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Taking into consideration the economic mess that's everywhere, would you say buying or renting is the better position to be in now? Owning your home on the other hand gives you some security because you have that asset. But you're in trouble if you can't pay the mortgage. Renting has the plus of being able to walk away from the property if the worst came to the worst far more easily (assuming you're on a short term lease or month-by-month arrangement). You could move in with family or friends and share costs. Opinions please?
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I would say buying still has the edge over renting. Renting is money down the drain. If you've been paying a mortgage for years and have to sell the house to get out of trouble, at least you have a chance of having some equity built up in it. With renting, you could have been paying it for 20 years like clockwork and you're no better off than if you'd been paying it for 2.
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Buying is always a better option as you are creating an asset for yourself. The money that you spend on rent will never come back no matter what.
Having said that, please make sure you buy only if you know you will be able to pay your mortgage on time. Always have a two year plan. Make sure you are good for the next 2 years and everything will be fine.
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Buying is always a better option as you are creating an asset for yourself. The money that you spend on rent will never come back no matter what.
Having said that, please make sure you buy only if you know you will be able to pay your mortgage on time. Always have a two year plan. Make sure you are good for the next 2 years and everything will be fine.
I don't know anyone that has 2 years' worth of mortgage payments tucked away, annette. It's a nice thought but impractical the way the economy is today to count on job security and being able to make those payments for 2 years. No one can know they'll be able to pay their mortgage on time unless they already have that moeny in the bank and are absolutely sure they won't need to touch it.
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I don't know anyone that has 2 years' worth of mortgage payments tucked away, annette. It's a nice thought but impractical the way the economy is today to count on job security and being able to make those payments for 2 years. No one can know they'll be able to pay their mortgage on time unless they already have that moeny in the bank and are absolutely sure they won't need to touch it.
That's a valid point, as is annette's. The economy have changed so much in the last six months to a year that I don't think any of us can rely on old thinking or new. There's too many variables to take into consideration now.
If I were a youngster looking to leave home and get my first place tomorrow, I'd rent. The short term outlook of 'what can I commit to for the next six months to a year' needs to override the long term possible gains for now.
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I think. buying is better. It's a nice thought but impractical the way the economy is today to count on job security and being able to make those payments for 2 years.
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If you can put down 20%, buying is the best. If you can not afford the 20%, either look for a less expensive place (lower price) or rent.
It's not like you are building a rocket.
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I think. buying is better. It's a nice thought but impractical the way the economy is today to count on job security and being able to make those payments for 2 years.
Why did you copy my post? I hope you're not here just to spam us.
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Here's a method to try.
One way to tell whether it’s better to rent or buy is by checking out the price-to-rent ratio (or P/R ratio). This number gives you a rough idea whether homes in your area are fairly priced. Figuring a P/R ratio isn’t too tough. All you need to do is:
* Find two similar houses (or condos or apartments), one for sale and one for rent
* Divide the sale price of the one place by the annual rent for the other. The resulting number is the P/R ratio.If that ratio comes out above 20, the monthly costs of owning the home will likely exceed the cost of renting.
http://lifehacker.com/5458670/determine-whether-renting-or-buying-a-home-makes-more-sense
I used to think buying was always the way to go. I'm not so sure now. The big negative with renting is that you pay out that money every month and never have anything to show for it. Your landlord could not renew your lease if he felt like it. Then again, renting is easier to get out of than a mortgage when you can see you're going to get into financial troubles. It's tough work to choose one over the other.
Without frugality none can be rich, and with it very few would be poor.
- Samuel Johnson