Own a house or rent one? Quick survey!

[Kakmakr]

I am a bit of a traditionalist when it comes to property... because I was taught from a young age that it is of utmost importance that you own the roof over your head. My Dad has always said, "Why make someone else rich by paying him rental, if you can use that to pay for your own roof over your head"?

The problem is that times have changed and the younger generation are faced with high unemployment and very high property prices. The Banks does not give 100% guarantees anymore, so most people have to fork out huge deposits and they simply do not have that. (They also do not have assets to put up for guarantee, so they have to take out loans to pay the deposit too)

The rental scene is very competitive and if you are clever, you can stay in some fancy house that you would never have been able to buy for yourself and you can quickly move to a new place, if the rent goes up too much. (That is to say, if you are not contractually bound in a long-term rental agreement)  

[South Park]

Hi guys, I am trying to understand certain psychological parameters of young tech savvy generation when it comes finance with responsibility. The question is simple,

Let's assume you make 100 USD salary every month. You can buy a house through mortgage loan and your monthly payment will be 40 USD and that is a long term commitment.

But you can also take a house on rent where your monthly outgoing will be 15 USD. You are free to leave and move to another house anytime you want.

What would you do? Explain your reason.

Imp: I need your answers based on your current location, socio economic scenario, job security, financial backup etc. You don't need to share these details but consider this real life details while making decision.

Taking into account the real state market is inflated all over the world and that we are in a bitcoin forum it makes more sense to rent and use the rest of the money that you could use to pay for a mortgage to invest in bitcoin, that way over the years and as the price of bitcoin increases you will be able to pay the house with your bitcoin way faster than you would do paying it with fiat, and the best part is that you will never be indebted in the process and your money will be working for you and not against you as it does with a loan.

[freedomgo]

That is too expensive on your part, your earning is even not enough for your basic needs and yet you are planning to do a mortgage loan for a house. I would say the best option is just to rent or live in your car if you have one.

If my salary is that low, I would just minimize my expenses in order to save, not because I want to buy a house in the future out of that saving but I would like to save for the business capital purposes, with business though risky, you will be able to realize your dream if you succeed and you can even earn that 100 USD in a daily basis.

Let us not make ourselves to stay at the rat race, we will just be a modern slave.

[jossiel]

It actually depends on your situation. If your work is changing location from time to time and you have to relocate and you truly like your job then renting is the option for you.

But in the long run, owning your own house is still the best option. You have the value of appreciates yearly until you finish paying it. You can eventually sell it as a good profit margin or rent it or stay on it and you don't have anything to think about mortgage when you're done paying it.

Yes owning a house is a better option truly because it looks like a life savings that you have made. It may not be easy in the struggle to but at long run benecial. Having a percentage cut in salary and forfeiting some temporary pleasure can be stressful. Going for transfers from work should not be any reason not to acquire your own building because you can put it out on sale and regain your capital investment. This is the practice in my locality.

Not just a life savings but also an investment.

Aside from selling it, the common investment and passive income that you can do is to rent it out. If you've got the house in a good location, you'll have it rent and you'll surely have the monthly income coming to you.

Without any hassle and most of the time it won't be vacant because of the factor of being in a good location.

[verita1]

My answer is that I would buy the house if it is the house that I have dreamed of for all my life. If my salary is compromised to cover my daily needs, I could find other ways to earn extra money to support expenses. But I would have the security of having my own home.

I have seen this example throughout my life but unfortunately in the country where I live the facilities to acquire a house are remote. You have to save money to buy it or build it little by little. It is more common for people to rent their houses because they earn a very low income.

[Mpamaegbu]

Imp: I need your answers based on your current location, socio economic scenario, job security, financial backup etc. You don't need to share these details but consider this real life details while making decision.

Sounds like you are administering a questionnaire on us. However, your question cuts along the line of managerial decision. I, for one, would go for getting a house on that mortgage level you mentioned on one condition — On the condition that my wife works or is in business and that she supports the family. Otherwise, spending 40% of one's income on mortgage is too much and unreasonable. Doing that will be very difficult for one to meet up with other financial commitments. It's good to own a house but don't do it at the detriment of your peace of mind so you don't push your health to jeopardy. If you aren't getting extra cash apart from your monthly salary, don't buy a house. Just settle for a rented apartment.

[philipma1957]

Hi guys, I am trying to understand certain psychological parameters of young tech savvy generation when it comes finance with responsibility. The question is simple,

Let's assume you make 100 USD salary every month. You can buy a house through mortgage loan and your monthly payment will be 40 USD and that is a long term commitment.

But you can also take a house on rent where your monthly outgoing will be 15 USD. You are free to leave and move to another house anytime you want.

What would you do? Explain your reason.

Imp: I need your answers based on your current location, socio economic scenario, job security, financial backup etc. You don't need to share these details but consider this real life details while making decision.

I am 64 still tech savvy and have experience :

This question is not really answerable the way you worded it.

If you said

100,000 Usd salary every month based on current usd value

and

40000 usd for the home
or
15000 usd for renting I could answer it

using 100usd 40usd and 15usd give me no sense of scale  as to the amount of living I can do with my remaining amount

ie
own

100-40 = 60 usd at today prices I am broke and would lose the house.

100k-40k=60k at today prices I am loaded and not lose the house have tons  of left over money

or
rent
100-15 = 85 usd at todays prices  I am broke in a few days and would starve
100k-15k = 85k at todays prices I am  whaling .



So without context of the date and the rest of the expenses I can not give a good answer.

I can do this based on current prices in usa

1)  100 usd both ways I am broke with way
2 ) 1000 usd I would rent I could survive owning would be a fail
3)  I think 5000 or less I would rent
4)  5-10k gray
5)  10000 usd I would buy the house but it is close call to rent.
6)  10-15k gray
7)  15k or more buy for sure
8.) 100000 usd I would buy the house easy call for me.

In all cases nice home and or nice apartment.

I am older I have rented and I now own.
Both are okay.

But going broke and losing your home is worse than being evicted from an apartment.


There is a zone of if in the range of 5-15k a month income at today usa prices.

Maybe 7-15k is better. 

I think the zone depends where you live say NYC or SF or  LA vs a small out of the way place.

[krky]

First off, lets get something straight. Renting is not a waste of money. Sure, giving your money to the landlord may mean you're not investing in homeownership. but your paying to live somewhere! And as long as your paying to live, your money is being well spent. Though renting as a way of life is not something we recommend, there are a few situations in which renting is the better option.

[swiftbits]

That is based on the situation. for me, 40% is a huge takeoff from the monthly salary.
I would rather rent a house while building my asset; you can also do a lot from that 25% extra.

[arwin100]

That is based on the situation. for me, 40% is a huge takeoff from the monthly salary.
I would rather rent a house while building my asset; you can also do a lot from that 25% extra.

This is alway depends on situations and our personal likes since not everyone have the same taste of comfort since if OP is bachelor then he can just rent and just save his remaining for something more beneficial. Its so hassle to build a permanent home since its really hard to leave it without person attending especially if we are going at work while if we rent some condo or apartment we can assure that we are safe since there are so many people around and theirs a guard that can watch our belongings.

[(o)(o)ilikeboobs(o)(o)]

I would choose to pay 40% of my income to own a home in the long term. It can also be considered a good investment.
Choosing to rent a house for $ 15 monthly and thinking about going around can leave them empty-handed in the future. Moving doesn't bring us much value. We must perceive the world. Having a home we can settle down to get more jobs and focus on work. The more years we have experience in an industry, the higher our income potential and the sooner the house will be paid off.

[wack slacker]

My answer is that I would buy the house if it is the house that I have dreamed of for all my life. If my salary is compromised to cover my daily needs, I could find other ways to earn extra money to support expenses. But I would have the security of having my own home.

I have seen this example throughout my life but unfortunately in the country where I live the facilities to acquire a house are remote. You have to save money to buy it or build it little by little. It is more common for people to rent their houses because they earn a very low income.

Real estate prices can increase at any time so buying a home is also a way to invest for the future. You must own a house, a place to live for the whole family if getting married happens to you.
Moving is also a way to satisfy yourself, but the fixed rental cost of 15% of total income is quite high. It doesn't provide the same long-term benefits as buying a house.

[k@suy]

I am a bit of a traditionalist when it comes to property... because I was taught from a young age that it is of utmost importance that you own the roof over your head. My Dad has always said, "Why make someone else rich by paying him rental, if you can use that to pay for your own roof over your head"?

The problem is that times have changed and the younger generation are faced with high unemployment and very high property prices. The Banks does not give 100% guarantees anymore, so most people have to fork out huge deposits and they simply do not have that. (They also do not have assets to put up for guarantee, so they have to take out loans to pay the deposit too)

The rental scene is very competitive and if you are clever, you can stay in some fancy house that you would never have been able to buy for yourself and you can quickly move to a new place, if the rent goes up too much. (That is to say, if you are not contractually bound in a long-term rental agreement)  

You're certainly right about it mate I mean when we were going to compare the life of the old ones to ours today they really said that the price of this item is just only like this, like that and today it is very expensive. So in my own opinion since I am just a minimum wage earner and does not have enough savings to put a roof over my head guaranteed mind this time I'll go to live in rental house. I mean I'd still wanted to have my own house but for now investments or assets is on top of my priorities today.

[Renampun]

...

Things like this have been a debate between me and my husband, whether we must rent a house or pay in installments...

but after going through debates and consultations, we decided to repay the house. renting a house sounds cheap and comfortable at first but the house rent goes up every year while the house is still owned by other people.

Installing a house sounds heavy and scary, but in the next few decades, you can earn big profits from the increase in the price of your property.

[DrBeer]

Hi guys, I am trying to understand certain psychological parameters of young tech savvy generation when it comes finance with responsibility. The question is simple,
Let's assume you make 100 USD salary every month. You can buy a house through mortgage loan and your monthly payment will be 40 USD and that is a long term commitment.
But you can also take a house on rent where your monthly outgoing will be 15 USD. You are free to leave and move to another house anytime you want.
What would you do? Explain your reason.
Imp: I need your answers based on your current location, socio economic scenario, job security, financial backup etc. You don't need to share these details but consider this real life details while making decision.

From personal experience - up to 40 years old I changed housing. In the beginning I rented - it was more profitable, and there was no connection to the place of residence. During this time, he changed 5 apartments. After the children grew up, the business is working steadily - I bought a house in the suburbs, an apartment. Recently invested in tourist real estate in the near abroad.
It makes no sense in the early stages of formation to "tie" yourself with real estate and geographically and financially. Therefore, the first stage is rent, the second is the purchase of housing, the purchase scheme depends on the financial condition and capabilities. It is difficult to say more precisely - the conditions in different countries are very different.

[dmamigo]

Given the scenario, based on my current situation I prefer and I have to rent an apartment rather than buying one because situations are getting worse and with increased expense due to rise of cost of the essential products and needs it is important to save as well. I am focusing a little bit more on saving nowadays due to the pandemic which is extremely uncertain.
I would love to buy or build a house so that the increasing rental cost does not affects me for lifelong.

[Kong Hey Pakboy]

Given the scenario, based on my current situation I prefer and I have to rent an apartment rather than buying one because situations are getting worse and with increased expense due to rise of cost of the essential products and needs it is important to save as well. I am focusing a little bit more on saving nowadays due to the pandemic which is extremely uncertain.
I would love to buy or build a house so that the increasing rental cost does not affects me for lifelong.

Buying a house is the ultimate goal and you can't rent forever, you might be right about the expenses these days but it will only get more expensive as time goes on since real estate is an appreciating asset.

[Sithara007]

I have a different opinion when compared to most of the posters here. At least where I reside, it actually makes sense to rent a house. Because as per my calculations, the annual rent is around 1/30th of the amount that is required to purchase a house. Obviously owning a house is everyone's dream, but here it makes sense to delay that decision by a few years. My plan is to save a certain amount for next 10-15 years, so that I could purchase a house mostly with down-payment. In places where the rent is quite high, it won't work though.

[meanwords]

Depends on the location. Here in the Philippines, With a $100, you won't be able to pay for you own house in your lifetime, much less even budget that properly if you have a family (the average salary in the Philippines is $300 btw), but you can surely survive on your own as long as you budget it properly. It would be better to rent and invest the remaining money somewhere else where it will grow.

Let's say you took that mortgage for 40$ a month, you're only left with $60. You need to budget that $60 for your food and other necessities like water, electricity, gas, travel cost if you work somewhere, etc., that will only give you little money for savings and other emergency funds that you might need. It's not like a house is a necessary thing to have. With your salary, it'll only be a liability than an asset because what would happen if something bad happen and you don't have the money for that? it's going to be a disaster. Also, take note of the maintenance cost for that.

If you rent, then you would be given more room to work with your money. Let's say you're left with $25 with everything paid. That's $25 of money for savings account, emergency funds, and even investment funds.

As for my experience, it's pretty safe renting because of the neighbors. They act as some sort of security for my room (besides my hidden security) and I am given enough room to put all my stuff and small enough room for maintenance.

[Argoo]

I think that a lot depends on how profitable the loan you specified in your country is. If the terms of the loan are acceptable, then I would choose a loan from these two options. Let me explain why: when you make a loan and rent a house, you still pay your money, although the rent is four times cheaper. However, by paying off the loan, you are actually acquiring the house as your own property. And no matter how much you pay the rent, the house is still not yours. There is also a third option: pay rent and collect money for the house. Everything here needs to be calculated, as well as other circumstances should be taken into account - reliability and prospects of work, family and other circumstances.