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

[bayu7adi]

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.

Under the condition that the country is free from war and has a stable government.

As we can see now, the ongoing war in Ukraine has caused the property industry to freeze for over a year.

In a safe country, this wouldn't be a major issue. And one of the key factors determining a country's safety is the government's policy-making decisions.

[BitcoinTurk]

I've been on the same page about buying a house for years. In other words, if you are not going to live in the house you bought yourself, I think you will have made an unnecessary investment. If you have taken a loan for the house you bought, you will also pay the interest and a part of your salary will always be missing until the year you pay this loan. This means lowering your quality of life. I am against this situation. There's no reason to buy a house you won't live in. You can use this money in many different areas. Because of people's interest in real estate, they have been paying some of their salaries for years and trying to live off their remaining salaries.

If you are going to live in the house you bought yourself, then it makes a little more sense. Even if this is the case, you have to pay off loans for years and live on a part of your income. Human life is not that long. Strive to live well. If you have a high income, that's different.

I totally agree, if a house is to be bought it would be more logical to buy it for ourselves. However, even though the house prices have rised like a balloon it would be a good option to find a bargain house and rent it by renovating it in order to earn passive income. Of course, one day the housing bubble will begin to deflate but as long as people are interested in this, this process will come later. The budget to be used for housing investment can also be evaluated in different investment options but before making such a decision it is necessary to carefully analyze the return process of that investment and the amount of passive income that it can provide on a monthly basis. Especially when you buy a house with a mortgage it has a negative effect on the quality of life but as I said in my previous comment if the rent and the installment amount are close to each other the purchase option will definitely be more reasonable.

[panganib999]

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?

Renting or buying real estate is completely situational and up to you. I've seen people fare better with buying it, some prefer just renting it out or taking on a lease instead of spending stupendous amounts of money for a house they won't stay too long for.

Here's some factors that could affect whether someone would decide if he wants to invest in a property or just rent it out.

First is their propensity for travelling and moving out of places. Some people live their lives in a single city and never move out, some jump from one state to another for school, job, or romance (it's true). You'd be right to assume that the first scenario will yield to the person buying a property outright, while the latter will cause the person to rent properties as it doesn't make sense to spend so much money when you're not going to stay for too long in that particular state anyway.

Another would be their goals. Some people look into real estate investing and thus this leads them to buy real estate. Some just wish to have a nice place to stay in for the meantime and are not willing to spend a lot of money on the fly, this will lead them to rent instead and re-allocate their investment money to something else they see fit.

[irsykes]

In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs,  while I am paying mortgage, buying piece of land in some village remote  -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Not to lecture or anything. Even though I bought the land for investment and speculation, but I don't think hoarding land investment is a good thing and ethical, this is what made housing market soaring, it makes people who actually needs housing can't afford any, and I just don't want to be part of the cause. I don't have problem with people who are doing that, I still think they shouldn't do that, but government still allowing land and real-estate to be hoarded as investment so yeah, people can do what they want, but I just won't do it.  

I think nowadays it is very rare for people to think like you. You think very wisely while keeping other people's interests in mind. And I think you can be called a good person.

I personally haven't thought of getting there yet. because as long as the area of ​​land that I own is below normal, then I personally don't have a problem hoarding it because I might be able to pass it on to my children and grandchildren one day who also definitely need land to make their homes. It's not just about profit. but also about the needs of our descendants who will be more and more. in essence, I personally have not been able to be as good as you in this matter.

right, assuming it looks wise to respond to problems, but that looks just lol because it's not quite right. he doesn't think the future of being a parent is heavier. for example if I have a large area of land, continue to make a rented house at a lower cost than the others. this could have the effect of possibly being more mitigating than spending big money. many people rent houses complaining of high costs out of necessity due to circumstances that make it more normal to work

[Mame89]

What's the better option for you and why?

It all depends on your own finances to decide what is best for yourself. What I'm experiencing now is better. Rent first because the cost of renting a house is only 3-4% per year of the property value. I want to share my experience that in my country it might be different than in your country.
 
For example, buying a property for $ 50k, 20% deposit is $ 10k, the remaining $ 40k Kpr 15 years, interest is 10% per month, the installment is $ 285.
whereas if the rent is only $ 1328 per year ($ 50k x 4%), it means that 1 month is only $ 112.
the difference that can be saved $ 172 per month.

If you rent for 1-5 years, you don't think you need to rent because you can take the $ 10k that was used for Dp to be used for rent for 5 years.

So in the first 5 years we were able to save $17,136 ($285 x 60 months) and were able to buy land + foundation because a property with a selling price of $50k land costs around $20k, a building is $20k, the developer's profit is $10k.
now the remaining 10 years while adding property buildings that need to be added because you can still save $ 2059 per year from the difference between mortgages and rent assuming the house is of the same value.

This is what I do now, instead of borrowing money from the bank, I better save it myself. With the hope that even though we rent, in the end we also own property.

[lizarder]

I would say it depends on your financial conditions. If you have enough money to buy a property without taking a loan, why spend money on renting a property? Or, It's still better if you take a loan and buy a property. But, if you must take a 100% loan to buy a property, I won't suggest buying one. You have to pay the loan for a long time.

I also agree with your view and it really depends on the financial condition of each individual. A strange decision when we have the ability to buy instead we choose to rent. It's another case when we don't have money and use a loan to buy a house and in cases like this we also have to look at the ability to cover monthly expenses and if he thinks this method can be burdensome then it's best to wait until you have 50% of the money in your own savings to buy a house.

Meanwhile, many things can be changed. Buying a property is a one-time investment, and you are making a secure place for your kids. You don't know how much your kids will make and whether they can buy a property. If you are about kids' future, You may want to buy a property even with a 100% loan.

It basically doesn't matter when you have to take out a loan to buy a house to live in with your family and even if you calculate the annual rent, there isn't a big difference in the rent price or the monthly fee for the loan. The consideration is the extent of the ability to pay the monthly contribution and if it is burdensome then it should not be done. Collecting money regularly is also a solution for buying a house, although this method will take a little longer.

On the other hand, there is a way to buy a house provided by the state (subsidized) and the advantage is that we are not charged large fees for interest, monthly fees or down payments. Even though this house is much smaller than the usual house, but at least we are not too burden by any cost to pay it off.

[Hamphser]

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?

Renting or buying real estate is completely situational and up to you. I've seen people fare better with buying it, some prefer just renting it out or taking on a lease instead of spending stupendous amounts of money for a house they won't stay too long for.

Here's some factors that could affect whether someone would decide if he wants to invest in a property or just rent it out.

First is their propensity for travelling and moving out of places. Some people live their lives in a single city and never move out, some jump from one state to another for school, job, or romance (it's true). You'd be right to assume that the first scenario will yield to the person buying a property outright, while the latter will cause the person to rent properties as it doesn't make sense to spend so much money when you're not going to stay for too long in that particular state anyway.

Another would be their goals. Some people look into real estate investing and thus this leads them to buy real estate. Some just wish to have a nice place to stay in for the meantime and are not willing to spend a lot of money on the fly, this will lead them to rent instead and re-allocate their investment money to something else they see fit.

Yes and this would really be that depending on several factors like;

- you do have the property but its not feasible or income generating so you do sell it out
- you dont have money to buy a property and  thats why ending up on renting
- Lots of property which you do rent those houses for income generation

This is why it would really be situational because even if we do like on having or owning a house but we dont have the money to do so then
you would really be having no choice.

[blockman]

Under the condition that the country is free from war and has a stable government.

As we can see now, the ongoing war in Ukraine has caused the property industry to freeze for over a year.

In a safe country, this wouldn't be a major issue. And one of the key factors determining a country's safety is the government's policy-making decisions.

It just happen to see a video somewhere in Australia that there's a politician talking about funding in different sectors with billions of AUD while their people are struggling to have a home. I am not sure if that's for real but this made me realize that even rich countries do have problems with housing projects. That's why still many of its citizen is choosing to rent, well they've got no choice actually but we're seeing the popularity of living in camper van. We do know that people don't want to have monthly obligations and pay rent but if ever they've got a choice they would love to get out of it and own their own real estates.

[icalical]

right, assuming it looks wise to respond to problems, but that looks just lol because it's not quite right. he doesn't think the future of being a parent is heavier. for example if I have a large area of land, continue to make a rented house at a lower cost than the others. this could have the effect of possibly being more mitigating than spending big money. many people rent houses complaining of high costs out of necessity due to circumstances that make it more normal to work

Sorry I don't fully understand the meaning of your post here, I am not against buying house tho, just like I said in my first reply, I will build a house (on the land I already owned) when the area has become advanced with many public facility, and I also think people should buy house if they want to make family, it needed to make the family stable and feel secured.

What I won't do is hoarding real-estate and land for investment, because this is the main reason why people couldn't afford housing today.

[Uruhara]

right, assuming it looks wise to respond to problems, but that looks just lol because it's not quite right. he doesn't think the future of being a parent is heavier. for example if I have a large area of land, continue to make a rented house at a lower cost than the others. this could have the effect of possibly being more mitigating than spending big money. many people rent houses complaining of high costs out of necessity due to circumstances that make it more normal to work

I also prefer to go this way. It's not just for us when we get old. but for our children as well so they can be calmer about their future. Because I understand how it is not easy to start a business career from the bottom. So that I also want to live comfortably when I'm old and also be able to give my children an inheritance in the form of knowledge and vast land. making a rented building on our own land seems like a good idea. provided that of course the location must be strategic so that potentially people need houses to rent in that area. such as near universities, near offices, near factories and so on.

[DrBeer]

The correct title of the topic would be: When to choose to rent residential real estate and when to buy?

Objectively it should be noted that there are very different situations in life.
For example, a young man from a very rich family can afford to buy a new apartment every six months. His family and he have a lot of money, and he just invests "unmovable money" in quite a liquid asset. Here's the answer - if you have a lot of extra money - of course buy real estate, it's not a bad investment for the future!

Or another example: a young man from a poor family, just starting his career, got married, and the young family wants to live independently. The only way out is to rent a house which corresponds to their income. And there is another problem: if they buy an apartment now, it will be a very budget housing in not the best area of the city. That is, not very liquid, and not very much in demand in the market. If you take a mortgage, the cost of housing in the end will not be competitive. This is the economic rationale. But there is another - the family is young, they strive for the best, in the future - children who need kindergartens, schools, quality and not far from home. And yet a young family can change jobs and move to another city. At the same time to sell illiquid housing is a problem. Therefore, for such an option, the most reasonable solution is to rent a house corresponding to the level of income, accumulate funds, for the subsequent purchase of housing in a more favorable location.

I was lucky, I live in the capital, and I bought my first apartment when I was about 25 years old. This apartment is in the capital, in a good neighborhood, which guarantees its liquidity and demand. Then there were 2 more apartments in other areas until I found a place where I want to live a long, quiet and comfortable, near the nature and at the same time in the city

[Strongkored]

This is what I do now, instead of borrowing money from the bank, I better save it myself. With the hope that even though we rent, in the end we also own property.

I've seen content discussing this, how he convinced people that forcing themselves to take a bank loan to get a house is quite dangerous, even though we can afford to pay in installments every month, according to him, it's really not recommended because the bank's interest is quite high and also problems in the future that we cannot predict may occur, for example dismissal so that in the end we will lose the ability to repay and also lose the house because we fail to repay.
The current concept is very different, maybe when a few decades ago investment was still very limited to gold and land, now it is quite popular with stocks and also Bitcoin if you want, investing in these two types of courses with in-depth research can make it possible for us to have a house without having to go through a bank loan, so that we will have the house with real value and patience is the key.

[posi]

This is what I do now, instead of borrowing money from the bank, I better save it myself. With the hope that even though we rent, in the end we also own property.

I've seen content discussing this, how he convinced people that forcing themselves to take a bank loan to get a house is quite dangerous, even though we can afford to pay in installments every month, according to him, it's really not recommended because the bank's interest is quite high and also problems in the future that we cannot predict may occur, for example dismissal so that in the end we will lose the ability to repay and also lose the house because we fail to repay.
The current concept is very different, maybe when a few decades ago investment was still very limited to gold and land, now it is quite popular with stocks and also Bitcoin if you want, investing in these two types of courses with in-depth research can make it possible for us to have a house without having to go through a bank loan, so that we will have the house with real value and patience is the key.

This is how many young people are doing, instead of saving to have enough money to buy a house, they use that money to invest. That way, they can shorten the time it takes to earn enough money to buy a home. I am also applying this method for myself, but I also want to tell everyone that. Investing and saving are not the same, investing can bring high returns but much higher risks. So people need to be aware that we can have enough money to buy a house quickly but also potentially lose everything.

Instead of saving, it takes us 10 years to have enough money to own a house, but with bitcoin, maybe we only need 3 to 5 years to have enough money. Everything is always proportional, high return comes with high risk.

[Mame89]

This is what I do now, instead of borrowing money from the bank, I better save it myself. With the hope that even though we rent, in the end we also own property.

I've seen content discussing this, how he convinced people that forcing themselves to take a bank loan to get a house is quite dangerous, even though we can afford to pay in installments every month, according to him, it's really not recommended because the bank's interest is quite high and also problems in the future that we cannot predict may occur, for example dismissal so that in the end we will lose the ability to repay and also lose the house because we fail to repay.
The current concept is very different, maybe when a few decades ago investment was still very limited to gold and land, now it is quite popular with stocks and also Bitcoin if you want, investing in these two types of courses with in-depth research can make it possible for us to have a house without having to go through a bank loan, so that we will have the house with real value and patience is the key.

This is how many young people are doing, instead of saving to have enough money to buy a house, they use that money to invest. That way, they can shorten the time it takes to earn enough money to buy a home. I am also applying this method for myself, but I also want to tell everyone that. Investing and saving are not the same, investing can bring high returns but much higher risks. So people need to be aware that we can have enough money to buy a house quickly but also potentially lose everything.

Instead of saving, it takes us 10 years to have enough money to own a house, but with bitcoin, maybe we only need 3 to 5 years to have enough money. Everything is always proportional, high return comes with high risk.

The method you apply in my opinion is the most correct. if we understand bitcoin investment then it's better to invest, than we have to save in the bank. I give an example of independent saving, because not everyone is brave and understands about their investment, some are still afraid of investing. so it's not wrong for us to save ourselves instead of taking a loan at the bank. This is the point I made.

Because of what, Invest if we don't have confidence in what he is investing, it's better not to ever try it. because the key to investment is faith and patience. Moreover, as you said, investment has a high risk, but it is also possible that we will benefit in the near future by investing in bitcoin. I mean Invest wisely and Dyor. don't invest because you go along with other people.

[doomloop]

I totally get your point about preferring to buy rather than rent. It's a smart long-term investment strategy if you have the means. But you're right. It's not as easy as it sounds. There are challenges and considerations involved, especially when it comes to financing and managing the property.

Every choice will always have a good side and a bad side, a good side and a bad side. It's just that when talking about which option has more advantages than disadvantages, I personally am more inclined to buy and fully own the property. although maintenance is needed, the increase in property prices from year to year will cover the maintenance costs. different from renting which will make the money we pay only evaporate and we cannot expect any development for the money we pay.

Well, renting is never a choice but it's a compulsion, one who rents a place to give doesn't do it because they want to but they do it because they have to, the main reason behind that is of course lack of finances to be able to buy a property. You can never find a person who has enough money to buy a home but still lives on rent, if you find anyone doing that, that person is either out of their mind or have some complications in their life.

So the answer to the question of whether one would like to have their own property or rent a house will always be that they would like to have their own home instead of paying a certain amount of money in rent every month and living in different places in different phases of their lives.

[Cling18]

I totally get your point about preferring to buy rather than rent. It's a smart long-term investment strategy if you have the means. But you're right. It's not as easy as it sounds. There are challenges and considerations involved, especially when it comes to financing and managing the property.

Every choice will always have a good side and a bad side, a good side and a bad side. It's just that when talking about which option has more advantages than disadvantages, I personally am more inclined to buy and fully own the property. although maintenance is needed, the increase in property prices from year to year will cover the maintenance costs. different from renting which will make the money we pay only evaporate and we cannot expect any development for the money we pay.

Well, renting is never a choice but it's a compulsion, one who rents a place to give doesn't do it because they want to but they do it because they have to, the main reason behind that is of course lack of finances to be able to buy a property. You can never find a person who has enough money to buy a home but still lives on rent, if you find anyone doing that, that person is either out of their mind or have some complications in their life.

So the answer to the question of whether one would like to have their own property or rent a house will always be that they would like to have their own home instead of paying a certain amount of money in rent every month and living in different places in different phases of their lives.

For sure, all of us wants to own real estate properties and to live in our own home without the need of renting but we have different financial situations. Some people choose to rent over buying properties because of a lack of funds and renting is what they could only afford so that doesn't mean that renters choose to rent because they are not into buying land properties. It's just that we have different privileges.
It's just a good thing that there are rent-to-own programs in our country which will also help renters to own land properties by renting for years. It may take a long time but I think it's a better opportunity than just renting alone. I'm sure that if we are all financially capable of investing, real estate investment will be one of our main options.

[irsykes]

right, assuming it looks wise to respond to problems, but that looks just lol because it's not quite right. he doesn't think the future of being a parent is heavier. for example if I have a large area of land, continue to make a rented house at a lower cost than the others. this could have the effect of possibly being more mitigating than spending big money. many people rent houses complaining of high costs out of necessity due to circumstances that make it more normal to work

Sorry I don't fully understand the meaning of your post here, I am not against buying house tho, just like I said in my first reply, I will build a house (on the land I already owned) when the area has become advanced with many public facility, and I also think people should buy house if they want to make family, it needed to make the family stable and feel secured.

What I won't do is hoarding real-estate and land for investment, because this is the main reason why people couldn't afford housing today.

it's just like for example not me against it, maybe our country's area is different. but I'm sure land is the target of business people and that's not a mistake. surely a lot of land is still vacant, it's just that different needs for strategic places and the power of money make the choice. Even vacant land far from cities or strategic places is now the target of family investment hopes for the future. maybe for young people they haven't thought about it that far but thinking earlier is better.

[Uruhara]

Every choice will always have a good side and a bad side, a good side and a bad side. It's just that when talking about which option has more advantages than disadvantages, I personally am more inclined to buy and fully own the property. although maintenance is needed, the increase in property prices from year to year will cover the maintenance costs. different from renting which will make the money we pay only evaporate and we cannot expect any development for the money we pay.

Well, renting is never a choice but it's a compulsion, one who rents a place to give doesn't do it because they want to but they do it because they have to, the main reason behind that is of course lack of finances to be able to buy a property. You can never find a person who has enough money to buy a home but still lives on rent, if you find anyone doing that, that person is either out of their mind or have some complications in their life.

So the answer to the question of whether one would like to have their own property or rent a house will always be that they would like to have their own home instead of paying a certain amount of money in rent every month and living in different places in different phases of their lives.

You are right. Because of course the majority of people also want to have their own home when they can afford it. But yes, financial conditions are indeed one of the obstacles for someone to be able to buy a house. Inability from a financial point of view often makes someone have to keep paying rent for the place where they live. But I believe if he has a strong desire that is accompanied by careful financial planning for the future. then surely someone who rents will also definitely raise money to be able to one day own or buy his own house. But of course he must have an amount of income that allows him to still have money left to save or invest.

[Dr.Osh]

if I have the ability to buy real estate, then I will buy it. however, when we rent land, a house, an apartment, or something that is our primary need, then the main goal we have is to own it as our own and not rent it. we know that with rentals, a certain percentage of our income will go towards paying those rents, and that will continue to happen without increasing the amount of investment we have.
On the other hand, if we have the ability to buy real estate, then we can grow further, moreover, we can also rent out the place in the future.
However, this all depends on the financial capabilities of each. if he can actually afford the thing, then he needs to buy it, and if not, then the alternative is to rent it.

[Wend]

In my current situation, where I live and the condition in the area. I am renting a flat in a big city metropolitan area, working on a company that earns good salaries that is enough to fulfill my needs,  while I am paying mortgage, buying piece of land in some village remote  -but not very remote- area that is still developing and will be at least a small city with good public facility in 5-10 Years.

My plan is either I want to just move there where the area is developed enough or rather just sell it if I can at least doubled the price.

I think your condition is actually in pretty good shape. So whatever choice you take, I think it can still be a good thing and quite profitable. but if you can still continue to earn more from your current job and can pay rent and also can even repay or buy property in rural areas then I think it's better for you to continue as you are now. ie produce more and buy more land property in the countryside. and the land property will even continue even if you don't sell it now. so that's me then I'm not going to sell it. because it will continue to multiply year after year if it is not sold.

Not to lecture or anything. Even though I bought the land for investment and speculation, but I don't think hoarding land investment is a good thing and ethical, this is what made housing market soaring, it makes people who actually needs housing can't afford any, and I just don't want to be part of the cause. I don't have problem with people who are doing that, I still think they shouldn't do that, but government still allowing land and real-estate to be hoarded as investment so yeah, people can do what they want, but I just won't do it.  

If you think that hoarding land for profit is unethical and not good, then investing and speculating in your land is no different than hoarding land. So your statements are contradictory in the first place. If holding land to get rich is unethical, what is holding bitcoin called? Because you are also contributing to the price of bitcoin and making it difficult for many people to buy bitcoin. Just like land, hoarders will be happy when the price rises, but those who need it will buy it at a very high price, and this applies to all properties, not just real estate.