Rent over buying of house?

[freedomgo]

I don't think mobility is often the priority. Maybe if you think you don't see your future living in that area, then its best to just stay renting while the opportunity to work there is still there. But mostly, those who often think about this are only those young bachelors who have never plan to build a family of their own yet, but once they settle down, given the fact that their source of income is there and they also learn to love the place, eventually their priority changes.

Buying a house is still the best option if you can afford the cost, and its for long term goal. But if not, there's no wrong from renting, but make sure to secure a home of your own before retirement comes as you can no longer work over long hours because your body slowly becomes weak already.

[slapper]

You are a child and someone shows you this picture of a house and tells you that this is what it's like when you arrive. And you carry it. For years sometimes. Decades. Younger people are also feeling a sense of loss over something they were promised and then denied because of the cost. Mobility is real. Flexibility is real. And it's also a way to deal with an accessibility issue. The man in power doesn't want to name directly, because he has to acknowledge that wages and property parted ways, and in a catastrophic way, and intentionally.

Permanence isn't the problem. Permanence that was promised and then extracted. This is what we're debating. And we're calling it a lifestyle choice rather than what it is.

[uchegod-21]

A freelancer who works from home and is sure that they'll continue to work from home can decide to buy a house.

But someone whose nature of job pushes from one city to another will likely continue to rent until it is time for retirement.

This also depends on the background of the person and the country they leave.

Some countries make it so hard to own a home and easy to rent, so I'll not blame those that choose renting over owning with good reasons.

For me, I'll own a home and if I still want to rent, I'll still rent.

[fuguebtc]

A freelancer who works from home and is sure that they'll continue to work from home can decide to buy a house.

But someone whose nature of job pushes from one city to another will likely continue to rent until it is time for retirement.

This also depends on the background of the person and the country they leave.

Some countries make it so hard to own a home and easy to rent, so I'll not blame those that choose renting over owning with good reasons.

For me, I'll own a home and if I still want to rent, I'll still rent.

Even if your job requires frequent travel and relocation, you still need a  house. You will not be able to rent a house until you retire because, sooner or later, you will need to get married and have children. Your family's stability and your children's future will become unstable if they constantly change living environment and school throughout their lives.

That said, I agree it also come down to each person's background and circumstances. If they can not afford to buy a house, they have no choice but to rent.

[justdimin]

Good catch. From people who own a house I always hear that they want a nice and quite place to live. Nice and quite place is always 30-60 minutes ride from town as minimum. So not only you spend time in loaded traffic in city, but also spend a lot of time twice a day to get home. Such person and family are also strongly bind to transport. Car suddenly breaks down and you have to reschedule whole day. So far I see more disadvantages than advantages in buying or renting a house.

Best experience would be renting a house that is not far away from sea, river or lake during Summer season. Taste the delights of living in quite place, feel nature, cook meat regularly. Then move out back to civilization when time of area maintenance begins (leaf and snow removal and etc). 

How much your 30 minutes a day worth? How much does your 1 hour worth (going and coming back)? Mine is worth less than the difference between mortgage payments and rent payments. So let's assume that you spend 1 more hour per day, if you own a house, but you also pay 1000 dollars a month instead of 1500 dollars a month, and you also end up owning something in the end.

What people are forgetting is that, yes you are wasting time, and yes time is valuable, but if you own the home, that's the end, you now own it, and you pay less to own it, then to rent somewhere closer to your work. I rather waste 1 more hour of my life than spend 1 hour less on traffic but pay 500 dollars more to own nothing in the end, that makes no sense.

[Patikno]

Is owning a house now a liability? If so, how do you shift your mentality of dreaming of owning a house to just renting? There’s pros and cons each to renting and owning a house. But I have heard that younger people nowadays prefer renting over actually buying a house. Because of mobility being the priority. Plus, a house is only profitable once you sell it. But otherwise it’s stagnant.

This is only a perspective from my country. Is it the same for others? Is permanence now a bad thing?

Owning a home is far more profitable from every angle, and can be a win-win situation. Owning a home can reduce monthly expenses, that are usually a burden (from renting a house), and when it comes to mobility, the house (owned) can also be profitable when rented to others. Furthermore, land prices also increase every year, which means it can increase the price of the house, especially if the location is strategic enough. So, I think owning a house is better than renting one. Well, this is my perspective from what I have observed (in my area).

By the way, in my country, young people are currently trending towards taking out mortgages. Many people do this, because, it is easier to own a home without having to have the entire amount of money upfront, as they generally only need to make monthly installments. However, I think buying a house with cash more convenient than a mortgage, as it carries more costs, especially with a longer term. Apart from that, I think a Subsidized Housing Loan might be another option rather than having to take out a mortgage, or rent a house (if you compare the costs). I don't know whether it exists in every country or not, but in my country it does.

[bakasabo]

Good catch. From people who own a house I always hear that they want a nice and quite place to live. Nice and quite place is always 30-60 minutes ride from town as minimum. So not only you spend time in loaded traffic in city, but also spend a lot of time twice a day to get home. Such person and family are also strongly bind to transport. Car suddenly breaks down and you have to reschedule whole day. So far I see more disadvantages than advantages in buying or renting a house.

Best experience would be renting a house that is not far away from sea, river or lake during Summer season. Taste the delights of living in quite place, feel nature, cook meat regularly. Then move out back to civilization when time of area maintenance begins (leaf and snow removal and etc). 

How much your 30 minutes a day worth? How much does your 1 hour worth (going and coming back)? Mine is worth less than the difference between mortgage payments and rent payments. So let's assume that you spend 1 more hour per day, if you own a house, but you also pay 1000 dollars a month instead of 1500 dollars a month, and you also end up owning something in the end.

What people are forgetting is that, yes you are wasting time, and yes time is valuable, but if you own the home, that's the end, you now own it, and you pay less to own it, then to rent somewhere closer to your work. I rather waste 1 more hour of my life than spend 1 hour less on traffic but pay 500 dollars more to own nothing in the end, that makes no sense.

It is not about how much time worth, but the difference in rent pricing. Previously in this topic I have shared that people pay 2-3k EUR for renting a house outside the city. You can rent a good recently build apartment in the city for 1k EUR. What will you get for 1-2k EUR price difference? Ability to on Saturday-Sunday walk outside to drink coffee standing barefoot on the grass, while breathing fresh air? How many weekends like that there is going to be? What you also get are weekly tasks to cut grass, to clear snow and leaves daily, your friend will think that your house is free place to hang out during summer (you will have to do all the cleaning after). Pray that nothing break during your rent. Pray that your wife wont decide that you need a garden now or you will be planting own vegetables now and etc. I think that house owners rest and spend more than apartment owners.

[Leahized]

I think I like it having a permanent structure I could call my own house right in my hometown than having it anywhere else, but I would prefer establishing some businesses first making sure they have gained root before I could actually think of having a permanent house in city where I live. That doesn't mean it's bad to live in family houses. The cons and pros are depending on the perspective of the individual and the location he resides, especially where you have to be paying landed tax for your house.

As far as I understand, you have to pay taxes to the government for your own house land but it's not bad because owning a homestead is important. Your plan is to try to build a house in a much better city.It is possible to build any organization on your own. This will create a good employment. Then after becoming financially independent it is possible to do everything permanently. Anyway I think living in own house is best and has more freedom. Which is not possible to get in a rented house.

[Cossyblack]

I think I like it having a permanent structure I could call my own house right in my hometown than having it anywhere else, but I would prefer establishing some businesses first making sure they have gained root before I could actually think of having a permanent house in city where I live. That doesn't mean it's bad to live in family houses. The cons and pros are depending on the perspective of the individual and the location he resides, especially where you have to be paying landed tax for your house.

Owning a house is better anywhere as long as it is in a peaceful area but it is crucial for one to also erect a structure in his home town. This is because we cannot live in foreign lands forever, whether we like it or not we will someday retired back to our hometown. When we retired back to our hometow it is the house we have built that we live in and enjoy retirement..if we have houses in the cities, it is also an investment as we can rent them out and survive on the money during retirement. However they is respect when you owed your own personal house rather than sharing rooms with family members in a family house. Owning a personal house is better from my perspective, whether is in your hometown or anywhere of your choice where it is safe to build and do business..

[uchegod-21]

A freelancer who works from home and is sure that they'll continue to work from home can decide to buy a house.

But someone whose nature of job pushes from one city to another will likely continue to rent until it is time for retirement.

This also depends on the background of the person and the country they leave.

Some countries make it so hard to own a home and easy to rent, so I'll not blame those that choose renting over owning with good reasons.

For me, I'll own a home and if I still want to rent, I'll still rent.

Even if your job requires frequent travel and relocation, you still need a  house. You will not be able to rent a house until you retire because, sooner or later, you will need to get married and have children. Your family's stability and your children's future will become unstable if they constantly change living environment and school throughout their lives.

That said, I agree it also come down to each person's background and circumstances. If they can not afford to buy a house, they have no choice but to rent.

I get your point, and I clearly understand the importance of stability for a family. However, my point is not to discredit the importance of owning a house. The point is that a job that makes you change locations a lot will make owning a house a less practical option, except you are building the house to earn rent from it.

As a single person who travels a lot, having a permanent house somewhere you are not living in makes no sense.

If I have a family, I'll make a decision that will be in the best interest of the family. Like I said above, I will definitely own a house for the sake of retirement.

[AmaGold70]

Is owning a house now a liability? If so, how do you shift your mentality of dreaming of owning a house to just renting? There’s pros and cons each to renting and owning a house. But I have heard that younger people nowadays prefer renting over actually buying a house. Because of mobility being the priority. Plus, a house is only profitable once you sell it. But otherwise it’s stagnant.

This is only a perspective from my country. Is it the same for others? Is permanence now a bad thing?

If you have money to build your own house, it is better to do so, instead of renting house all the time. In my own country, renting a good house is very expensive, and every one struggle to own there own house instead living in a rented home. If you own your own home, even when you are no longer there, you can still rent it out, and use that same money for other things or even use it to pay for rentage elsewhere. Sometimes life can be so unstable, some persons misused the opportunity of owning their own home in the past, and today there is no money to build a house any longer. Building your own house is a very big achievement, but when you rent a home, is not any achievement because house increment can make you loose it.

[Agathamay]

Is owning a house now a liability? If so, how do you shift your mentality of dreaming of owning a house to just renting? There’s pros and cons each to renting and owning a house. But I have heard that younger people nowadays prefer renting over actually buying a house. Because of mobility being the priority. Plus, a house is only profitable once you sell it. But otherwise it’s stagnant.

This is only a perspective from my country. Is it the same for others? Is permanence now a bad thing?

Your first house is your security.
Your 2nd, 3rd and so on - are investments. That's it.

Younger people don't "choose to rent", they just can't afford anything else.

"Choosing" to rent when you actually CAN afford a house because you think the market is overpriced is basically shorting it while your rent payments are like funding to keep your short position open and that involves typical risks.

you truly deserve the merits you got on your response and yes i also totally agree with your approach and i think op is also from Nigeria i guess and for me, if i have the finance, what i would prefer to do is, i would buy a portion of land and rather than build a private living house, i would rather build maybe 2 bed room flats on a one story decking where i would have a comfortable two bedroom lats to myself and still have people rent the other 3 sets of two bedroom flats and by so doing, i would have a comfortable space while i still generate revenue from the rented ones in same compound

regardless o whatever we choose to do, having our personal house without paying rent to anyone is one major luxury that is under rated in past times and not now and i agree with you that, no one would have the money to buy or build a house and rather prefer paying rent because they think the market is over priced, because i believe anyone who can afford buying or building would do because we all know how appreciative the real estate industry has become recently.

[Hamza2424]

Your first house is your security.
Your 2nd, 3rd and so on - are investments. That's it.

Younger people don't "choose to rent", they just can't afford anything else.

"Choosing" to rent when you actually CAN afford a house because you think the market is overpriced is basically shorting it while your rent payments are like funding to keep your short position open and that involves typical risks.

Haha, you nailed it bro, that's the reality. Those who can afford are buying houses, while the rest of the youth, which is high in number, are renting apartments or houses, and most of them are sharing because rent is even too high for some to cover. If someone ever has enough money, they will buy a house with no chance of saying it is a bad investment, especially if they have been renting for over a decade now.

If we buy a house, we won't only save funds but we will save ourselves from years of struggle and stress we take to cover the rent. Those who live in rentals can relate to how it feels at the end of every month when we have to manage money haha, the feeling is not very good.

[Cookdata]

Is owning a house now a liability? If so, how do you shift your mentality of dreaming of owning a house to just renting? There’s pros and cons each to renting and owning a house. But I have heard that younger people nowadays prefer renting over actually buying a house. Because of mobility being the priority. Plus, a house is only profitable once you sell it. But otherwise it’s stagnant.

This is only a perspective from my country. Is it the same for others? Is permanence now a bad thing?

I'm going to use my region to explain housing condition to your questions because region varies with housing. We are dealing with unstable inflation over here and it has become a habit of increase in house rent, you are not guarantee of paying previous amount of house rent in this, it's either you wake up by 20%, or even 50% since it's yearly and these increases are more than the rate at which inflation is growing in the last 4 years, so it makes sense if you can get your house and stop paying rent, in fact it make sense to say you have solve 50% of your year bill if you have your personal house.

If you buy a house, you are going to save a lot in rent cost be because there is no guarantee you are paying the same thing in the long run. You are likely to get evacuated if the owner decide to sell the property because new owners might want to renovate and comes with new policy that will cover his investment. All this uncertainties will only put you in a tight condition. I will buy or buid a house than rent if I'm going to stay there for long period of time, there is an option to resale if I don't want to stay there again.

[Versatile_choice]

[Edited out]

Owning a house is better anywhere as long as it is in a peaceful area but it is crucial for one to also erect a structure in his home town. This is because we cannot live in foreign lands forever, whether we like it or not we will someday retired back to our hometown. When we retired back to our hometow it is the house we have built that we live in and enjoy retirement..if we have houses in the cities, it is also an investment as we can rent them out and survive on the money during retirement. However they is respect when you owed your own personal house rather than sharing rooms with family members in a family house. Owning a personal house is better from my perspective, whether is in your hometown or anywhere of your choice where it is safe to build and do business..

Yes, it's very important to build a house in your home town. In my country it's like a mandate reason been that when the unknown "death" comes, they can't bury the person outside if not in that country where he came from. Yes, this has happened several times where a man left his hometown to a different country with the hope of starting a new life there meanwhile he doesn't have anything like land or house in his home town,  when he died they took him to the grave yard to bury when they are supposed to bury him in his own land if he had got one so this are the importance of owning a land or house in our country and there are other advantages of owning a land or building a house in our country.

[henmark]

It's sad that people consider homes as an investment asset and is probably one of the major problems with society these days. There are so many business and investment opportunities out there, but residential property should not be one of them or it should be limited at most to three homes maximum per beneficial owner. A large reason for young home owners struggling to afford property is the fact they are used as assets for generating profit, rather than a necessity that people need to live. Many renters would likely become home owners if the prices were lower, but they are trapped in a perpetual cycle of rising prices because vultures are amassing hundreds of houses to make millions in profit every year.

That's the way of the world, and it won't get changed, unfortunately. Those with a lot of money will use that money to make more money, and to do that, they can use any medium, and housing and real estate is one of the most profitable mediums of making money for these people, because as we keep moving into the future, the prices of the properties will keep getting expensive, and that's because of the increasing demand.

The population increases, and people living in old houses or places would like to move to new ones if they can afford it, so the sellers or owners of the new ones will demand higher prices because of the demand.

One could argue that if people leave old homes and move to new ones, the old ones should keep getting cheaper and affordable for others to buy, they do, somehow, but not very much, because even their owners will increase their demand because they know there will be a lot of willing buyers out there, and this is the reason why it has become extremely difficult for the younger generation to buy houses of their own, and they go for renting since they know they can at least pay that with their salaries.

[EarnOnVictor]

-Snip-
This is only a perspective from my country. Is it the same for others? Is permanence now a bad thing?

Housing discussions are almost entirely the same globally, except for some pressing issues at times, which makes what you said applicable to other countries too, especially my country.

You see, house will always be an asset, and not a liability, regardless of how you want to look at it and the house owner's pressing needs. If it's about the fear of relocating, why not rent where you newly relocated to, and sell the house you have to rebuild there? You said it yourself that house is valuable when sold. Mind you, relocation shouldn't be the total reason why owning a house be viewed as a liability, as there are permanent and temporary relocation.

Another reason why some people could wrongly view house as a liability is because of "investment." Tying a huge amount of money down when you can invest it to make more is ill to some. But fate often teach some of them bitter lessons when the investment didn't work as planned. But your house is yours!