Is renting an inevitable waste of money?

[Mr. Magkaisa]

Building a new house costs a lot of money, even someone with a monthly passive income still chooses a bank loan to build a house instead of saving for several years, the basic items for building a house are increasing every year, but it is recommended that you keep saving for the purpose of building a house because we have to setting limits on rents for less than 2 years, Op has lived 4 years and spent $25k in rent which is equivalent to the cost of a new house for a minimalist size.

one should know that builidng house from scratch also require time, you couldn't immediately live in the house you should wait until it gets built first then you could live in that house afterwards, but where are you gonna live in the meantime? of course you'd be renting house for about 1 year and that's already massive waste of money.
having second hand house is fine if it's relatively cheap enough and good enough, meanwhile you're collecting money for building your dream house, having temporary second hand house could also save you from the costs of renting since I think the price of the house rarely deprecating.

   -     I'll just add to what you said mate, for me, if I were the only one to follow, I would prefer to buy a house and land that is secondhand or foreclosed because I can save more in this method.

Also, if you apply for the housing loan under the government, there are too many requirements that will be asked before you can qualify for this program, unlike the surplus houses, the approach is more practical for me.

[S A KHAIR]

It is not necessarily a waste as long as it brings benefits and convenience to your work and life. Nowadays, owning a house is extremely difficult for young people, so renting is a good solution when starting a business because we may have to move a lot to get a better job. That is not wasted.

[xSkylarx]

Is renting an inevitable waste of money?

Renting is never a waste of money; it is a survival trait and an important factor of life for every individual in every aspect of the entire world. There are several purposes to renting.

• Home rents for a personal abode and roof to sleep every day
• Business purposes e.g studio, hall, mart etc and more

And both purposes are pivotal and unavoidable if you are a business owner or an individual because irrespective of class, you need a roof above your head. Meanwhile there is a scenario where renting becomes a waste of money; and this is when you rent a home above your means of livelihood.

For example, if you are renting, your job must be able to pay your rents comfortably every month without you struggling. If you struggle to pay rents; then you are wasting money and not renting.

When you don't decide timely that this will be a big drain on your saving. Then this will be surly waste of money
Once my finance teacher said - never purchase a house - live your life on the rental. But I didn't like his suggestion and I would like to have my own space be it small or big. But its a treat being a house owner.

The point of your teacher is that if you purchase a house, invest it in business or build one, and if your business is successful, you can use the profit from it to buy a house. Though others have no preference on buying a house as they cannot afford it, that is why they stay renting even if they know that it is really draining their money. They don't have a choice, so unless someone will give them a house they can live in, that would be good for them.

[trendcoin]

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On top of that, finding the ideal house as a renter is almost impossible; there's a lack of housing, and rents are extremely expensive and unreasonable at the same time. We had a difficult time finding a house recently, and it's far from ideal. There is now a new government-funded loan program that is about to start, funding up to 75% of the loan interest-free while the rest is funded by private banks and is subject to a relatively low interest rate. This led me to think about taking a loan and purchasing an average two-bedroom apartment, but I have the concerns that I voiced earlier.

I don't know what country you live in, but this is a great government-funded loan program and I think you should definitely take advantage of it. A very low credit government support program was announced in my country a few months ago for first-time home buyers. However, I must state that the 75% interest-free loan is indisputably a much more advantageous opportunity.

If you buy your own house; you will avoid paying rent, your house will gain value as house prices increase every year due to inflation, you have the freedom to make changes in your house as you wish, you can leave your house as a legacy to your children. I think owning a home has more advantages than being a renter.

[EFS]

This is one of the most discussed topics of the last years. It actually depends on the economic situation in the country. Sometimes rents are low relative to inflation and salaries. Sometimes the house prices are so high that it's unreasonable to put all the money to a house. The situation is different in developed countries naturally, but in countries with fragile economies the situation may change depending on the conjuncture.
I agree that it's important to own a house, but if house prices and loan rates are very high you can live in rent instead of making such a long-term investment.

[lienfaye]

Is renting an inevitable waste of money?

Renting is never a waste of money; it is a survival trait and an important factor of life for every individual in every aspect of the entire world. There are several purposes to renting.

• Home rents for a personal abode and roof to sleep every day
• Business purposes e.g studio, hall, mart etc and more

And both purposes are pivotal and unavoidable if you are a business owner or an individual because irrespective of class, you need a roof above your head. Meanwhile there is a scenario where renting becomes a waste of money; and this is when you rent a home above your means of livelihood.

For example, if you are renting, your job must be able to pay your rents comfortably every month without you struggling. If you struggle to pay rents; then you are wasting money and not renting.

When you don't decide timely that this will be a big drain on your saving. Then this will be surly waste of money
Once my finance teacher said - never purchase a house - live your life on the rental. But I didn't like his suggestion and I would like to have my own space be it small or big. But its a treat being a house owner.

The point of your teacher is that if you purchase a house, invest it in business or build one, and if your business is successful, you can use the profit from it to buy a house. Though others have no preference on buying a house as they cannot afford it, that is why they stay renting even if they know that it is really draining their money. They don't have a choice, so unless someone will give them a house they can live in, that would be good for them.

I agree. If you need to choose between buying a house and starting your own business, I will choose the latter first because it's a way of having a passive income. It's not wise to buy house then you don't have source of income or the location is far from where jobs are indemand.

Anyway, renting will only be a waste if you chose to rent even you're capable to buy your own house and won't struggle after doing so. We have our own reasoning and as long as it is valid on why you opted to rent instead of buying your own, then it's your choice.

[WatChe]

The point of your teacher is that if you purchase a house, invest it in business or build one, and if your business is successful, you can use the profit from it to buy a house. Though others have no preference on buying a house as they cannot afford it, that is why they stay renting even if they know that it is really draining their money. They don't have a choice, so unless someone will give them a house they can live in, that would be good for them.

I have seen businessmen in my country never buy or build there own houses rather they prefer investing that money in some business to get profit. That's how there cycle moves on since they consider buying a house like locking your money for an indefinite period of time. For businessmen living in rented house is first preference. Secondly if you don't have money then question of buying new house is ruled out.

[Sir Legend]

Renting money is an ugly thing that we have to leave behind, it's impossible for us to rely too much on renting money, it's better to live simply and according to ability, the temptation to live a luxurious lifestyle does make anyone try to follow people who like to show off on social media, but we must understand that not all the things that other people do we can do.

[tread93]

If you're young and haven't inherited a property from your ancestors, chances are that you're forced to rent. Personally, I've been renting for over 6 years and have been living with my girlfriend for the last 4, sharing rent and utilities. Overall, we've both spent over €25,000 together, and after spending all this money, you're practically left with nothing and may be subject to looking for a new house at any moment.

The average rent for a one-bedroom apartment is between €300 and €400 at best; thus, I was thinking that taking a loan is as costly as paying rent per month, but after 15-20 years, you end up with a house. My main concerns are the following: First, if you're in a long-term relationship like myself, you can never be 100% sure that you'll be with that person in 20 or 30 years from now, which might prevent you from opting for a loan. Secondly, you need to be certain that the location or city of the property to be bought is convenient for future job offers and so on. Thirdly, because a loan is a many-year commitment, there's no guarantee that you'll be able to afford the monthly payment 15 years from now.

On top of that, finding the ideal house as a renter is almost impossible; there's a lack of housing, and rents are extremely expensive and unreasonable at the same time. We had a difficult time finding a house recently, and it's far from ideal. There is now a new government-funded loan program that is about to start, funding up to 75% of the loan interest-free while the rest is funded by private banks and is subject to a relatively low interest rate. This led me to think about taking a loan and purchasing an average two-bedroom apartment, but I have the concerns that I voiced earlier.

Such a great question. There is no direct answer for this because the topic is entirely subjective on one's financial state. You have been forced to rent due to high costs due to inflationary pressure and other factors (that are entirely outside of your control, given your circumstances).

In the US Private Equity has done a full on rug pull on the housing market for the millennial generation and all generations before them. This is because they foresaw all of this coming. The collapsing of the banks, and all markets. They are smart, and ruthless, and it has always been their goal to make us their slaves.

I was fortunate to be ahead of the game and work hard in my early 20s to be able to afford a house 5 years ago. Now what I pay for my mortgage basically is what others are paying for rent living in an apartment. I hope to not come across as bragging, because I'm not. I'm glad that I listened to my wife because I wanted to continue to rent for the foreseeable future but was convinced otherwise, that and I wanted to make my wife happy.

Just know that you can overcome whatever the price is to buy whatever home you want, because today you're still breathing. You're blessed and your greatest assets are your heath and the ability to generate as much income as you possibly can overtime

[Iroh]

Renting money is an ugly thing that we have to leave behind, it's impossible for us to rely too much on renting money, it's better to live simply and according to ability, the temptation to live a luxurious lifestyle does make anyone try to follow people who like to show off on social media, but we must understand that not all the things that other people do we can do.

What are you going on about? And what do you mean by renting money? Surely you must have meant renting apartments or houses.  One might be inclined to think you didn’t even read the topic or some of the replies gotten on the thread before jumping on it and adding your opinion.

I do agree with your point though. It’s better to live according to your ability and means and not going broke trying to live a luxurious fake lifestyle that’s bound to ruin you in the long run.
Also, we shouldn’t believe what we see on social media as most normal people(not rich celebrities)on social media tend to live a fake life. It can be depressing if you fall prey to the notion that peoples lives are better than yours with what you’re seeing on the gram.

[slapper]

This is one of the most discussed topics of the last years. It actually depends on the economic situation in the country. Sometimes rents are low relative to inflation and salaries. Sometimes the house prices are so high that it's unreasonable to put all the money to a house. The situation is different in developed countries naturally, but in countries with fragile economies the situation may change depending on the conjuncture.
I agree that it's important to own a house, but if house prices and loan rates are very high you can live in rent instead of making such a long-term investment.

In the long run, I think it's beneficial to own a home, but I recognize that not everyone is able to. The health of a nation's economy heavily influences the decision of whether to rent or buy. It's crucial to consider not only the current state of the economy, but also its potential evolution. For me, renting a place to live lacks the stability and security that comes with owning a home. But I understand that getting a mortgage and a down payment together may be a lot of work, especially for those who don't have a secure income. Do your homework and weigh your options before making such a major investment. Finally, home is more than simply four walls; it's how you decorate those walls that determines whether or not you feel at home there.

[virasog]

It is not necessarily a waste as long as it brings benefits and convenience to your work and life. Nowadays, owning a house is extremely difficult for young people, so renting is a good solution when starting a business because we may have to move a lot to get a better job. That is not wasted.

Yes, renting is a way the young entrepreneurs to start their businesses if they do not have enough funds at the start of their business journey. Getting rented houses or sometimes rented machinery may be extremely helpful.

Also, if you have a lot of extra resources, like land, plot, and shop you may put them on rent and can generate passive income. So it is a win-win situation for both of you, the one who receives rent and the one who acquires the object and pays the rent on it.

I believe that if you have extra resources and you do not lend them, then you are missing out on an opportunity to make extra income.

[Uruhara]

It is not necessarily a waste as long as it brings benefits and convenience to your work and life. Nowadays, owning a house is extremely difficult for young people, so renting is a good solution when starting a business because we may have to move a lot to get a better job. That is not wasted.

Yes, renting is a way the young entrepreneurs to start their businesses if they do not have enough funds at the start of their business journey. Getting rented houses or sometimes rented machinery may be extremely helpful.

Also, if you have a lot of extra resources, like land, plot, and shop you may put them on rent and can generate passive income. So it is a win-win situation for both of you, the one who receives rent and the one who acquires the object and pays the rent on it.

I believe that if you have extra resources and you do not lend them, then you are missing out on an opportunity to make extra income.

to decide which is better between renting a house or buying a house must be based on what type of work we are entering to make money. if it is a type of permanent job that might last for tens of years and even retirement, such as being a Civil Servant or an employee in the government. then of course buying a house is the best. but for those who have a non-permanent job or simply don't have a measurable long-term income, then renting may be a better choice. because it is possible that the person has to move if he changes jobs or changes jobs.

but when it comes to making a more mature financial decision for the future, it is indeed better to buy a house. if we don't have money then making a loan can be done. we borrow money to buy a house in cash and not in installments. because the price of a house that is paid directly will be cheaper than buying a house by means of a credit system.

Even if one day we have difficulty paying loan bills, we can just rent out a house or room in the house to someone. and we collect the money to pay loan installments.

because at least we already have a home. but if we continue to rent or rent a house, the rent that we spend every month will not make us have a house to live in at that time. and we just like keep giving money to the owner of the house we live in. then wouldn't it be better for us to make a loan of money and buy it for a house. and then we can rent out part of the house to pay off loan repayments that we have borrowed. but everything will indeed return to certain situations and conditions. because not all situations can do the same thing.

[Obari]

There is now a new government-funded loan program that is about to start, funding up to 75% of the loan interest-free while the rest is funded by private banks and is subject to a relatively low interest rate. This led me to think about taking a loan and purchasing an average two-bedroom apartment, but I have the concerns that I voiced earlier.

You've been with this very girl for over four good years and you guys have been loving together and even share utility bills and you guys are still also in a very serious relationship?
Mehhh I don't know what country you are but if is in my country, then I'm wifying her and I don't care what people have to say. But in the other hand, character also matters alot and from the tune at which I read this post, it seems there is something OP isn't ok with like character or something and since you guys aren't married yet, it isn't late yet to address this issue as truly communication matters alot in every relationship.
On the other hand, I barely would advise someone to take a loan in buying a house because I don't see reasons to do so but since the loan is an interest free one, then you shouldn't hesitate to get one if it can cover the cost of getting the two bedroom apartment you desire.

[Kodok Bencot]

The thing we have to think about is that renting money will not make us rich, renting money is a wasteful thing that makes us have to immediately expand debt, rent money for things of value and invest so that the interest we have to pay can be covered from the profit when we get a profit from investment.

[Pierre 2]

In location I live in Türkiye rents are above minimum wage. And many people (like %60-70 of whole country) lives on minimum wage. So its even more harsh condition here than some western countries. I tend to be libertarian of such issues and believe markets are capable to show it. But in a country with huge inflation even markets are in shock. I think OP has better standards cause nearly %0 rate credit given by bank is cool. I feel like banks should be encouraged to give low rate "rent only" credits to people to support them. Tax breaks and such given in return. (I dislike banks but I can't find any proper solution)
Rent is obviously waste of money. I wish all people could have parents to donate them a flat.

[Dr.Osh]

In fact, renting is an alternative to use when you can't afford a property. there are drawbacks and disadvantages of that. however, renting for primary needs is not included in the waste even though the best thing is to manage money to own your own property if you can afford it.
regarding bank loans, it depends on you, if you can afford it, maybe it can be better than continuing to rent. You might try to sell the apartment you own when you can't afford it anymore. however, the other alternative is that you try to find a cheap property, then collect a little money to buy a new property or maybe an apartment. However, there are many alternatives that you can choose from, it just depends on your circumstances.

[wmaurik]

It is not necessarily a waste as long as it brings benefits and convenience to your work and life. Nowadays, owning a house is extremely difficult for young people, so renting is a good solution when starting a business because we may have to move a lot to get a better job. That is not wasted.

Renting a house to live in to run a business is not in vain as long as it has a really clear function. But if you are able to buy a house in a very strategic place where that location is always filled with lots of people it is also very good because apart from being able to use it yourself it can also be rented out to other people who need it if someone has an old house that is still suitable for habitation.

So it's true as you said that in terms of housing it will never be redundant even if you don't use it yourself after you buy it, because it can still be used by other people in the form of a rental so I think these two solutions are equally good for young businessmen who are developing business at this moment.

[Pamadar]

There is now a new government-funded loan program that is about to start, funding up to 75% of the loan interest-free while the rest is funded by private banks and is subject to a relatively low interest rate. This led me to think about taking a loan and purchasing an average two-bedroom apartment, but I have the concerns that I voiced earlier.

You've been with this very girl for over four good years and you guys have been loving together and even share utility bills and you guys are still also in a very serious relationship?
Mehhh I don't know what country you are but if is in my country, then I'm wifying her and I don't care what people have to say. But in the other hand, character also matters alot and from the tune at which I read this post, it seems there is something OP isn't ok with like character or something and since you guys aren't married yet, it isn't late yet to address this issue as truly communication matters alot in every relationship.
On the other hand, I barely would advise someone to take a loan in buying a house because I don't see reasons to do so but since the loan is an interest free one, then you shouldn't hesitate to get one if it can cover the cost of getting the two bedroom apartment you desire.

Good communication to address this particular concern, as you think about it if you are serious with each other and you are renting place to stay that amount of money is almost same with the amount you need to paly when loaning a house.

If you are doubting each other then make sure to have a terms and condition a contract type in case something not good
happen to both of you and you decide to separate from each other , you can sell the property and let someone continue
paying it and share the money in an equal manner.

[CarnagexD]

It is not necessarily a waste as long as it brings benefits and convenience to your work and life. Nowadays, owning a house is extremely difficult for young people, so renting is a good solution when starting a business because we may have to move a lot to get a better job. That is not wasted.

Renting a house to live in to run a business is not in vain as long as it has a really clear function. But if you are able to buy a house in a very strategic place where that location is always filled with lots of people it is also very good because apart from being able to use it yourself it can also be rented out to other people who need it if someone has an old house that is still suitable for habitation.

So it's true as you said that in terms of housing it will never be redundant even if you don't use it yourself after you buy it, because it can still be used by other people in the form of a rental so I think these two solutions are equally good for young businessmen who are developing business at this moment.

Renting is definitely not a waste of money. For me, it's apart of good planning. Usually people who choose to be independent start in renting a place temporarily then buy their own upon having enough savings. Also, there some people I know who don't prioritize having their own job and maintains renting an apartment because it 's more convenient for them.