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

[Kakmakr]

OP, this has been a very good topic for years now.

I think people should have a two pronged approach to this, namely to "own" a property first and not to enrich other people ...while they can enrich themselves. A property are seen as an asset..... and a rented property as a debt, so I think it will  be better to work towards a future, where you repay your bond and you create an asset.  

I started with a small flat and I worked my way through some high interest rates to own my first property. I then sold that property and I bought something bigger..... I would have never been able to buy the property I own now, if it was not for that first property.

Once you acquired your first property, you can work on getting a second investment property to boost your portfolio.... then your property starts working for you. A person renting a property...does not have the bargaining power to get a loan for a second property, if they do not have assets to back up that loan application.  

[1714621829]

1714621829

[Renampun]

if I have to choose to rent or buy a house with debt, I prefer to rent a house. the reason is quite simple, because I don't want to be in debt and be burdened with high bank interest. by renting I can rent a house in a more strategic location which can save my time anywhere. I can also set aside part of my income for more profitable things.

even though I have to choose to buy a house, I prefer to buy it as an investment using cash, of course. even though I have to spend quite a lot of money at least I can avoid high interest.

[Sexylizzy2813]

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?

That's if I'm to take the loan from the bank, well it all depends on your pocket (if it's financially healthy, that's to pay back) because to me I'd say buying a property is the best. Having the property to yourself won't warrant anybody to come ask for monthly or yearly rent, the only bill you'd pay doesn't concern anyone outside your property. But renting it would attract more expenses, you have to work yourself out, you'd work x2 of your working hours just to meet up expectation.

[19Nov16]

I think Buy Real Estate is the best solution, if you are still rent to stay, then you should immediately take concrete action by immediately taking home credit, if we have a home credit then we have done 2 good things that are saving and stopping costs due to rent, if we continue to rent So we can be sure the future will be more difficult because the price of property is certainly more expensive.

[glendall]

it all depends on the income I think .
I think buying by credit at the bank is better than continuing to rent continuously,
When renting, we have to set aside money every month to pay the rent that will be due, but how long will we rent?
if we buy a house or apartment by credit/borrowing money at the bank I think it's the same as us renting but after the sale and purchase contract is completed we can own the apartment house that we rent from the bank

[Synchronice]

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?

If we keep in mind that crypto market is very volatile and magic happens once every 4 years, then I don't really understand why should someone take a loan to buy an apartment instead. There is a dip in crypto market right now and I immediately bought matic at 0.5700 price. At the moment, I'm in 14% profit and I believe that this coin will bring me 200% profit this year and way much higher after bitcoin halving. Mark my words and tag me when Matic reaches 1.71 USD.
I prefer to rent unless I become a millionaire because I change places, plan to change the company where I work, plan to change the city or the country. Rent is flexible, portable and sometimes you manage to find it in good price, for me, unless I am a millionaire, I prefer to rent because mortgage payment is a big financial task and a huge responsibility, a huge stress factor when your life depends on your salary. Sometimes, mortgage payment is a fetter with ball and find it very hard to risk in life because of a huge mortgage payment.

Also, I don't really understand this western culture, what's wrong to live with your parents if they let you to do so? Even if you marry? What's wrong? Nothing, you'll save money and your parents will be happier unless they are a type of parents who ask their kids for a monthly rent price.
I hope this western culture of moving away from parents will bury deep because it's making things worse and terrible for everyone. That's just unnecessary!

[Cryptmuster]

it all depends on the income I think .
I think buying by credit at the bank is better than continuing to rent continuously,
When renting, we have to set aside money every month to pay the rent that will be due, but how long will we rent?
if we buy a house or apartment by credit/borrowing money at the bank I think it's the same as us renting but after the sale and purchase contract is completed we can own the apartment house that we rent from the bank

It doesn't just depend on income.
If you are not going to live in this city for a long time, but plan to move after some time, then obviously renting will be the best solution. And if you know for sure that you want to stay in this place, then a loan, or a mortgage (depending on what suits you best), will be the best solution, because in a few decades, this property will become your property.

[odolvlobo]

The decision to buy or rent is an economic one. There is no blanket answer. It depends on the numbers. If you can afford to buy, but it is cheaper to rent, then it seems like a solution might be to rent and invest the money you saved.

Also, your home should not be generally considered as an investment because the gains from selling it are generally lower than the costs of owning it, though there are exceptions.

[Litzki1990]

Those who are usually in a financial position to own their own home are the ones who rent. Renting means deducting a certain amount of money from your net worth every month. Because the money spent on house rent is unlikely to ever come back but if you have the ability then you should definitely buy a house and stay in your own house, there is no problem if you have to borrow some amount of money. Because even if you borrow some amount of money, if you can build a house, then the entire money will be spent on your house and you will never waste that money. When the house is completed, your savings will be equal to the amount you would have paid in rent each month when you were living in your own home. In that case, I think it is a right decision to build a house instead of staying on rent.

[BenCodie]

It really depends on your circumstances. Obviously, if you have the cash to buy a property with minimal mortgage/financial assistance, then buying is the way to go. If you are someone who works in a highly populated area and you spend a lot on travel costs, or waste a lot of time traveling in comparison to renting, then maybe this convenience is necessary to put less pressure on you and open up more time for more important things in life.

My overall opinion though is that renting is inefficient unless it is absolutely necessary for reasons like mentioned. You are not putting the money toward anything, it is just money disappearing for accommodation. If you have to rent, rent cheaply and do everything you can to buy your home. Owning your home is the greatest investment you can ever make! Not just from a monetary perspective, but a financial and well-being security perspective.

[Etranger]

I believe it all depends on the country and the market conditions there. There are number of states where it is practically impossible to take a loan without a collateral in the form of already existing real estate. I live in such a country, for example. Imagine you are a 26 year old, you only start your life way and your parents couldn’t provide you with an Appartement or a a house. You don’t have any collateral, you cannot take a loan in the bank. Even if you could, the interest rate would be near 30% in a year which is the best option because it could be up to 80%. So you don’t really have another option except for renting, because your salary would not cover neither a body of the loan nor interest. The most spread option for people in my condition is to safe money for years, for 10-20 years in order to get an opportunity to buy a flat. That is why I am interested in crypto, cause I believe it would safe me several years of such savings and will provide with an opportunity of buying the real estate for living.

[Iadegbola34]

Considering my situation, what's the better option for me? Well, it's a tough call. Buying could potentially let me build equity and benefit from property value growth, but it also means taking on the responsibilities of homeownership. On the other hand, renting offers more flexibility and less hassle.

[kryptqnick]

I think to me, a big question would be how long you need to spend to pay for the property (and whether you're allowed to pay it out faster), and how confident you feel that you'll be able to find a different but similar-paying job in case you get fired or you become unsatisfied with your current job. Oh, another factor is the difference in price between the monthly rent and mortgage payment. If mortgage is around the same or less, it's great. If it's 2x+ higher than the rent, it's worth a much more serious consideration.

I think purchasing your own place is very nice, especially if you're the sort of person who is ready to settle and aren't planning to move to another city or country for more than 6 months.

[mvdheuvel1983]

What you have in your pocket will determine the answer.
You should consider how much you would pay annually if you planned to rent the apartment for four years. Keep in mind that inflation might happen at any time, at which point the landlord may decide to raise the apartment's rent. However, if you decide to purchase a home, it could be challenging at first to pay for the house's price and other connected costs, but once you do, the home is yours forever. Instead of working against you, inflation will benefit you because if you decide to sell the apartment when prices are rising, you'll get a lot more money for it.

[kojektea]

I think it's better to buy then rent it to someone else. real estate is a promising industry as a means of investment. It's a big loss if this opportunity is wasted. some people who really need it but don't have enough money to buy it, of course, can only rent it, now here we have to be a landlord who rents out, that's very profitable for us.

[bittraffic]

What you mean by BUY is looking like taking a loan from bank which is really not the kind of advisable if you are not sure whether by the next 10 years you will still have a good paying job.
When you  own property by the way you get attached to the place as well. You may not be able to move somewhere else unless you sell the property.

If I have to buy, I would buy the property in cash, nothing to pay for afterwards, no bank loans too.  If I have no plans to stay in the particular place. Renting will be the better option.

[SOKO-DEKE]

 
There are many things someone has to take into consideration before deciding whether to buy a house or rent an apartment. If I am okay with my salary or wages and if I take a loan from the bank and their interest rate is not high and the reduction rate from my salary will not affect me, I think it should be better for me to buy a house than rent an apartment because the rent payment is always increasing every year. It is always hard to be paying back a loan because that will really reduce some of your expenses, but if someone thinks of it well, I think when someone has their own apartment, it will be better for once.so I will prefer to buy a house to rent.

[Findingnemo]

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?

As of now I will say rent is the best choice because due to the increase of Fed's interest rate the loan interest rates are increased by the banks as well so even if the increase is by 0.25% the loan tenure may increase 3 to 5 years.

Also we can't sure about the appreciation of that asset will be 10% for the coming years as well due to the internet boom and high unemployment rate so we are at the worse economic state all around the world.

Don't buy a property unless you can generate revenue from it for example commerical real estate is good.

[Kasabus]

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?

If you have a plan to buy a property in the future, then why not do it now especially that you are already capable to do it by taking a loan. However, if you have other better plan that you want to achieve first than owning a property, then owning that property may not be align with your plan. So it all depends on your life’s plans. If renting will make you profitable this time and may give you the current advantage, then stick to it and set buying a property as you future plan.

[Silberman]

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?

There is not an easy answer to this, in theory owning your own house seems like the best scenario, as once you finish paying your house then you can get rid of that expense and use that money for something else, while if you rent then that is an expense you will have until you die, however when buying a house on credit you will pay the house several times during the period of the loan, which on average it will last for a few decades, and you need to hope that a huge economic crisis does not strike during that time or you will lose your house and all the money you invested in it during those years.