Is renting an inevitable waste of money?

[lienfaye]

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.

I assume this is a housing loan right? Then you can take a loan under your name so you have the full right even both of you don't end up together.

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.

That's important. Don't settle in place that is far from where you're working (or less work can be found). It's not wise to find a home faraway from work then it will cost you huge budget for transportation not to mention the time spent for travelling.

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.

This is understandable but if you opted to keep on renting instead of getting your own you'll not gain anything in the future yet you spend much money. That's why you need to have plan and get a loan based on your capability to pay. In this situation stable income is really necessary.

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[autumnleaf]

For some people who reside in a rural area but choose to work in a metropolis, renting is not a waste of money. Renting is advantageous for single people since they can rent a single bedroom for a reasonable monthly fee. In contrast, it can be difficult for a family man to set aside enough money from his salary to cover both his rent and other monthly expenses.

[19Nov16]

Many people rent money and only use it for pleasure such as consumption, hobbies and so on, if we are used to doing this then it is appropriate for us to stop it immediately, it is better to rent money for productive things such as investment, many investment choices and in my opinion what is becoming a trend the best right now is bitcoin or altcoins.

[Fesatmas]

This depends on how our conditions are when renting something, be it a house or something else. Because in some cases renting a house is the best choice when we go somewhere, for the purpose of working, studying or something else. It depends on our needs in my opinion.
I am also one of those people who often rents a house, yes I remember the last time I rented a house when I worked somewhere far from where I live. So I calculated how much I spent on transportation to get to work and how much I spent on renting a house, and it turned out to be less than having to go home alone. Time is also a consideration, because when we rest we will be more awake and not travel too long.

[xSkylarx]

For some people who reside in a rural area but choose to work in a metropolis, renting is not a waste of money. Renting is advantageous for single people since they can rent a single bedroom for a reasonable monthly fee. In contrast, it can be difficult for a family man to set aside enough money from his salary to cover both his rent and other monthly expenses.

Advantage if you are living away from the city as you can have a roof while away from your home but it is more advantageous if you own one. Also, there are more job opportunities in the cities than in rural that is why you need to go but the real problem is how do you own it? Assume you've been renting that apartment for nearly 15 years; since you don't own it, do you continue to pay for it or continue to rent it? Or you plan to buy an apartment on your own as you can save rent and also you can give it to your grandchildren in the future. The problem is that it is very expensive that not everyone can afford it so they don't have a choice just to pay rent.

[Fivestar4everMVP]

For me, I've been paying for rent since 2013, I dropped out of school so this made me start travelling and hustling for money early, we are now in 2023 and by April this year, my yearly rent will be due and I will have to pay for another 1 year, this means that I have been paying rent for more than 11 years now, if I put together all the money I've spent on paying rent for this 11 years, it is more than enough to build and own a beautiful home of my own.
So for me personally, if I find where i can take a very low interest rate loan to purchase a house, I tell you that I will do it without hesitation or thinking too much about it, as long as the house one i really like and the location where it is situated is good too, and I am also sure that the house is really worth the price its being sold for.

[Vyeon11]

it's better to buy it, rather than having to rent continuously, because no matter how long you live in that rented apartment, it still won't be yours.

the calculation is simple, if you now start a loan and continue to buy an apartment, you won't worry about the house and the rent. but you have to pay monthly installments for 15 years.

second calculation,
you don't take out a loan, but you pay rent for an apartment for "let's say" fifteen years, after fifteen years you don't get the apartment.
well here's the difference
both require installments,
if you buy an apartment with money from a loan, continue to pay installments every month, for fifteen years, after fifteen years all your debts are paid off to the bank, and as a result your house is still yours.

The second
You rent an apartment for fifteen years, and after fifteen years of renting a house, you still get nothing, because it's rent, and your money used for rent, it doesn't make anything.

but I give this opinion based on smooth economic conditions and no obstacles.

The point is to first measure the financial ability that you have today.

[jeraldskie11]

It's so hard to live if we're just renting, just like what you are experiencing right now. As what you've said, you can't guarantee that you can pay for rent for a long time 15 to 20 years because our conditions are not always the same. There is a "what if" in our mind that we have to consider. What if we're still be separate with my gf because we're not yet marriage? So you will be weighted if that happens.

And because I have always think of how hard renting is, I have bought a property to live for. I save so much money and you will not get scared so much if you lose a job.

[Wong Gendheng]

Life today is increasingly difficult, many needs that continue to rise and unexpected so that it makes what we plan often fails, many unexpected cases such as pandemics that make many businesses and business bankrupt make us always be smart in managing finance Money then the first thing to think about is the ability to pay the debt.

[Jody.Drummer]

For some people who reside in a rural area but choose to work in a metropolis, renting is not a waste of money. Renting is advantageous for single people since they can rent a single bedroom for a reasonable monthly fee.

I agree with you, for rural people who have jobs in big cities, renting is an option that will definitely be chosen. They usually rented just for the bed, so it couldn't be called a waste or anything. Because if they repay a house in the city, it's not balanced from what they earn each month, instead of helping, it will even damage the circulation of money in their wallet. Also now in my country jobs are no longer easy to get, and also now many use a contract system. Meanwhile, to make house payments or something like that, it takes years to be able to pay it off, so it's not the main choice.

[BigBos]

It's so hard to live if we're just renting, just like what you are experiencing right now. As what you've said, you can't guarantee that you can pay for rent for a long time 15 to 20 years because our conditions are not always the same. There is a "what if" in our mind that we have to consider. What if we're still be separate with my gf because we're not yet marriage? So you will be weighted if that happens.

And because I have always think of how hard renting is, I have bought a property to live for. I save so much money and you will not get scared so much if you lose a job.

It is very difficult indeed to live alone with a girlfriend without married status to determine future goals with a family, the burden on the OP is very difficult because supporting a girlfriend and meeting her needs and only relying on a basic salary will certainly make expenses not ideal.
You are a lucky person because you already have a property to live in when the economy is like the current situation, even a little food is not a problem because there are no property bills to pay every month and question whether you can pay at the end of the month or not.

[el kaka22]

This assumes that you have enough money to buy a house. We need to remember that first of all you need to pay a certain sum to buy a house, even if you get 80% of the house on mortgage, you still have to pay 20% of it all at once, usually a lot more, and you also need to remember that not everyone will be capable of getting a loan. If you do not have a good credit score, banks won't give you a loan, I can't get a big loan for example.

It means that for some people renting is unavoidable, you have to accept the fact that you are going to pay that rent. Obviously it is going to be hard, but if renting is a must, you better find a very very cheap place so you can save money to buy a house eventually.

[stompix]

Simple solution, rent it while you're away!
You move to a different city, rent the house and with the rent, you pay the current one, it's pretty simple!

It can't be that simple. When you've got most of your stuff in your house, you just can't rent it to somebody else. Not only are your furniture and appliances the only things left, you also have your precious collections and paintings, books, PC, bicycle, and so on. You can't guarantee everything will still be in perfect shape when you come back.

Yes, it's exactly that simple!

You live in a rented house, you move to a new city you have collectibles and paintings and books you take them with you.
You live in your house, you move to a new city, and you have collectibles and paintings and books you take them with you.
It's exactly the same, there is no difference whatsoever!

The only difference would appear when you have a different lifestyle that would mean you buy more stuff, you have cats and dogs, you have a more personal thing but at that point, isn't it obvious that you're not the guy always on the move that needs to be free all the time? It's like a guy who has been backpacking for 20 years talking about how problematic it would be for him to have a 4 room bedroom all filled with stuff! People that want to make their house comfy and so on, filling it with things and designing it with only their own taste in mind are not the ones that will hope on the first train!

[slapper]

For me, I've been paying for rent since 2013, I dropped out of school so this made me start travelling and hustling for money early, we are now in 2023 and by April this year, my yearly rent will be due and I will have to pay for another 1 year, this means that I have been paying rent for more than 11 years now, if I put together all the money I've spent on paying rent for this 11 years, it is more than enough to build and own a beautiful home of my own.
So for me personally, if I find where i can take a very low interest rate loan to purchase a house, I tell you that I will do it without hesitation or thinking too much about it, as long as the house one i really like and the location where it is situated is good too, and I am also sure that the house is really worth the price its being sold for.

Renting may seem wasteful after all your years of spending. Many can connect to your situation. If you can acquire a low-interest loan, invest in real estate. It's worth weighing the advantages and cons. However, buying a home is a major financial commitment that shouldn't be made hastily. Do your research and choose a venue that meets your needs, moves you, and matches your budget. Make sure the location is one you could live in for a long time. Good luck with your housing search.

[Findingnemo]

Let's assume the house you want to buy has mortgage of 600 dollars per month but the rent for same house is 400 so here is what you should do, just choose rent and think you have to pay mortgage every month which means you have 200 dollars extra and you have to keep investing the amount every month into something with decent returns and low risk as long as you can, so at the end of 10 years you may not own a house but the investment you made all those years along with the compounding effect you will have much more money than the worth of that house.

You see that's the problem with scenarios, when you set them so that the result points to what you want to achieve, one might ask himself, is the scenario actually true? What if the rent is 550 and the mortgage 600? What if your investment fails completely? And more importantly, what if the price of the house goes up?
In 2010 the price of an sqm in London was 4500, not it's above 7000!

So even with your scenario, you would have to turn every single of those $200 into $900 in order to keep up just with the housing price!
Do you think is doable for everyone?

If just 50 is the difference then I wouldn't mind getting the loan to be honest but that is not the case all around the world, especially in developing countries so the mortgage amount is at least double or triple the rent amount and also the job security is comparatively less that is why its wise to choose the investment overpaying for an asset for the entire lifetime.

Now real estate is not growing that much as far as I observed and also this work-from-home trend took a decent amount of people from the crowded city to remote places so they avoid rent expenses also have more money to save, maybe  the future can turn either way however the safest chance will not produce the highest returns so one who wants to reach the line before others has to take the investment risk.

[Yatsan]

Waste of money? I doubt. If you just cannot afford building your own, renting would be the very option. Also, that would open up an opportunity for you to be able to save from your salary 'coz it would cost less in the first place. Problem is with people who are becoming comfortable with renting and eventually regretting what they have spend on the leased premise. Without knowing that they'd consume more or will be needing a bigger capital for a start if ever they would have their own. The bottomline is financial convenience. Since you're more likely won't be able to relese huge amount of money in an instant, renting should be considered for sure.

[stompix]

If just 50 is the difference then I wouldn't mind getting the loan to be honest but that is not the case all around the world, especially in developing countries so the mortgage amount is at least double or triple the rent amount and also the job security is comparatively less that is why its wise to choose the investment overpaying for an asset for the entire lifetime.

Allow me to not believe the triple difference not when it comes to developing countries.!
I don't know that much about costs when it comes to developing countries but all the economic reasons for such a price difference are making no sense whatsoever because it would make it simply not profitable for anyone to hold their property and simply just sell it.

Not targeted at you, not to offend anyone in the Philippines but I choose this country since we could get some feedback for it from someone living there so, here we have it, the first google result when hitting "rent or sale"
https://www.dotproperty.com.ph/2-bedroom-condo-for-rent-in-marco-polo-residences-apas-cebu_652487
https://www.dotproperty.com.ph/condo-for-sale-in-marco-polo-residences-apas-cebu_617640

Rent ₱ 65,000 / month  Sale: ₱ 12,000,000  The difference is x184!
And this is far better than the difference here in Europe when it can go to much more the further you go into the western zone and far
The median rent in New York was $2,750 for a single bedroom the price $675,000, x240, see how close those numbers are even if we talk one world apart?

[Ultegra134]

Excuse me for not replying sooner but I had a terrible stomach yesterday and I'm now recovering, I'll try to summarise as much as I can.

~Snipped~

I've had such a tough time dealing with landlords in the past that there are times that I'd prefer if I could repair stuff at my own expense rather than deal with them. I've had landlords prohibit pets (a cat in my case), not repair stuff that broke due to old age, or even break inside my house when I'm away. Certainly, both options have benefits and drawbacks, but in my opinion, owning gives you some peace of mind knowing that you can do any modifications as you please without having anyone over your shoulder.

~Snipped~

Exactly, we've spent over €25,000 in the past few years that we could have added another €25,000-€35,000 and bought a semi-decent apartment that I could either sell in the future or rent if I no longer want to live in it.

~Snipped~

You're right, I forgot to add the average salary here and have only mentioned on a previous reply, the average salary here is about €700-€800, with the minimum being at €620.

I'll summarize because quoting every single post is a little tiring. We've been together for about 4.5 years, and we've lived together for more than 3 of those years. I'm not trying to imply that renting is a complete waste of money; you're paying to have a house to live in, but the end result is zero gains in terms of property gains. In a few more years of renting, I will have spent the equivalent of buying an apartment; thus, in some ways, it looks like a waste of money.

The general rule applies that if you can't afford something, don't buy it, but a loan for an apartment would approximately cost €300–€400 per month, which is about the same cost as the rent I'm paying now, but over a payment period of over 20 years.

[RealMalatesta]

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.

Depends on where you live of course, I agree with that. In some nations rents are cheap and houses are expensive, in those nations rents are reasonable, in some nations buying a house is cheaper with mortgage than renting, and it's better to buy there, depends on the house and rent price ratio.

I believe that we should be considering this as a thing for the future, and consider how much of your money would you be tying down in any way or shape possible, it is definitely a hard job to do and would not be possible if you think you could use that money for something else. I know a very rich person who rents, because he says he could use that money to make more money and buying house doesn't sound reasonable.

[dothebeats]

As a renter for a few years now, I can say that it's better to get a mortgage on a house and just pay that. At the least, that house is going to be yours when the time comes, though you have to work your ass off if you don't want to lose the house that you 'own'. I am considering to just get my own place and stop renting very soon, but I haven't picked up a nice location just yet. Also, the prices of houses and lands are increasing almost every year that you can never go wrong in buying one. Just make sure that you already have a stable career before buying a house, because it is a huge responsibility in paying the mortgage and keeping up with the payments.