Rent over buying of house?

[MArsland]

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

It's not always about profit when talking about owning a house, because in the end for me a house is a place where we will go home, there is a sense of security, comfort and tranquility without having to think about paying rent per month. Imagine if the economy were in dire straits and we couldn't afford the rent, and if we had a family, you have to move. Therefore owning a house is not just a matter of investment but more about protection and certainty of life.

[barbara44]

I think that previously he felt capable with the money he had, but his mistake was that he did not calculate properly, many of the people who did not build finished because of the wrong way of calculating, there are so many calculations that need to be considered when building a house, this is different from buying, buying you will only calculate the mark-up figure that has been made by the developer so it is already round and only needs to be negotiated while building yourself is a lot to miss, starting from materials, workers, consumption, time frame, and small details that are sometimes not calculated so it is like unexpected costs.

Sometimes there is also a misapplication of the budget plan, for example, in 2020 building a house is only $20k, and someone then saves for it and arrives in 2026 the money has been collected, the mistake is immediately implemented without recalculating costs which is very important to do because materials and others have increased in price and cases like this cause the construction to not be completed.

I would say that as someone whose parents did built their house, I have seen how that works, and saw what happens quite often as well while growing up. My parents built their own house, and they just needed a decent capital, like back in those days it was 3-4 months worth of salary, to just buy the unfinished version, so they bought a plot of land, hired some people, and built the unfinished brick looking version.

And then every month, they spent a bit to get something done, it could be the covering of outside, it could be painting inside, it could be kitchen, it could be bathroom, it could be lights, like every month it took something. For nearly 4 years, we kept on building it, not because it took 4 years to make it liveable, it took maybe 1.5 years to do that, but then you want smaller things too, like lets put some railings on the staircases is not a thing you come up with on day one, but after a while, when all else is done, you look for small things like that.

[BALIK]

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

It's not always about profit when talking about owning a house, because in the end for me a house is a place where we will go home, there is a sense of security, comfort and tranquility without having to think about paying rent per month. Imagine if the economy were in dire straits and we couldn't afford the rent, and if we had a family, you have to move. Therefore owning a house is not just a matter of investment but more about protection and certainty of life.

Owning a home can also be considered an investment and can yield returns. House is not just a place to live, it is also an asset that appreciates over time and can be inherited by future generation. Meanwhile, if you rent, you will have nothing to leave as an inheritance for future generation.

House is also an investment because if you no longer need it later, or if you own another house. You can absolutely sell it for a higher price or rent it out to generate passive income, something renting will never be able to offer.

[Mando100]

Though from my own perspective Renting a house is ideal when one is still growing financially, the resources one will use to buy a house can be use to start up a business enterprise and profit can start counting from then. Once you’ve been able to establish a business, you can start thinking of buying and owning a house while starting up a family.

Because when you stay in a comfortable house and don't have a good job , you can't move on right especially when you have already build up a family you need something to sustain yourself and your family too so has to live a fruitful life.

[SquallLeonhart]

Renting also does not solve that moment (if done for long period). Renting house for couple of weeks will do, but for a longer period, I doubt that house owner would come biweekly and cut grass or do something else, while you chill outside, do something outside or at work. In renting option, you can only ask owner for some assistance or contacts if something needs to be done with the house. Renting is imo a bad option as you turn into "a person who look after house and do all the maintenance, and pay for that".

The thing is that if you are renting a house, you are at the mercy of the owner, and while there are some laws that protects the renter, it is not as big of a deal as you think it is, and you are still just looking to someone else for everything. But when you own the house, while it comes with the costs of course, it is cheaper to pay mortgage than pay rent in most cases, which means that difference could be spent on the house itself and could give you more value.

When you do spend money on your home, it becomes more valuable for you in the future, and slowly you are building an asset. Remember, liability and assets are important, don2t get any liability if you don't have to, get some assets instead and you will be fine.

[Solodoski]

It was something most people was not realizing but now a lot of people are looking at importance of a house than a rented ones. If the car could worth 50k dollars and they're looking for money to acquire a property they should have sold it and use the 50k dollars to increase the one that is available because even if a car could be very helpful in fast movement and ease journey but it also has a way it becomes a liability to the owner especially those expensive cars that if anything got spoilt on the body is going to cost a lot to buy it, so actually maintaining is a lot money. Although the property shouldn't have cost much since your friend want to buy one room because is mostly when a person is buying a complete house with more rooms that it would be very costly.

People sleep in their car, so it is not an excuse. If they cant get a cheap home they should sleep in their since they don't want to sell it.
I don't agree that owning a home is better than rented house. Owning a home is good for a person who is not interested in passive income. I choose passive income more than regular income. It is more profitable to have extra income, because the house you own wont give yield any income.

[abhiseshakana]

It was something most people was not realizing but now a lot of people are looking at importance of a house than a rented ones. If the car could worth 50k dollars and they're looking for money to acquire a property they should have sold it and use the 50k dollars to increase the one that is available because even if a car could be very helpful in fast movement and ease journey but it also has a way it becomes a liability to the owner especially those expensive cars that if anything got spoilt on the body is going to cost a lot to buy it, so actually maintaining is a lot money. Although the property shouldn't have cost much since your friend want to buy one room because is mostly when a person is buying a complete house with more rooms that it would be very costly.

People sleep in their car, so it is not an excuse. If they cant get a cheap home they should sleep in their since they don't want to sell it.
I don't agree that owning a home is better than rented house. Owning a home is good for a person who is not interested in passive income. I choose passive income more than regular income. It is more profitable to have extra income, because the house you own wont give yield any income.

From my own thinking, primary house is stability foundation, it has different function with productive asset as growth machine. Owing a house can gie residential stability and certainty for family and it has psychological and financial resilience. Sleeping in car especially for family is not a realistic financial solution considering about health, security, work productivity and quality of our body mind and soul. When take course for financial planning, when planning cost efficiency we must maintain minimum standard of livinmg do not squezee ourself dor survival reason when phyuucsical, mental and social stability more important. Talking about passive income, its need strong and healthy foundation, investment always have risk and our cashflow can be up and down, please consider when we don't have a house, a small wave can ruin our all investment.

[Dreadboost]

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 really don't know what country you come from, but in my country owning a house is way better than renting and it's seen as a security for you to move to the next level. I think owning a house should be a plan for everyone,  especially if you are from my country.  I believe that once you own a house you have solved about 60%-70% of your problem. You don't bother about rent, which is very expensive from where I am from, so you can plan on your income excluding rent, which I think aside from.feeding take a large chunk of our income yearly. The money for rent can bow be channel to investment,  which will definitely improve your life.

[DYING_S0UL]

I prefer owning things, not renting. There might be several reasons for choosing to owe over renting and vice versa. One is mobility and another is affordability. I believe young people like to rent because they cannot set their eyes on one place, they like to explore, move to different cities, look for better opportunities. And money is also a key factor here. Owning a place costs a lot. And at some point, moving becomes useless imo (especially for the older ones), they are finally at their limits, done with the exploration and ready to settle in, retire in peace. This is what I observe at my place. Here the young people move to cities for better job opportunities, and after they have done/earned enough they would come to their villages and build their own houses, a place of their own, in their name.

[ASloveapg]

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

It's not always about profit when talking about owning a house, because in the end for me a house is a place where we will go home, there is a sense of security, comfort and tranquility without having to think about paying rent per month. Imagine if the economy were in dire straits and we couldn't afford the rent, and if we had a family, you have to move. Therefore owning a house is not just a matter of investment but more about protection and certainty of life.

I completely agree with you, home is where we live, a safe haven where we can be safe with our family and have some mental peace about the future. There is a big difference between renting someone else's house and living in our own house. Our own house is our permanent address, where we have no uncertainty, but in the case of living in a rented house, when income decreases or we face some unexpected problem, the rent pressure becomes a big concern for many families, and this kind of situation can sometimes cause a lot of problems. So owning your own house is undoubtedly much better and safer.

[rezakurnia66]

I prefer owning things, not renting. There might be several reasons for choosing to owe over renting and vice versa. One is mobility and another is affordability. I believe young people like to rent because they cannot set their eyes on one place, they like to explore, move to different cities, look for better opportunities. And money is also a key factor here. Owning a place costs a lot. And at some point, moving becomes useless imo (especially for the older ones), they are finally at their limits, done with the exploration and ready to settle in, retire in peace. This is what I observe at my place. Here the young people move to cities for better job opportunities, and after they have done/earned enough they would come to their villages and build their own houses, a place of their own, in their name.

Many people prefer for renting than owning house regarding their financial condition, I don't think most of their reason about how to explore about one place to the other place by renting house but how to manage well from financial condition get most difficulty nowadays. Renting house not make us pressure for monthly payment because owning house by instalment way or not paying fully cash make us have allocate outcome monthly for house payment, owning house nowadays need much money and many of us with lower salary payment difficult owning house with cash payment way.

Moving to cities exactly get increasing most qualities job with higher salary payment but have accept consequence high renting house or owning house, acceptable or not nowadays if want to buy house firstly have good salary but living in cities make us get difficult option indeed earn much salary but price of owning or renting house huge decreasing.

[DYING_S0UL]

Many people prefer for renting than owning house regarding their financial condition, I don't think most of their reason about how to explore about one place to the other place by renting house but how to manage well from financial condition get most difficulty nowadays. Renting house not make us pressure for monthly payment because owning house by instalment way or not paying fully cash make us have allocate outcome monthly for house payment, owning house nowadays need much money and many of us with lower salary payment difficult owning house with cash payment way.

Moving to cities exactly get increasing most qualities job with higher salary payment but have accept consequence high renting house or owning house, acceptable or not nowadays if want to buy house firstly have good salary but living in cities make us get difficult option indeed earn much salary but price of owning or renting house huge decreasing.

That's exactly what i just said. Financial condition greatly contributes/influences on what path we should choose, whether we should be going for renting or owing. That why I said owning is for the later part in life, when we have the financial means to finally settle in. iykyk...

With renting, it's much easier to move to places, as our jobs requires it, for better ways to travel. But with owing we simply can't do that, or explore any better opportunities. I was a renting person for a while, when I was studying in the city. At that time, I had changed my house several times, to make the distance between my home and my college lesser. But now, I don't need to, so I just live on my village home now, something that my family (basically me) owes.

[Junii]

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

I have a cousin who is a stocks trader i want to share his story with you. Back in 2017 he got married with a girl even at that time he does not have a stable job. On the same year his father passed away just before retiring from the job as he was a government servant he got pension a money in our country given by government to his employees after they retired at the age of 60. Many peoples told him to buy a house as he lives on rent with the father's pension . He didnt did that rather then he invest it in a stock market and with the dividend he pays the rent of the house and other sort of bills even at that time the dividend he got is huge. If i see the money he invested at that time he got 4x returns on it without dividend. So i think renting is usually better if you value flexibility and don’t have a strong down payment  or your income is unstable. Buying a house makes sense if you are planning long term stability and have decent savings  and your income can handle loan payments comfortably.

[BALIK]

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

I have a cousin who is a stocks trader i want to share his story with you. Back in 2017 he got married with a girl even at that time he does not have a stable job. On the same year his father passed away just before retiring from the job as he was a government servant he got pension a money in our country given by government to his employees after they retired at the age of 60. Many peoples told him to buy a house as he lives on rent with the father's pension . He didnt did that rather then he invest it in a stock market and with the dividend he pays the rent of the house and other sort of bills even at that time the dividend he got is huge. If i see the money he invested at that time he got 4x returns on it without dividend. So i think renting is usually better if you value flexibility and don’t have a strong down payment  or your income is unstable. Buying a house makes sense if you are planning long term stability and have decent savings  and your income can handle loan payments comfortably.

Whether you choose to rent or buy a home will depend on your financial situation and goals. If you are still in the wealth building phase, owning a home could slow down or disrupt that plan. In that case, renting is the most suitable option, just like your cousin did.

But once you have achieved your financial goals, it may be time to own a home. A home is not just a place to live, but also the foundation for long term stability in life. Especially if you have a family and young children, you cannot expect them to live in rented homes and keep moving from one place to another for the rest of their lives.

In addition, owning a home is also a way to diversify your asset.

[@nn@_pen9]

I do not get what would be the negative of buying a house? Like what is the reason that someone would prefer rent over owning if that is the only options.

I agree that if you are going to use the money for something better, or even make more money with that money than house could go up, then yeah, use the money and make more.

But that is a risk, and to be fair almost everyone buys a house with mortgage and not with just straight up cash. So I do not get why rent would be preferred option in this case, it makes no sense.

There is absolutely no downside to owning a home. However, everyone has their own perspective on buying a home via a credit you end up paying far more than the home's original price, and the repayment period is much longer potentially stretching up to 25 years. Even if you are already employed by a company and earn a standard or even above average salary, can you fully guarantee that the company will remain in business for the next 50 years? This is precisely what makes people think twice about taking out a credit. Your company could go bankrupt or collapse in the coming years. Have you not considered this? That is why renting is the alternative choice for most people because they take into account the factors I just outlined. What does the future hold for your job next search given that you are no longer young? Will other companies be willing to hire you? Naturally, companies tend to prefer candidates who are fresh to the workforce and significantly younger than you.

[nara1892]

It depends on your needs. For example, if your job requires you to move frequently, renting might be more effective than buying. Furthermore, if you rent, you don't have to worry about maintenance. However, the downside is that you lose money because you're renting rather than buying an asset. So, you don't own the property after the lease expires. The opposite is true if you buy a house.
As I said, it depends on your situation and needs. It's like buying an automatic or manual vehicle; both can run, but the feel is different.

[ndutndut]

Changing your mindset about whether to own a house or rent essentially depends on your current financial situation. Owning a home is certainly everyone's dream, especially since owning your own home will be the most comfortable place to live. However, whether owning a house is a wise choice or renting is wiser depends on your individual financial situation.

This means we must be smart in calculating mathematically before choosing. We must calculate rent versus buy and compare the total costs over the next 5-10 years, including opportunity costs, taxes, insurance, the down payment and how the monthly installments will fare if invested in other instruments. Sometimes renting plus investing yields a greater net worth than buying a house, especially if you pay in installments over the next 5-10 years. Therefore, renting while investing and building a career is the best option, as you can buy a house later when your finances are stable or you have passive income.

My point is, own a house because it's the right choice for you, not because you have to or because you're forced to. Many financially successful people actually rent homes for years while their wealth grows in other assets through investments. So, we really need to shift our mindset from "When should I buy a house?" to "What choices best support my life goal of achieving financial freedom now?"

[junder]

It's not always about profit when talking about owning a house, because in the end for me a house is a place where we will go home, there is a sense of security, comfort and tranquility without having to think about paying rent per month. Imagine if the economy were in dire straits and we couldn't afford the rent, and if we had a family, you have to move. Therefore owning a house is not just a matter of investment but more about protection and certainty of life.

I agree with what you said that it is our home, where we feel safe, comfortable, and calm without having to think about monthly rent.

But on the other hand not a few people who have good family members to make it uncomfortable including me, here I live under the same roof with my family but actually this makes me uncomfortable because there are some family members who do not know themselves with reasons that are basically bad because if you explain this it might be quite long.

From this case I want to separate the roof either renting or buying a house but obviously buying a house is my own dream.

[Swordsoffreedom]

It depends on your needs. For example, if your job requires you to move frequently, renting might be more effective than buying. Furthermore, if you rent, you don't have to worry about maintenance. However, the downside is that you lose money because you're renting rather than buying an asset. So, you don't own the property after the lease expires. The opposite is true if you buy a house.
As I said, it depends on your situation and needs. It's like buying an automatic or manual vehicle; both can run, but the feel is different.

I think using frequent work relocation to justify renting over buying is more of an excuse than a sound financial decision. Because a home is not just a place to live and meet daily need. When you own a house, you own an asset and its value will increase over time. Owning a home means you are investing in and accumulating asset, instead of just paying rent without creating long term value

The only reason some people do not want to own a home is because they cannot afford it, IMO. Because, in reality, owning a home today is close to an impossible task for many people.

[bakasabo]

Changing your mindset about whether to own a house or rent essentially depends on your current financial situation. Owning a home is certainly everyone's dream, especially since owning your own home will be the most comfortable place to live. However, whether owning a house is a wise choice or renting is wiser depends on your individual financial situation.

This means we must be smart in calculating mathematically before choosing. We must calculate rent versus buy and compare the total costs over the next 5-10 years, including opportunity costs, taxes, insurance, the down payment and how the monthly installments will fare if invested in other instruments. Sometimes renting plus investing yields a greater net worth than buying a house, especially if you pay in installments over the next 5-10 years. Therefore, renting while investing and building a career is the best option, as you can buy a house later when your finances are stable or you have passive income.

My point is, own a house because it's the right choice for you, not because you have to or because you're forced to. Many financially successful people actually rent homes for years while their wealth grows in other assets through investments. So, we really need to shift our mindset from "When should I buy a house?" to "What choices best support my life goal of achieving financial freedom now?"

Isnt it a old stereotype that if you own a house you have succeeded everything in life (addition to having a family, child and planting a tree) ?

I prefer to rent a house for week or two. Or going away from city for holidays. For me this is perfect to get rest from busy life. Right now I dont own a business to enjoy life and do nothing. Maybe if I was that person, I would own a house. So far city is what I need. Because of benefits that if offer (entertainment, shops, activities, deliveries, everything is in 10-15min aways).