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

[Silberman]

If you have a lot of money lying idly on banks, buying out real estate might be the best deal for you and then renting it out. If not, then you might as well just rent for places and just invest on other assets. There are a lot of things to consider when buying a house. You do not only need to meet the mortgage entailing with buying one, you also have to take into consideration renovation, upkeep, and upgrade fees. Buying a house takes a lot of money, and even if you are someone that has the $$$, you'll still have a hard time maintaining it and it's basically just an asset that deteriorates over time, though if the land that your house is sitting is also named under you, and is strategically located, you might as well just buy one. But how many such houses and lots are still available to be had in a reasonable price today anyway?

This is what it makes it such a difficult decision, in theory buying a house is the superior choice over renting, but there are many circumstances in which this is not the case, and an example of this is this market, for the price of a house a considerable amount of bitcoin can be bought, so what is the best move? To buy a house now or to rent and use the rest of that money to buy bitcoin and then sell as close to the top as we can? And in my mind the latter option is the best out of the two by a wide margin.

[KingsDen]

Mate, it all depends on the nature of your job. If your job is the one that always encourage you and your family to travel from one country or location to another, there is no need to buy. Just keep renting until you are ready to retire and you will have enough money to build yourself mansion. If your job relocates you, you will end up building in one location and paying rent in another location.

But if your job doesn't rotate you, and you have a family, it is then advisable to build.

[Viscore]

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.

It’s always a perfect choice to buy the property and let it do business for you. That will make you financially secured in the long run, as long as you manage your finances well and not try to live above your means.  But if you think renting this time is all you can afford, since you don’t want to take a loan also, then I think it’s also reasonable enough as long as you also save for your future plans.

[milewilda]

If you have a lot of money lying idly on banks, buying out real estate might be the best deal for you and then renting it out. If not, then you might as well just rent for places and just invest on other assets. There are a lot of things to consider when buying a house. You do not only need to meet the mortgage entailing with buying one, you also have to take into consideration renovation, upkeep, and upgrade fees. Buying a house takes a lot of money, and even if you are someone that has the $$$, you'll still have a hard time maintaining it and it's basically just an asset that deteriorates over time, though if the land that your house is sitting is also named under you, and is strategically located, you might as well just buy one. But how many such houses and lots are still available to be had in a reasonable price today anyway?

This is what it makes it such a difficult decision, in theory buying a house is the superior choice over renting, but there are many circumstances in which this is not the case, and an example of this is this market, for the price of a house a considerable amount of bitcoin can be bought, so what is the best move? To buy a house now or to rent and use the rest of that money to buy bitcoin and then sell as close to the top as we can? And in my mind the latter option is the best out of the two by a wide margin.

Depends on how many houses or properties do you own.If you do say that this is your first house that had been bought whether via cash or mortgage then you would unlikely be having the considerations on reselling it
out or you wouldnt be bothered on what would be its value on upcoming years to come but if you do have purchased or bought other property then for sure you would really be having mainly in mind on what would be its resale value overtime. When you are still renting even up to this moment then you would be always having those kind of thoughts that you should really need to buy a house to save up or rent-to-own which it is
really that having in our minds. Buying up something like property using up Bitcoin then i would say its a bad idea, you cant really be sure that those money that had been used would be how many folds in the future
this is why always consider on making use of fiat and dont ever touch up with your crypto holdings or investment because you dont know that it would be making up some tons of profits
in near future.

[Bialke]

This is an easy real world topic:

In my town Person A is renting a flat for 500 units a month, and rent out the flat short-term with AirBNB for 70 units a day. After 8 days the monthly fee is back in the pocket.

Of course, you can do it with a bought flat and with a rented flat. But when you rented it, you do not need to care about major repairings / repairing reserves. Of course, when you buy you do have one tax adventage per flat, but also the risk of devakutation of the flat value through changing neigbourhoods. 

[TheGreatPython]

I like the "Buy" idea better than renting. Ok, hear me out, here's the plan. If you have the ability and situation to buy or build one for you, then go for it. But make sure you choose the one where you can live by yourself and also rent it to other people. That way, you will rent your own property to others to make money also living in that place rent-free, because you own that place.
This will not just give you a place to live, but also a place from where you can earn every month that you can use to pay off the loan. Also, when the loan payment is paid fully, if you wish to move to some place, you can rent your property and choose somewhere else with less rent than you are going to get from your property. This way you will be able to make profits and also live where ever you like.
I don't know how much this will make sense to other, but to me, it's a perfect plan. At least to me tho.

It's not as easy as you think, people don't live on rent because they want to but they do it because they have to since they can't afford to buy a property or get a loan that can be enough for them to buy a house or build one. Also, banks don't give out huge loans to just anyone that walks in with a loan application, they need some collateral, a good paying salary, and many other stuff, if you get through all those criterias, then you might get a loan that will still not be enough for you to build or get a luxury home that you can rent to get a lot of money in return.

Remember, you won't be able to pay off the loan you've taken from the bank only from the rent even if you rent the whole place, if you give half of it on rent and live yourself in the other half, you will barely get enough to cover the bills and everything of your own. If all these things were this easy, there would be no one living on rent anywhere in the world.

[tjtonmoy]

If all these things were this easy, there would be no one living on rent anywhere in the world.

That is why you need to read the OP first. It is clearly stated that if you are capable of and, the bank will give you the loan and your income covers the mortgage payment. I will quote that for you below.

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.

So keeping that in mind, now what's your answer. I said all that because OP suggested that it if possible and the bank will cover the loan. When the situation is on your side like this, in my opinion, buying a property is the best option. You can pay off the loan using your income and if you rent your apartment then you can get extra support on your loan payment. That will ensure less stress.
And it's not that easy, as you said. It is hard, and you need to be capable in order to do it. And it is quite possible given the circumstances.

[Vaculin]

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?

Taking a bank loan is still not advisable. As much as possible, you have to rely only on your hard-earned savings and if you think you are able enough, then no reason to debate but buying the property is always the best option than renting it the whole time. After all, you can always sell it back with a higher price or just use the property for business purposes so you can have additional source of income.

[Maslate]

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.

It’s always a perfect choice to buy the property and let it do business for you. That will make you financially secured in the long run, as long as you manage your finances well and not try to live above your means.  But if you think renting this time is all you can afford, since you don’t want to take a loan also, then I think it’s also reasonable enough as long as you also save for your future plans.

Well, I think that will do for the mean time and I strongly think that it's what most people are doing since they don't have that much spare yet to buy a lot and a house on it to make it a business or an asset. It's pretty much understandable considering that the price of a land these days are quite expensive plus there are tax and other bills that needed to be considered too before owning it. Just for the mean time though but don't settle with anything less because as long as we're still breathing, we always have the chance to be comfortable in life.

[slapper]

I like the "Buy" idea better than renting. Ok, hear me out, here's the plan. If you have the ability and situation to buy or build one for you, then go for it. But make sure you choose the one where you can live by yourself and also rent it to other people. That way, you will rent your own property to others to make money also living in that place rent-free, because you own that place.
This will not just give you a place to live, but also a place from where you can earn every month that you can use to pay off the loan. Also, when the loan payment is paid fully, if you wish to move to some place, you can rent your property and choose somewhere else with less rent than you are going to get from your property. This way you will be able to make profits and also live where ever you like.
I don't know how much this will make sense to other, but to me, it's a perfect plan. At least to me tho.

It's not as easy as you think, people don't live on rent because they want to but they do it because they have to since they can't afford to buy a property or get a loan that can be enough for them to buy a house or build one. Also, banks don't give out huge loans to just anyone that walks in with a loan application, they need some collateral, a good paying salary, and many other stuff, if you get through all those criterias, then you might get a loan that will still not be enough for you to build or get a luxury home that you can rent to get a lot of money in return.

Remember, you won't be able to pay off the loan you've taken from the bank only from the rent even if you rent the whole place, if you give half of it on rent and live yourself in the other half, you will barely get enough to cover the bills and everything of your own. If all these things were this easy, there would be no one living on rent anywhere in the world.

Surely, securing a bank loan isn't akin to a casual supermarket pick-up, but it's not as intimidating as plunging into the Bermuda Triangle either. I stand firm on the transformative potential of cryptocurrency - Bitcoin and its kin. It's like a lighthouse for those adrift financially. Investing here could unlock new income routes, aiding individuals to secure their homes. Concerning loan repayment through rent alone, your view seems one-dimensional. There are multiple ways to amass income, friend. Relying solely on rent for loan repayment is passé. We inhabit an age where diversified income sources are the new normal.

[mindrust]

If you are going to live in that RE for a long time, then just buy it. Seriously. Renting is not even an alternative unless you are going to move to some other city/country in a foreseeable future. Renting a house is like having another employer telling you what to do. Why would anybody agree to that crap?

If you are looking for a place to live only for 1-5 years then rent it. If you don't know if you ever gonna move to some other city/country, then buy it.

As simple as it gets.

[lienfaye]

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

This depends on what's beneficial on each individual's situation. Some people prefer to keep on renting because it has an advantage and usually because it's near from work and buying a property at such place is quite expensive. While a cheap property is located far and you'll spend time for transportation which is a disadvantage for a worker.

Well, if i'm capable to buy a property I will do it, because it means you can call it your own and it's an asset. While if you rent, even it takes years, your payment will go for nothing though it might be convenient for many reasons (cheaper rent, near from work etc.). So the decision will depend on what you prefer and of course more wise and beneficial.

[Uruhara]

This is an easy real world topic:

In my town Person A is renting a flat for 500 units a month, and rent out the flat short-term with AirBNB for 70 units a day. After 8 days the monthly fee is back in the pocket.

Of course, you can do it with a bought flat and with a rented flat. But when you rented it, you do not need to care about major repairings / repairing reserves. Of course, when you buy you do have one tax adventage per flat, but also the risk of devakutation of the flat value through changing neigbourhoods. 

This seems like a pretty good idea for some areas. Maybe if the neighborhood does have a high number of potential tenants then it could be quite profitable. But if it turns out that the neighborhood does not have enough potential tenants. then it is at risk of making flat tenants suffer losses. The bottom line is that everything has its own risks. but as long as we have analyzed the existing potential before deciding to rent the flat. and when you see good potential then act. then maybe this can indeed be quite effective and profitable.

[justdimin]

In my own opinion there nothing to debate this topic because this all depends on a persons need.

We know how expensive the real estate assets on business hub cities compare to province so much better if you rent since you can enjoy all of your time since you will not get drained to travel long hours for you to get home.

You can also buy house and lot even if your budget is tight but expect it will be on province and not near to your workplace. so try to decide depends on your needs since buying an asset is somehow a big obligation to take.

That makes it debatable because the answers are subjective. One person can state on why renting a real estate is better and the other person can give his opinion as well on why buying a real estate is the best. Real estate in a city is expensive but once you buy it, you can still be able to recover your capital for a short period of time if you open up different businesses there.

You can also resell your real estate later on, for a much higher value. To have a real estate in the province area do also have its own advantage because it is more relaxing there and you can use some of your land to make a farm. It can as well provide you an extra income.

[Pierre 2]

If you are living in rather inflationary country its far better to start paying to bank than your home owner. If you can strike permanent low rate credit with bank your debt will keep getting melted over time. Potential rent of your home will keep increasing always in such countries. But your debt's weight on your income will keep decreasing with permanent rate credits. I would honestly enjoy to buy even second-third maybe even fourt flats if taxes aren't that high.

[DanWalker]

In my own opinion there nothing to debate this topic because this all depends on a persons need.

We know how expensive the real estate assets on business hub cities compare to province so much better if you rent since you can enjoy all of your time since you will not get drained to travel long hours for you to get home.

You can also buy house and lot even if your budget is tight but expect it will be on province and not near to your workplace. so try to decide depends on your needs since buying an asset is somehow a big obligation to take.

That makes it debatable because the answers are subjective. One person can state on why renting a real estate is better and the other person can give his opinion as well on why buying a real estate is the best. Real estate in a city is expensive but once you buy it, you can still be able to recover your capital for a short period of time if you open up different businesses there.

You can also resell your real estate later on, for a much higher value. To have a real estate in the province area do also have its own advantage because it is more relaxing there and you can use some of your land to make a farm. It can as well provide you an extra income.

Owning real estate is everyone's dream. Those who say renting is better than buying are those who can't afford to own real estate, whether in the city center or the provinces. Because we all know that real estate is always the best long-term investment. When owning real estate, and if there is no need to live, you can also rent it out or let it run a business to generate passive monthly income from it.
Owning real estate brings many benefits to us, and that is why it surpasses gold and remains the first choice of large investors.

[smile1218]

Renting may be a better option if you value flexibility and mobility. Renting would allow you to  easily move out to a new location without the hassle of selling a property. Renting can be more cost effective in the short term, as you do not have to worry about property taxes, maintenance costs or a down payment. Buying a house is a good investment  in the long term. Real estate generally appreciates over time, meaning your property may increase in value and provide a return on investment. Owning a home can provide stability and a sense of pride in ownership. To rent or to buy should be based on your individual financial situation and lifestyle preferences. It's important to consider factors such as your income, savings, credit score, and long term goals when making this decision.

[Suzume]

Whether or not you buy real estate depends on your financial situation. If you can afford a bank loan then I think you should buy real estate. Because we all know the fact that money is depreciating day by day.  One thing you notice is that as days pass the prices of land, gold and silver are increasing. If you can afford the loan then would say take the risk once because you can't rent for the whole year. You will have to relocate someday and if you have your own land then it will become a means of your future security.

[Paul Pogba]

Everyone certainly wants to own property because property investment is the safest and most profitable, in several big cities in my country the increase in property is fantastic and makes many poor people sell their land and they choose to live in rural areas which are still cheap, unfortunately many crimes can occur in business property such as fraud, government-backed evictions and so on.

[yohananaomi]

Everyone certainly wants to own property because property investment is the safest and most profitable, in several big cities in my country the increase in property is fantastic and makes many poor people sell their land and they choose to live in rural areas which are still cheap, unfortunately many crimes can occur in business property such as fraud, government-backed evictions and so on.

agree, owning property is an investment that can be sold at any time and usually the investment will continue to move up, especially if the property is purchased in an area that continues to grow and has adequate supporting facilities, it is certain that the property will continue to be a target. It is not surprising that the more property is sought after, the more expensive it will be, so many who do not have jobs [poor] have to be shifted to rural areas because they cannot afford it.