'd also like to point out that not being responsible for repairing things in the apartment isn't as great as it seems. This especially true in large metro areas where apartment communities have hundreds of apartments. Basically the problem is too many apartments can create a huge backlog of repairs and it can takes weeks and even months to get something done. So honestly the inconvenience of not having things work in your apartment for long periods of time isn't even worth the no cost of paying for the repair. Besides apartment communities are beginning to charge for repeated repairs.
With all that said, owning your own home > renting if you are financially savy. My parents, for example, have been paying my home for the past 12 years and we have about 4 years left to pay, so by the time my younger sister finishes college my parents will only have to pay the yearly property tax. Besides all the tax deductions that they give for being a homeowner is > than the reduced costs of renting (not to mention all the hidden costs of renting that I mentioned above).
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- 11,954
Housing prices have plummeted here in Arizona. My dad bought a house for around 300k when he finished grad school, and the value went up for a couple years. Then around 2008, the house is worth probably 1/2 what it used to be. This sucks for the older generation that are losing money on their homes, but it is great for people like me who are soon to be college graduates. You can get a million $ house for like 400-500k.
But the bottom line, if you can't AFFORD it, you probably do not need it
But the bottom line, if you can't AFFORD it, you probably do not need it
- 28,747
- 11,954
Housing prices have plummeted here in Arizona. My dad bought a house for around 300k when he finished grad school, and the value went up for a couple years. Then around 2008, the house is worth probably 1/2 what it used to be. This sucks for the older generation that are losing money on their homes, but it is great for people like me who are soon to be college graduates. You can get a million $ house for like 400-500k.
But the bottom line, if you can't AFFORD it, you probably do not need it
But the bottom line, if you can't AFFORD it, you probably do not need it
- 2,062
- 16
im in the dc area and looking when i graduate. and as an accounting student, thats what i figured was the huge advantage.
- 2,062
- 16
im in the dc area and looking when i graduate. and as an accounting student, thats what i figured was the huge advantage.
- 3,063
- 11
But why? All going to plan, you'll have something to show for it in the end. If you rent all your life then you end up with nothing. Homes are assets.
Going with the notion that you see it as a debt, I'm assuming that you view it that way if you have to take out a mortgage to pay for it; if you had the cash to buy outright, would you?
What are property taxes in the States? I see people saying that their properties are still having expenses, but I'm unsure if you guys have something different there compared to what I have here.
Here we have rates, which are paid quarterly and help fund things that the city council maintain, like sewerage and water.
- 3,063
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But why? All going to plan, you'll have something to show for it in the end. If you rent all your life then you end up with nothing. Homes are assets.
Going with the notion that you see it as a debt, I'm assuming that you view it that way if you have to take out a mortgage to pay for it; if you had the cash to buy outright, would you?
What are property taxes in the States? I see people saying that their properties are still having expenses, but I'm unsure if you guys have something different there compared to what I have here.
Here we have rates, which are paid quarterly and help fund things that the city council maintain, like sewerage and water.
- 5,409
- 923
I had finished reading through the Kobe Bryant/homophobia thread and was a little tired with the lack of critical thinking and inability to look beyond what you read or assume without knowledge that occurs on NT that I didn't feel like writing anymore than that. Sometimes it seems like so many NTers are so young and just speak up without any insight that it's easy to forget that some NTers are willing to learn.
Anyway, first:
Yes, in certain (you could even say many) instances, renting is a better idea than buying. If you don't have a substantial amount of money saved and a substantial amount in reserves to purchase a home, it is not a good idea. Thankfully most mortgage lenders and much stricter now and you it's more difficult to get a mortgage without being able to display a real financial ability to support a mortgage.
The idea that buying is not a good idea at all is shortsighted because of where the real estate market in general has been over the last 5 years or so. To whoever said something along the lines of if you bought 10 years ago, you're screwed. Not true, for the most part. If you bought 4 years ago, yes, it's going to be difficult if you need to sell your home, especially if you were one of those people who did not put much down.
The real estate market is better evaluated on a micro level. New York's market is different than Florida is different than Ohio is different than California. One county or city or town within these states is also affected on varying levels. Prices in one town could have come down 10% and in a neighboring town 15% which, in the grand scheme of things, is a substantial difference. Prices had artificially inflated and the mortgage market was out of control, there needed to be a correction and combined with everything else, it was pretty drastic.
Related to that, in many areas prices have dropped to a level that combined with low mortgage rates and tax benefits, it IS more affordable to own than it is to rent as long as you truly have the ability to do so.
In terms of renting, the idea that it is so simple, the work is done for you, low costs of getting out of a lease, etc. are largely untrue. For most NTers it is that simple because they're either too young to have gone that route on their own or parents have co-signed for them, which is fine.
Consider the idea of having a family, children who are in school. Some of you have probably been through it but the idea of potentially having to move your children around every year or even every few years can affect a childhood. Instability within a family even in that sense is not generally a positive thing. If you're renting a property and it fits your needs now, what happens if you have another child and you need more space? Someone has to own that property and what if they decide to sell it or raise the rent significantly? And on the off chance that it goes on every year or two or three? If you and your spouse have stable jobs in that area, children in the schools, you're likely going to want/need to keep them within that school district so you're limited in your options of what rentals will fit your needs. Many people find a new place but their furniture just doesn't fit in it at all, could be just a few years old and then you either buy new furniture or find something else. That's not cheap either. Yes, owning a home can be more expensive than it looks if you haven't done your due diligence but renting is not as simple as portrayed in the article.
Sure, not each of these situations will apply to everyone either but they're just as likely as the broadly painted brush of that article which is based on a lot of assumptions. Either way, renting isn't for everyone just likely owning a home isn't for everyone either. To dismiss something based on an article is ridiculous. At least with owning a home, you at least have the opportunity to rent it out if your situation does change in the future and you are unable to sell it or you at least have the opportunity to profit from your investment. If you're renting, you'll never see that money again without question.
I could go on and I don't claim to be an expert but I had read that article quite a while ago on the front page on Yahoo and knew that some people who automatically take it as gospel. There are articles one day that discuss how the market has stabilized in various areas then a doom and gloom article the next predicting prices will decline another 8% into 2012. Like with anything, there is risk involved and it needs to be a smart decision considering all factors. The author's claim that, "I think that, like all one-size fits all advice, is completely wrong" applies to just about everything he wrote as well. It sounds like he bought not long ago, it wasn't a good decision and he regrets it at the moment, what he wrote was probably applicable to his situation (admittedly many others as well) and may have been fueled by emotion. It is certainly valid in instances just as owning is in others.
- 5,409
- 923
I had finished reading through the Kobe Bryant/homophobia thread and was a little tired with the lack of critical thinking and inability to look beyond what you read or assume without knowledge that occurs on NT that I didn't feel like writing anymore than that. Sometimes it seems like so many NTers are so young and just speak up without any insight that it's easy to forget that some NTers are willing to learn.
Anyway, first:
Yes, in certain (you could even say many) instances, renting is a better idea than buying. If you don't have a substantial amount of money saved and a substantial amount in reserves to purchase a home, it is not a good idea. Thankfully most mortgage lenders and much stricter now and you it's more difficult to get a mortgage without being able to display a real financial ability to support a mortgage.
The idea that buying is not a good idea at all is shortsighted because of where the real estate market in general has been over the last 5 years or so. To whoever said something along the lines of if you bought 10 years ago, you're screwed. Not true, for the most part. If you bought 4 years ago, yes, it's going to be difficult if you need to sell your home, especially if you were one of those people who did not put much down.
The real estate market is better evaluated on a micro level. New York's market is different than Florida is different than Ohio is different than California. One county or city or town within these states is also affected on varying levels. Prices in one town could have come down 10% and in a neighboring town 15% which, in the grand scheme of things, is a substantial difference. Prices had artificially inflated and the mortgage market was out of control, there needed to be a correction and combined with everything else, it was pretty drastic.
Related to that, in many areas prices have dropped to a level that combined with low mortgage rates and tax benefits, it IS more affordable to own than it is to rent as long as you truly have the ability to do so.
In terms of renting, the idea that it is so simple, the work is done for you, low costs of getting out of a lease, etc. are largely untrue. For most NTers it is that simple because they're either too young to have gone that route on their own or parents have co-signed for them, which is fine.
Consider the idea of having a family, children who are in school. Some of you have probably been through it but the idea of potentially having to move your children around every year or even every few years can affect a childhood. Instability within a family even in that sense is not generally a positive thing. If you're renting a property and it fits your needs now, what happens if you have another child and you need more space? Someone has to own that property and what if they decide to sell it or raise the rent significantly? And on the off chance that it goes on every year or two or three? If you and your spouse have stable jobs in that area, children in the schools, you're likely going to want/need to keep them within that school district so you're limited in your options of what rentals will fit your needs. Many people find a new place but their furniture just doesn't fit in it at all, could be just a few years old and then you either buy new furniture or find something else. That's not cheap either. Yes, owning a home can be more expensive than it looks if you haven't done your due diligence but renting is not as simple as portrayed in the article.
Sure, not each of these situations will apply to everyone either but they're just as likely as the broadly painted brush of that article which is based on a lot of assumptions. Either way, renting isn't for everyone just likely owning a home isn't for everyone either. To dismiss something based on an article is ridiculous. At least with owning a home, you at least have the opportunity to rent it out if your situation does change in the future and you are unable to sell it or you at least have the opportunity to profit from your investment. If you're renting, you'll never see that money again without question.
I could go on and I don't claim to be an expert but I had read that article quite a while ago on the front page on Yahoo and knew that some people who automatically take it as gospel. There are articles one day that discuss how the market has stabilized in various areas then a doom and gloom article the next predicting prices will decline another 8% into 2012. Like with anything, there is risk involved and it needs to be a smart decision considering all factors. The author's claim that, "I think that, like all one-size fits all advice, is completely wrong" applies to just about everything he wrote as well. It sounds like he bought not long ago, it wasn't a good decision and he regrets it at the moment, what he wrote was probably applicable to his situation (admittedly many others as well) and may have been fueled by emotion. It is certainly valid in instances just as owning is in others.
- 1,187
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make money in the US then leave the US this is a place just to make money thats what its all about
- 1,187
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make money in the US then leave the US this is a place just to make money thats what its all about
- 22,262
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Here in Texas you can build a brand new house 30 minutes from downtown Dallas for 150K
Tomorrow I'm going to see a brand new home where the builder went belly up. Its 1900 sq ft in one of the best school districts in the state. The asking price is 140K
This article is ridiculous, right now I live in a 775 sf apartment where I get noise complaints every week for loud music and I don't even own a stereo. There is dog %$*# in parking garage and the fire alarms go off at random times. I pay 755 a month. Also my truck was stolen in August. For me to move out of my apartment before my lease is up I have to pay almost 2 grand.
Renting is for young people, people that may want to move around and people with bad credit.
I"m 28 years old and I ain't going nowhere anytime soon buying a house is an easy choice for me.
Tomorrow I'm going to see a brand new home where the builder went belly up. Its 1900 sq ft in one of the best school districts in the state. The asking price is 140K
This article is ridiculous, right now I live in a 775 sf apartment where I get noise complaints every week for loud music and I don't even own a stereo. There is dog %$*# in parking garage and the fire alarms go off at random times. I pay 755 a month. Also my truck was stolen in August. For me to move out of my apartment before my lease is up I have to pay almost 2 grand.
Renting is for young people, people that may want to move around and people with bad credit.
I"m 28 years old and I ain't going nowhere anytime soon buying a house is an easy choice for me.
- 22,262
- 11,072
Here in Texas you can build a brand new house 30 minutes from downtown Dallas for 150K
Tomorrow I'm going to see a brand new home where the builder went belly up. Its 1900 sq ft in one of the best school districts in the state. The asking price is 140K
This article is ridiculous, right now I live in a 775 sf apartment where I get noise complaints every week for loud music and I don't even own a stereo. There is dog %$*# in parking garage and the fire alarms go off at random times. I pay 755 a month. Also my truck was stolen in August. For me to move out of my apartment before my lease is up I have to pay almost 2 grand.
Renting is for young people, people that may want to move around and people with bad credit.
I"m 28 years old and I ain't going nowhere anytime soon buying a house is an easy choice for me.
Tomorrow I'm going to see a brand new home where the builder went belly up. Its 1900 sq ft in one of the best school districts in the state. The asking price is 140K
This article is ridiculous, right now I live in a 775 sf apartment where I get noise complaints every week for loud music and I don't even own a stereo. There is dog %$*# in parking garage and the fire alarms go off at random times. I pay 755 a month. Also my truck was stolen in August. For me to move out of my apartment before my lease is up I have to pay almost 2 grand.
Renting is for young people, people that may want to move around and people with bad credit.
I"m 28 years old and I ain't going nowhere anytime soon buying a house is an easy choice for me.
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Dont wanna throw money away for stupid rent. Own a house.
