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

[icalical]

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.

Your first statement might be arguable, some people think that might be contradictory, but for me I am not directly contribute to the housing problem because I only buy what I need, I don't buy many lands/housing that I don't need and just speculate on it, I only buy land that I need to build a house that I need, so I only buy the thing that I need. It's only bad if someone buy large/multiple area of land / housing that they don't need and speculate on it. For short, I don't contribute to housing problem since I am not hoarding house for investment, but I take advantage of it and that is also big if, if I sell my land, which is not my initial intention.
 
That was your first point, while your 2nd point comparing Bitcoin and Housing is very much non-sense. No one ever really need Bitcoin for their live, have you ever seen what happened to people who can't afford to buy/rent a place to live, they are very much in trouble. Now, have you seen what happened to people who can't or don't -because using bitcoin is optional- use Bitcoin, they still enjoying their live. So, in short speculate on housing/land is taking people's right of affordable housing, while speculating on Bitcoin won't give any significant effect on other people's life, so it's totally different

[1715446599]

1715446599

[Lubang Bawah]

Anyone, of course, wants to buy property because it becomes a basic need after consumption, unfortunately not everyone can afford to buy it so they have to rent, and the best thing is of course we have to continue to increase our sources of income so that one day we can buy property and not rent anymore.

[Koadharber]

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?

Just like what other guys have been telling here, it actually depends! And that is the truth!

The topic seems to be pretty common as well on TikToK from Financial Gurus that will definitely recommend go for a bank loan to build the building and buy the land, then use the rent income to pay for mortgage. Pretty easy to say and hard to execute.

Just like what Dave Ramsey said, credit is a risky business, and to add from Mark Cuban, "if you loan a capital for your business, you're stupid because there are a lot of risks in business but the only guaranteed is paying back that loan.

The question goes, what happens if you don't get tenants for your building? Do you have plenty of alternative income sources to compensate? If yes, then continue, if not, please don't - you're gonna waste your payments.
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[bettercrypto]

Everyone wants to own their own real estate property. That's why most of them are unable to get it because of financial problems, and the others don't make a way to have it. Others to have their own property are going through 30 years to pay to have their own house and land. And the only ones qualified for this 30 years to pay are those who are regular employees or have their own businesses.

It's just because most of them are poor that's why they end up renting and making a strategy to earn money to cover their daily expenses.

[Russlenat]

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?

No one would want to settle renting the property forever, as you are always spending money for rental and yet, you won’t own the property in the end. That’s why buying a property is always the best option. But if taking a bank loan is the available option for you to gain the property, for me the answer depends based on how much the monthly amortization is and if you can still manage to sustain your necessities from your salary net proceeds. Because if not, then don’t compromise your present income and struggle on your finances. Just slowly save from your salary and keep your extra money, and once you can afford to buy it in cash, then never hesitate to make your goal realized.

[lizarder]

Anyone, of course, wants to buy property because it becomes a basic need after consumption, unfortunately not everyone can afford to buy it so they have to rent, and the best thing is of course we have to continue to increase our sources of income so that one day we can buy property and not rent anymore.

Home is something that is very important for people because it is a place to rest after carrying out daily activities outside. If you can't afford it, the option you can take is to rent it, but how long do you have to live in a rented house? If the source of income is still not enough then forcing to build a house is also not the right decision, but this cannot be allowed to continue and we must find a solution to meet the needs of building a house to live in with our family.

The solution is to increase savings for the target of building a house or try to invest in something that can maintain the value of the currency. This method can be implemented when people want to try to increase their sources of income and we also have to work hard so we can make the target of building the house.

[inthelongrun]

Everyone wants to own their own real estate property. That's why most of them are unable to get it because of financial problems, and the others don't make a way to have it. Others to have their own property are going through 30 years to pay to have their own house and land. And the only ones qualified for this 30 years to pay are those who are regular employees or have their own businesses.

It's just because most of them are poor that's why they end up renting and making a strategy to earn money to cover their daily expenses.

In school, thru our accounting, financial, and business subjects, we are taught that real estate is an asset which means it is beneficial because obviously, its value appreciates over the years.

In reality, though, not all of us can afford real properties. Or some can afford it but not to the same place they are working. But for people with limited resources, it's not like it is urgent. Instead of saving money to buy real estate, we can use that money to start a business. And once the business is earning regularly, we can apply for a housing loan.

[Ever-young]

Anyone, of course, wants to buy property because it becomes a basic need after consumption, unfortunately not everyone can afford to buy it so they have to rent, and the best thing is of course we have to continue to increase our sources of income so that one day we can buy property and not rent anymore.

This is the kind of response one could possibly get from a usual who don't usually read through the content of the OP before dropping their comment.

We all have basis needs and one need is more important than the other, in a case of the OP where you are giving an opportunity to get a loan, will you rather build a house with the loan or rent an apartment which do you think will be the best, I will say building a house will be more of a choice, since it will be convenience enough and save me the stress of paying bills all the time, and the loan will also be deducted from my salary which I wont have to worry about how the loan will be repaid.

[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.

Your first statement might be arguable, some people think that might be contradictory, but for me I am not directly contribute to the housing problem because I only buy what I need, I don't buy many lands/housing that I don't need and just speculate on it, I only buy land that I need to build a house that I need, so I only buy the thing that I need. It's only bad if someone buy large/multiple area of land / housing that they don't need and speculate on it. For short, I don't contribute to housing problem since I am not hoarding house for investment, but I take advantage of it and that is also big if, if I sell my land, which is not my initial intention.
 
That was your first point, while your 2nd point comparing Bitcoin and Housing is very much non-sense. No one ever really need Bitcoin for their live, have you ever seen what happened to people who can't afford to buy/rent a place to live, they are very much in trouble. Now, have you seen what happened to people who can't or don't -because using bitcoin is optional- use Bitcoin, they still enjoying their live. So, in short speculate on housing/land is taking people's right of affordable housing, while speculating on Bitcoin won't give any significant effect on other people's life, so it's totally different

When you buy land/bitcoin to speculate for profit, you are affecting other people's lives. All are financial markets, and money is not born on its own, but from person to person. I mean, when you take profit, it means someone bought at a higher price and suffered a loss. The marketplace is a battleground where smart people win by taking money from other stupid investors. It's a financial harshness that many people don't understand.
The government doesn't print money and distributes it to all of us for free, bitcoin/land, the price increase is due to speculation by people like you and me, all of us. Every market will have winners and losers, no market will all win.

[icalical]

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.

Your first statement might be arguable, some people think that might be contradictory, but for me I am not directly contribute to the housing problem because I only buy what I need, I don't buy many lands/housing that I don't need and just speculate on it, I only buy land that I need to build a house that I need, so I only buy the thing that I need. It's only bad if someone buy large/multiple area of land / housing that they don't need and speculate on it. For short, I don't contribute to housing problem since I am not hoarding house for investment, but I take advantage of it and that is also big if, if I sell my land, which is not my initial intention.
 
That was your first point, while your 2nd point comparing Bitcoin and Housing is very much non-sense. No one ever really need Bitcoin for their live, have you ever seen what happened to people who can't afford to buy/rent a place to live, they are very much in trouble. Now, have you seen what happened to people who can't or don't -because using bitcoin is optional- use Bitcoin, they still enjoying their live. So, in short speculate on housing/land is taking people's right of affordable housing, while speculating on Bitcoin won't give any significant effect on other people's life, so it's totally different

When you buy land/bitcoin to speculate for profit, you are affecting other people's lives. All are financial markets, and money is not born on its own, but from person to person. I mean, when you take profit, it means someone bought at a higher price and suffered a loss. The marketplace is a battleground where smart people win by taking money from other stupid investors. It's a financial harshness that many people don't understand.
The government doesn't print money and distributes it to all of us for free, bitcoin/land, the price increase is due to speculation by people like you and me, all of us. Every market will have winners and losers, no market will all win.

You don't get my point, sure speculating on Bitcoin mean it will make bitcoin price go higher and affect on other people's live. But are the effects at the same level that created by the housing market price soaring and people can't afford housing, please elaborate on what happened to people when they CAN'T AFFORD to buy Bitcoin, -not because they lose some money because they recklessly invest on it- do they suffer? do they struggling to keep their job because they life on the street? do they expose to criminality because they have no house as a safe place? because it happened to people who can't afford house, That's why comparing Bitcoin and Housing market is just non-sense

[DrBeer]

When you buy land/bitcoin to speculate for profit, you are affecting other people's lives. All are financial markets, and money is not born on its own, but from person to person. I mean, when you take profit, it means someone bought at a higher price and suffered a loss. The marketplace is a battleground where smart people win by taking money from other stupid investors. It's a financial harshness that many people don't understand.
The government doesn't print money and distributes it to all of us for free, bitcoin/land, the price increase is due to speculation by people like you and me, all of us. Every market will have winners and losers, no market will all win.

I don't agree and I'll make my point!
No one is forcing you to buy land/apartment/car at the price at which it is being sold. You are not forced, it's your decision!
It should be understood that all this is controlled by the MARKET, or rather the RESEARCH and OFFER.

Another thing to clarify - what you wrote that "when you fix a profit, it means that someone bought at a higher price and suffered a loss" - this is a delusion - he bought at a MARKET and ACCEPTABLE for him price. And he will have a loss if he sells that item for LESS than the purchase price.

[BitcoinTurk]

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 my monthly income or financial situation is sufficient to cover the prepayment and bank loan installments my preference will be to buy the property directly. This option will not only help to avoid rent expenses that we can consider as unnecessary expenses every month but will also contribute to our ownership of property after the debt is completed. Also, considering that the property will increase in value until the debt process is completed, I will have made an indirect investment. On the other hand, after purchasing the property under certain conditions there will be no change in the amount of installments to be paid or the increase in the amount of installments will be very low. Unfortunately, when it comes to renting a property this amount will increase each year and will continue to increase as a percentage each year if the earnings or salary are stable.
In summary, considering the mentioned conditions I think that the option of buying a property is more logical and attractive than the option of renting a property.

[MFahad]

If at this time we are still renting a house then we must have a target to own a house in the next 1 or 2 years, it doesn't matter if we have to have a house loan,  if we continue to rent, it is certain that property prices will continue to rise and it will be increasingly difficult to own a house, to be able to achieve this goal, of course, we must be able to save money or increase our source of income.

Everyone wishes to have their own place where they can live and no one wants to live on rent but it depends on the resources. I think that you are right that those people who are on rent will surely be in struggle to buy their own place and because of this struggle they will worked hard, reduces their expenses, and enhancing the way of earning money and it is possible that for this dream they start to involve in dual jobs as a single job is not enough to complete this dream.

The price of property increase it is true but instead of property everything goes to peak in price so we should try and work hard for everything to buy on time as it will be easy for us to manage and handle it on time in lower price.

[slapper]

When you buy land/bitcoin to speculate for profit, you are affecting other people's lives. All are financial markets, and money is not born on its own, but from person to person. I mean, when you take profit, it means someone bought at a higher price and suffered a loss. The marketplace is a battleground where smart people win by taking money from other stupid investors. It's a financial harshness that many people don't understand.
The government doesn't print money and distributes it to all of us for free, bitcoin/land, the price increase is due to speculation by people like you and me, all of us. Every market will have winners and losers, no market will all win.

I don't agree and I'll make my point!
No one is forcing you to buy land/apartment/car at the price at which it is being sold. You are not forced, it's your decision!
It should be understood that all this is controlled by the MARKET, or rather the RESEARCH and OFFER.

Another thing to clarify - what you wrote that "when you fix a profit, it means that someone bought at a higher price and suffered a loss" - this is a delusion - he bought at a MARKET and ACCEPTABLE for him price. And he will have a loss if he sells that item for LESS than the purchase price.

While your viewpoint on market operations and discretionary purchases is fundamentally sound and relevant to a degree, it may overlook the sophisticated dynamics of market systems. We are not bound to purchase a house or a car, but we cannot discount the external variables influencing these choices. Around the globe, asset ownership, such as homes and vehicles, transcends luxury - it's often about necessity and meeting fundamental needs such as shelter and mobility

Also, your assertion about market pricing and high-cost buying seems to bypass market manipulation possibilities. Contrary to your claim, one can experience a loss when buying at inflated prices, notably in fluctuating markets or during economic slumps when assets frequently lose value

[karimstolen]

Buying a property can provide long-term stability and the potential for appreciation, especially if the property values are rising. It also offers the freedom to customize your space and build equity over time.
On the other hand, renting offers flexibility and less responsibility for maintenance and repairs. It may be a better option if you prefer not to be tied down to a specific location or if you're uncertain about your long-term plans.
To make an informed decision, consider factors like your financial situation, lifestyle, and future plans. It can be helpful to consult with professionals, like those at https://axonproperties.ca/, who can provide expert advice and insights into the local market.

[adiksau0414]

I watched something related in this topic. He bought a real estate and use it as an airbnb while renting a space for his family which will suffice their needs. He enjoys the fruit of his decision, earning some while paying their mortage. The other one is, only used portion of the propety then develop it for airbnb also. So it really depends on how you handle.

[nur rochid]

If at this time we are still renting a house then we must have a target to own a house in the next 1 or 2 years, it doesn't matter if we have to have a house loan,  if we continue to rent, it is certain that property prices will continue to rise and it will be increasingly difficult to own a house, to be able to achieve this goal, of course, we must be able to save money or increase our source of income.

Everyone wishes to have their own place where they can live and no one wants to live on rent but it depends on the resources. I think that you are right that those people who are on rent will surely be in struggle to buy their own place and because of this struggle they will worked hard, reduces their expenses, and enhancing the way of earning money and it is possible that for this dream they start to involve in dual jobs as a single job is not enough to complete this dream.

The price of property increase it is true but instead of property everything goes to peak in price so we should try and work hard for everything to buy on time as it will be easy for us to manage and handle it on time in lower price.

many say to do something according to ability. With property prices soaring high, it seems that it is impossible to buy it, so many people choose to rent it. but if someone feels capable, then don't delay, because in the future it will be more expensive and that is certain. therefore in life we must have targets and priorities, so that there are no wrong steps in financial management, do not prioritize prestige in life, because in the end it will be difficult for us ourselves to live life with such a lifestyle

[Dr.Osh]

If at this time we are still renting a house then we must have a target to own a house in the next 1 or 2 years, it doesn't matter if we have to have a house loan,  if we continue to rent, it is certain that property prices will continue to rise and it will be increasingly difficult to own a house, to be able to achieve this goal, of course, we must be able to save money or increase our source of income.

Everyone wishes to have their own place where they can live and no one wants to live on rent but it depends on the resources. I think that you are right that those people who are on rent will surely be in struggle to buy their own place and because of this struggle they will worked hard, reduces their expenses, and enhancing the way of earning money and it is possible that for this dream they start to involve in dual jobs as a single job is not enough to complete this dream.

The price of property increase it is true but instead of property everything goes to peak in price so we should try and work hard for everything to buy on time as it will be easy for us to manage and handle it on time in lower price.

well, those are the difficulties to be faced when our goal is to own our own home. if we are still renting a house at this time, then the next goal is to have our own house. it's better, whether it's in the investment, or in the next thing. maybe we will get quite a lot of difficulties, such as trying to be more economical, and others. however, it will pay off when we already have our own home. in fact, it can be felt by our children and grandchildren in the future. look at the long term. I know that it is not easy to do this, and the source of income is very influential, but someone with strong beliefs should try to own their own home. very much to gain from it.

[ancafe]

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

It depends on each other's abilities because not everyone has the money to buy a house to live in. When your finances are not stable, choosing to rent is far more appropriate than forcing a purchase by taking a loan from another party. Because we are not so sure about our ability to pay off the loan to buy a house, it could be that on the way we lose our job and finally we are unable to pay the monthly fee for the loan taken.

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?

Under these circumstances there may be several factors that need to be considered according to our ability to buy or rent. When the nature is to buy then 10% or more of the costs incurred is not a problem because the property will be ours, the cost of ongoing construction work is also an adjustment to the dwelling we plan to build as a comfortable place to live.

When the choice is to rent, the consequence is that the rental price will continue to rise and we as tenants cannot do much. When asked the choice of buying or renting? the answer goes back to each person according to his ability and it is better to buy, even if by saving first to raise money.

[Uruhara]

Buying a property can provide long-term stability and the potential for appreciation, especially if the property values are rising. It also offers the freedom to customize your space and build equity over time.

if you already have good enough financial strength and have enough money to buy Real Estate then of course Real Estate investment is the safest and most promising profit if we enter it with patience. because we cannot enjoy the benefits of Real Estate in a short time. but it takes quite a long time to make its value increase significantly which brings multiple benefits for us Real Estate holders. I personally also have the main focus to grow my investment in this field.