Own a house or rent one? Quick survey!

[AicecreaME]

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.

Personally, I will opt to buy a house rather than rent provided that my job location is fixed. I really think that having your own space is a nice investment especially because real estates' price go higher as year passes by. However, it really depends on your situation and preferences as well.

If your job requires frequent relocation, renting is the best option for you. It wouldn't be wise for you to buy a house and lot if your work demands you to go from one place to another. I just can't see the point of having one then eventually you'll just abandon it. You can't savor your hard-earned money with that case unless you will let other people rent it.

But if your financial status and work nature can handle having a house construction, it would be best to go get a house instead. It will save you a lot of money in the long run. In addition, you'll have no problem about landlords and co-tenants. You will have your peace of mind and privacy at best compared when renting. Another thing is if you plan to have your own family in the future, it's better to have your own house for your kids welfare.

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[Snappycoco]

I believe most of the people here would prefer renting a house just like any other influencer who talk in youtube. They even prove it by giving advantages however, for me personally it is quite good to have a decent and worry free house. Worry free of monthly dues and anytime you could possibly be cast away.

[Ultegra134]

That's a tough one. I'd prefer it if I had a house, you have the freedom to perform any changes you wish, renovate it, build a pool in the backyard and so on, while you are responsible for any damages made (My landlord still hasn't fixed some faulty plumbing where I live).

However, it's an expensive procedure, I mean, 40% of your income will directly go to loan payments for approximately 25 years. My main concern is that a lot can change during these 25 years, on top of the interest, which will add on top of the purchase price. Unless we're talking about purchasing a small apartment, which wouldn't cost a fortune.

It also depends on your age, I wouldn't be interested in buying a house at 25, I'd prefer renting.

[Lorence.xD]

Owning a house definitely, the land is yours and it appreciates over time and you don't have to worry about monthly rent since your only worry is the bills in your house plus if your land is big enough, you might be able to rent the extra space to other people and have your own passive income.

[Gyfts]

So owning a house or renting, this story comes to mind: https://www.businessinsider.com/blackrock-wall-street-investors-buy-homes-neighborhoods-single-family-rental-2021-6

This was not really a scandal, but it did make rounds last week because the story is that a wall st. firm is buying up homes at a high mark, paying out like 1.2x or 1.5x the home's value. Now, some have speculated that a housing bubble was beginning to form with people dumping their investments, pulling out of liquid currency and putting it into real estate, but the idea here seems to be a a giant firm buying up tons of homes in a local community so that it can force people to rent.

Two things to consider: Renting obviously is a bad economic investment, paying a mortage is better in the long run, but when a firm worth billions can outcompete the average home buyer, driving up prices, does that force you to rent?

Another thing, say you are forced to rent because of out of reach prices, does that mean Blackrock now has local monopolies in communities where they bought up all the real estate?

[ilovealtcoins]

Evaluate the home you plan to buy such as its location to your workplace, neighborhood characteristics in the area, and future property value. Answering all of the above will tell you if you should buy a house with your $40 monthly income or not?
Another thing is that real estate and each person's salary always increase over time, so if you buy a home, you will have the advantage of paying off your debt faster over time. You eventually get the house and your home value will also increase.
If you choose to rent a house for 15$, you have a good chance of finding a place that suits you best to stay. Next, you will also have to accumulate money enough to buy a house or choose an installment method. So consider carefully so as not to miss the opportunity.

[Reid]

$400 a month, $100 on the mortgage then bills, food, etc.
I once experienced renting and the problem is, it's not yours. There will always be a scary part where the owner may have some reasons to take you out.
A family member wants it, a friend or just someone more important than you. I don't like that to happen especially when you have kids and got a lot of stuff to carry to a new house.

When you have your own house, you get old you still have a roof to settle and the kids can buy their own once they are old enough.
Security. You can do anything with your own house while with rent, you will need the permission of the owner.

[ChiBitCTy]

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.

The truth is this entirely depends on what part of the world or what part of your country you live in.  Here in the United States it makes more economical sense to rent vs buy and vice versa, some states/cities it makes more sense to own.  If the city/state you live in makes more sense to rent, than investing the 25 dollar difference that you are keeping in your pocket vs putting towards your mortgage can go towards your retirement/investing etc.  So the answer is it entirely depends on ones specific location.

[Ultegra134]

$400 a month, $100 on the mortgage then bills, food, etc.
I once experienced renting and the problem is, it's not yours. There will always be a scary part where the owner may have some reasons to take you out.
A family member wants it, a friend or just someone more important than you. I don't like that to happen especially when you have kids and got a lot of stuff to carry to a new house.

When you have your own house, you get old you still have a roof to settle and the kids can buy their own once they are old enough.
Security. You can do anything with your own house while with rent, you will need the permission of the owner.

As long as you have a contract, you're covered for that time period at least. However, it did happen to me once, and was a tedious process. It can suck if you have a terrible landlord, mine was, and had severe issues. The A/C was never worked properly while the boiler exploded due to it being completely covered in rust.

It's a great feeling to have your own house, however, if you're lucky enough and rent a proper house with a decent landlord, you should be good for quite a few years.

[Ucy]

I actually prefer to rent, not with loan though.
I doubt I could live in a house I built with loan if the house isn't earning me more income.
Besides it's quite risky to build houses that can't easily be moved around to other locations in time of uncertainty.
I never really liked large homes for me and family. Better to build companies where people can be employed.

[FanEagle]

Own one, definitely own one. Why? Simply because when you are paying rent, you are making someone else rich, they bought it and now they are not using it so they are basically making free money from your own hard work. If I own my own house and then pay mortgage to bank that would mean that I would be capable of owning something of my own and working towards making myself richer and not someone else's.

Same goes for everything in life, if my hard work makes me richer than it is fine, if my hardwork makes someone else richer then I am not planning on doing that for too long if I can avoid that. Even working is the same, I used to work for a company, then I quit because they were treating us horribly and paying us very little, now I am a freelancer and yes I do work for other people still but I pick who I work for, everyone I work with are amazingly great people, anyone who treats me bad? I just quit.

[Smartvirus]

There is nothing more important or of the more advantage than actually owning a thing. When its yours, its yours. All you need to do is, get the perfect structure and in the best location for which you feel you are the more comfortable. Yes, you might be loosing some cash that is significant to some extent but then, you suffer this loses for a while after which, it goes away and your now free with a new property. A property you could sell off and get another one If you please or even renovate to your taste as tome changes.

Renting on the other hand, it stills your freedom and keeps you in thoughts for the rest of your life because, you've got depth to pay. Any day you don't meet up with your rent bills, your most likely to move out. It goes on and on all through your life time until you actually decide to own a house. So, 2hats the point in choosing rentals when you can afford to actually own a house? It just doesn't add up. Should owning be the end point and you can actually afford it at the moment then, kick start the process. The earlier, the better.

[The Sceptical Chymist]

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

I'm not in that demographic, but hell, that never stopped me from replying to a post before and it ain't gonna stop me now. 

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.

Hopefully you're just using 100 USD/month because it's a nice, round number and not what you make or think most members here make if they work a real-life job.  Whatever the case, I'll get to the point of my response: I fully realize that owning a home is as much an investment as it is a place to live, and I respect that.  Personally, however, I would never buy a house because a house is an investment that you constantly have to pump money into, and you've got property taxes, taxes on everything you buy for the home, homeowner's insurance, usually higher utility bills, and all sorts of expenses--in addition to the need to do everything from mow the lawn to shingling the roof when it needs shingling.  On top of all that, you can't just up and move easily like you can when you rent.  If, for some reason, your neighborhood goes to shit you're either stuck there or you have to go through the hassle of selling your home.

If I wanted to invest in real estate, I'd buy REIT stocks.  They provide exposure to the market as well as providing excellent income through dividends (usually monthly, too).  It is an absolute pain in the ass to own a home, which I've learned from people who own homes.  Yeah, paying rent doesn't give you any equity in the domicile in which you're living, but I'm more than OK with that.  I'd prefer to have a landlord responsible for shoveling snow and in general taking care of the property where I live.  If I've got to pay a premium for that or miss out on massive gains in the real estate market, so be it.

Not only do I believe all of what I've written above in theory, I've walked the walk so to speak and have never owned property.  Never will.

[Viscore]

I actually prefer to rent, not with loan though.
I doubt I could live in a house I built with loan if the house isn't earning me more income.
Besides it's quite risky to build houses that can't easily be moved around to other locations in time of uncertainty.
I never really liked large homes for me and family. Better to build companies where people can be employed.

My decision will greatly depend from my source of income. Having to take a mortgage loan that will take 20-25 years let's say is very hard for someone who has only been making minimum wage income. But if you have a stable job with high paying salary then it's really a wise decision to have your own home as long as you can live along with your family.

Honestly, i prefer to take a mortgage loan so i can have a home of my own because renting for such long years would mean a total waste of your money and yet in the end the house would never be yours. But it all depends in your source of living if you can sustain it together with those basic needs of your family that should always come first.

[xiboothrezi]

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.

I chose the second option. I choose to rent a house, while saving to buy or build my dream home. The reason is simple, I live according to my ability, because I can't afford to buy a house, so I won't force myself to take credit. After all, with a home loan, the price will definitely be much more expensive than the initial price.

it's about the principle, there are some people who choose credit, it's the right of each.
I just ordered to always have self control, don't follow a lifestyle that we haven't been able to achieve.

[Stedsm]

In India, it is said that if a family manages to live for >11 years at a single place (i.e.; home) on rent, then they can claim such property based on some provisions made available to them (if there's no contract like they'll need to leave that place after 11 months or whatever determined in the contract).

However, someone who is a die-hard traveller may choose the best option of renting many different homes every month by visiting a new place every time. That's for a traveller or the one who is not responsible to fulfil any family needs (if he/she doesn't have one). But someone who's got responsibilities should rather go to have his own house IF his job is not related to changing places.

Nowadays, I'm hearing of heavy deposits based flats available in some parts of India which saves the person a lot rather that going for rent. Don't have much better knowledge about it as I never went for such types and currently have an own place.

[cabron]

In India, it is said that if a family manages to live for >11 years at a single place (i.e.; home) on rent, then they can claim such property based on some provisions made available to them (if there's no contract like they'll need to leave that place after 11 months or whatever determined in the contract).

However, someone who is a die-hard traveller may choose the best option of renting many different homes every month by visiting a new place every time. That's for a traveller or the one who is not responsible to fulfil any family needs (if he/she doesn't have one). But someone who's got responsibilities should rather go to have his own house IF his job is not related to changing places.

Nowadays, I'm hearing of heavy deposits based flats available in some parts of India which saves the person a lot rather that going for rent. Don't have much better knowledge about it as I never went for such types and currently have an own place.

Seem a game for rich people who are in the government position. Living a place for a long period of time and then register it as my own. That's easy to do if you have the money. Different countries have their own laws.

Money is always the problem when it comes to having a comfortable place. The only option for us if we don't have money is to live on the streets. The religious faction where you belong won't even bother to look at you when you sleep beside their church.

[Kasabus]

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.

I chose the second option. I choose to rent a house, while saving to buy or build my dream home. The reason is simple, I live according to my ability, because I can't afford to buy a house, so I won't force myself to take credit. After all, with a home loan, the price will definitely be much more expensive than the initial price.

it's about the principle, there are some people who choose credit, it's the right of each.
I just ordered to always have self control, don't follow a lifestyle that we haven't been able to achieve.

I understand that you don't want to live a complicated life just because of a long term loan when you can live simply just by renting your home.

However, for a family man, our concept might be different from yours. We dream to have our own house at the end of the day so we'll no longer rent for the rest of our lives. If i can have a stable job and a well paid income, then why not? I'll take the risk of taking that mortgage loanvevenbif it takes long years as long as my own family will also benefit from it in the future.

[awik p]

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.

I chose the second option. I choose to rent a house, while saving to buy or build my dream home. The reason is simple, I live according to my ability, because I can't afford to buy a house, so I won't force myself to take credit. After all, with a home loan, the price will definitely be much more expensive than the initial price.

it's about the principle, there are some people who choose credit, it's the right of each.
I just ordered to always have self control, don't follow a lifestyle that we haven't been able to achieve.

I understand that you don't want to live a complicated life just because of a long term loan when you can live simply just by renting your home.

However, for a family man, our concept might be different from yours. We dream to have our own house at the end of the day so we'll no longer rent for the rest of our lives. If i can have a stable job and a well paid income, then why not? I'll take the risk of taking that mortgage loanvevenbif it takes long years as long as my own family will also benefit from it in the future.

I also understand your thoughts, where I feel it too, when you are married, of course the house becomes a basic need that must exist, especially if we already have children. Owning a house is like owning a country, where we can feel the freedom to establish our own rules in our homes, because I am the head of the family

[ethereumhunter]

If you can pay a mortgage loan to buy a house, I think that will be good for you, even if you need to do that for more than 10 years because you will have your own house after that years. On the other hand, maybe rent a house will not too expensive for you, but if you can allocate your money to buy a house, you can have a house without paying the fee of rent a house anymore. But if you have another plan by renting a house, I hope you can thinking more to find which will be good for you and calculate your money before you decide.