Rent or buy real estate - let's have a debate

[avikz]

I have been debating about it with couple of my colleagues whether stay on rent or buy a property.

Let's assume, you are well capable enough to buy a new property through bank loan. Your income supports the mortgage payment so banks are willing to lend you money.

What will be the best route to take? Buy the property or stay in a rented place?

The usual appreciation rate of your property value is around 10% owing to the development work that are ongoing. For rented property, your rent increases by 15% every year.

What's the better option for you and why?

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[Nwada001]

It all depends on my financial status; my earnings will decide which one is best for me.
 
Building a house will cost a lot. I know it's a one-time deal, but let's not forget the fact that a living house is more of a liability. The expense of paying for rent every year might be off your budget, but there are bills that come with owning a house. Let's not forget that the loan amount will be deducted from my salary on a monthly basis, which will reduce the amount I will have to come home with every month. My wellbeing expenses are attached to the salary, so cutting it short means I will either have to adjust or look for other earning means to meet my bills.

So it will be better if I take that loan, rent an apartment, and set up something that could be used to generate money so I can actually build a house of my own, rather than building a house from a collected loan. If I take a loan enough to build a house, I could possibly use that to set up a business and allow my employees to be educating my loan amount from my salary, so my business can be generating me some income, which I can use to cover up those loan amounts every month. If those loans are fully covered, or maybe there are good profits coming out of the business, only then can I think of starting up the house building. That's when I will see myself as someone who is financially ready to foot the bills of my own home.
 

[bayu7adi]

It entirely depends on future plans, financial situations, and personal preferences.

Some consider property as a highly potential investment model, but it should align with our financial conditions. In my opinion, if someone's monthly income is sufficient to meet daily needs and also pay for mortgage installments, I would prefer to gradually own the property in the future. However, this requires having a financially capable condition.

Again, it ultimately depends on each individual's personal preferences. However, when I hear that mortgage payments are not significantly different from rental prices, I would choose to purchase the property through installment payments. This is assuming that the monthly down payment does not overly strain my finances each month.

[Unbunplease]

On the one hand, renting real estate is a good thing. If, for example, the store does not bring in the expected income, you can simply open a store elsewhere. If, however, you bought the premises as property, and the business went bust, you will have to think about how to sell the premises at least at the value at which they were bought.

On the other hand, if the premises are not owned, and you have promoted the place itself, the landlord may want to terminate your lease and open own similar business in the premises.

[Upgrade00]

Let's assume, you are well capable enough to buy a new property through bank loan. Your income supports the mortgage payment so banks are willing to lend you money.

This would depend on what interest you pay on the loan and how long you can take to pay it back. If you can comfortably pay back after a determined period of time and have job security then buying is the better option
For financial advice it's best to consult the services of a professional.

[darkangel11]

Both have their positive and negative sides and depend on a number of factors, for instance the location of your country. If I were somewhere close to a war zone, like in the Baltic countries, Belarus, Moldova, I wouldn't plan on buying, at least until the situation calms down.
If you know the problems people face in Spain with occupants, you'd think twice before buying a property there.
 
Buying property:
You have your own place that nobody can kick you out of.
You decide how it looks, what repairs are required, you can remodel it the way you like.
If managed in the right way it's going to grow in value, but will lose value if neglected.
Makes it harder to move.
Can be robbed, or vandalized.

Renting out:
More expensive in the long run.
You can get a difficult landlord.
Less freedom in remodeling.
Allows you to move out whenever you like.
Gives you more time to decide on whether you want to live and work in that area.

[Alpha Marine]

It depends on lots of things, but following the information given, it will be better to buy the apartment. There's every possibility that the property will appreciate so you can sell it off if you have no use for it in the future.
Also, it depends on what you need the property for. If it's just for a short period, there's no need to take a risk by taking a loan to buy the apartment.

On the one hand, renting real estate is a good thing. If, for example, the store does not bring in the expected income, you can simply open a store elsewhere. If, however, you bought the premises as property, and the business went bust, you will have to think about how to sell the premises at least at the value at which they were bought.

If the reason for buying the property doesn't work, you can put it for sale. Or better still, put it up for rent. So there's no big issue there. The problem comes when the property depreciates due to different factors. If the property appreciates, people will seek that kind of apartment. It would be easier to sell or rent and turn it out as a source of income.

[Zaguru12]

What will be the best route to take? Buy the property or stay in a rented place?

Renting is done only on stuffs that incurs taxes and also when you don’t want that stuff permanently. As for renting or owning a house it depends on the nature of your work because for someone that works in an organization that he or she can be transferred any time then renting seems the better option. But if it is the other way round like you would be staying there likely permanently because you have a stable job then one needs to go for owning a house. Owning a house gives you the option of fashioning the house to your taste and also making your decision. Again with proper maintenance owning a house only increases its value. Also if a loan is taken and it is sufficient to buy a house then it should be bought because renting an apartment or house with loan funds only brings about loss except it is a business place

[coupable]

I do not think that a final rule can be reached about which is better in what looks like a comparison. From a general point of view, owning a property would be better than having to rent it, but this depends each time on the purpose of the process and the financial situation of the person. For example, it would be better to own the house in which we will stay so that we do not have to pay a monthly fee throughout our lives or have to change it every time, but this is relative, since there are people who do not prefer to live in one place throughout their lives.
From a personal point of view, I prefer owning real estate for investment purposes, and with regard to the requirements of my daily life, renting real estate gives me more freedom to change and roam.

[Onyeeze]

Nobody to be like staying on a rented apartment than having your own apartment purchased by yourself or build by yourself so I believe in my own property not in another person's property because there will be a lot of condition that will been attached to it if you are living in Apartment that is not yours you have a condition which if you don't meet up on that condition you might the great up from that particular place with immediate effect

[milewilda]

I have been debating about it with couple of my colleagues whether stay on rent or buy a property.

Let's assume, you are well capable enough to buy a new property through bank loan. Your income supports the mortgage payment so banks are willing to lend you money.

What will be the best route to take? Buy the property or stay in a rented place?

The usual appreciation rate of your property value is around 10% owing to the development work that are ongoing. For rented property, your rent increases by 15% every year.

What's the better option for you and why?

Totally depends on you since its your money or investment after all.Choose on which you do see that you would really be able to benefit but in overall real estate business or having property is always been that an advantage because of having that potential earning income month by month and the appreciation when it comes to such property but of course it would really be depending on where it is located or having those check marks in speaking about those main factors. Renting it out and its income would be the ones would be paying up for mortgage? Its ideal but you should be prepared because not all the times your unit does have
a tenant which means if a certain contract expires then you should really be preparing up on paying up the mortgage which its just common sense.

On the time that you would really be able to own such unit or property then this is where real income would flow through. There would be no deductions considering that you do own the unit
plus on the time that you do need more money to have a capital on other business then you could really always appraise your property.

[BitSwapNow]

Always buy... rent is throwing money into the wind. Sure there is liability's or upkeep and maintenance costs with owning a home but its more of an investment. Your mortgage is going towards your principle and your building equity. Not to mention it depends the area you are purchasing in. In 10-20 years that homes value can increase significantly meanwhile rent will only increase thus your paying out more and more. You can always purchase a home in your means where the mortgage is almost the same as your rent. I would only see renting as a plus in certain situations or scenarios. If you have high income then you could rent to make life easier or maybe you travel a lot and don't need a big home or have the time to maintain and upkeep. SO yea some other users are right in whats the situation. As far as investment and return on investment obviously purchasing would make more sense.

[blockman]

I'll buy the property and have it rented while I am also renting. But I'll make sure that the rent of my own property is going to be enough to cover the mortgage and my rent as well.
I'll have a cash flow and that's going to help me understand why renting is just temporary and I'll still want to own my property in the near future. It may take time and it's not easy but the important thing is I'll own it someday when I am done paying the property. But the best scenario is that when you're able and you've got enough savings and cash, I'll pay the property cash so that I won't think of anything everyday for how many years and I can sleep tight and very well in the evening.

[Smartvirus]

Let's assume, you are well capable enough to buy a new property through bank loan. Your income supports the mortgage payment so banks are willing to lend you money.

What will be the best route to take? Buy the property or stay in a rented place?

You know, when I first read the part where you talked about being capable, I thought it was going to need just that (having your own well enough money to buy what you want or wish for) but instead, it ended in a loan, a loan! Common on, both options aren't enticing but on the whole, I like owning my own stuff. I might just as well buy the whole thing rather than keeping up with the rent.
It's so hard having to live as a tenant to some landlord or land owner that could evict you on a hood reason, bring up policies that would require your forced compliance and lots more.
I think you ow of tw best thing to do is scale the interest rate om it, the timing to pay up and be free and then, you ensure to handle it good.

[romero121]

Whether you rent or buy the property needs to be prioritised based on one's plan. If you've settled everything in the location (business/job) and you've got good finance to support buying a property, then it is good to go for buying.

When you're no more in a position to stay on particular location and wants relocation due to business or for your professional needs, then the right choice is to rent. If you've got good sum of money after your regular needs and support buying a property then go for it. This is a big investment and could create income through renting the property with which the loan can be repaid.

[noorman0]

Always buy... rent is throwing money into the wind.

Established business people look more at the potential benefits and financial risks in detailed calculations between renting and buying, most of them choose to rent because of course they know where large amounts of money should be managed. Let's just say, they can manage the allocation to buy a property that brings in huge profits on a regular basis, so that it takes even a fraction of those profits to cover the cost of the rent.

[Darker45]

For me, there's no debate on the issue. Buying real estate is always better than renting. I can list my own reasons. First off, it will be yours. That you won't be renting forever is enough reason for me to favor buying your own house.

I was actually happy when I read the book The Richest Man in Babylon and found out that one of the tips mentioned was to "own your home." I couldn't agree more.

You can renovate it freely, adjust the design later on according to your own taste and needs, use it as a collateral for a loan, sell it, and so on. You can do whatever you want with it. It is frustrating to always defer to your landlord on all decisions about the place you're living in.

Moreover, with inflation, what you will be paying in the years to come for your own house will actually be worth less.

[Wexnident]

Buying 100%. We are considering it as me being financially capable right? Honestly just the fact that you have something under your name is an advantage in of itself already. Now if you wanted to grow it then that's something you'd have to put effort in but honestly it's already a plus if you were able to buy it in the first place.

You can even rent part of the place if possible to generate more income to help the payments and after that, it's just money. Granted big payments may be needed every noe and then due to development, but seeing as you're already capable of buying the land itself, I don't think prior payments would pose much of a problem if planned properly.

[libert19]

If you have money at hand without taking a loan, I'd suggest purchasing property, otherwise stay at a rented place. It's just personal opinion, I prefer no debts hovering over my head.

[348Judah]

What will be the best route to take? Buy the property or stay in a rented place?

The two options are good and non is bad to take but one is more preferred than the other, no one will be privileged to own a property and will rather prefer renting it, the reason why most people conclude on renting is for them to have an extensive period for repayment and they can only get through this by applying through mortgage, whereby they have a steady source of income that generate them financial flow, inwhich there will be a monthly deductions from their earnings to go for repayment after signing the agreement, so it all depends on how one is financially capable or incapacitated.