Post Reply Rent or Buy (housing)
4146 cr points
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Posted 12/12/16
The cost of housing is going up and up each year-- i think in Silicon Valley the rent can be $65,000 a year in some areas..

so when it comes to Rent or Buy

would you rather rent or own the place you are living at ?

being a DIY -- I prefer to own the place-- at least I'll earn equity with each payment along with more freedom -- it has its downsides

while a co-worker of mine like to rent better - usually 6-12 months contract- he will not stay in one place for long so renting is more ideal for him.

people like to bring up HOA fees and property taxes when it's Rent vs Buy discussion

You also pay for these things as well even when you renting they already included them in your monthly rent

as property value went up so will the property tax-- it doesn't matter if you rent or buy
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24 / British Columbia, CA
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Posted 12/12/16
Depends on your job status and your marital status, and so many other factors. Already like the place you live (plan to stay long term)? Are you married? Do you children? What is the corporate climate of the place you work? Is it a job that is steady or one that frequently reallocates employees? What is the housing market, currently? Do you have kids? Do you plan to have tenants? There are so many variables to account for, that I cannot give you a true yes/no answer. You have to factor in all the above variables and see whether your comfortable with carrying a mortgage. All I can say is don't settle for a place, purely as an 'investment', if you don't have enough other reasons for buying.
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24 / M / Abyss
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Posted 12/12/16
I will rent a studio apartment until I settle down. Then I will buy a condo. I don't need a house as I never plan to start a family.

My condo preferably will have a nice kitchen, a study where I can keep my books, a nice mahogany desk that was passed down to me and a desktop for gaming/CAD/ArcGIS. I will have a small living room with a couch set and a TV. I will have one room and a bathroom. Now where to store my sword collection is another issue I will run into.

I don't plan to really settle down until I am 50 or so though. So much of the world to see, so much to do. I don't want to be chained down in the USA forever. I would love to do research on the alpine ophiolites in southern Europe...
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28 / F / SC
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Posted 12/12/16
rather buy buuuuut only in a place i feel like im gonna stay for a while. also if i can afford. i feel like rent money just goes nowhere >.>
Humms 
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25 / M / CAN, ON
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Posted 12/12/16
In terms of CAD

Always buy, because you never lose money. Renting is a money pit.

Though we might not have a choice, because some people have no choice but to rent. Unless the housing market in your area goes completely south, If you play your cards right you can make a lot more money from owning a house.

But hey, $20,000 -$40,000 down on top of bills, and depending on what's available, you can make something happen, because everyone is coming over and sweeping the market under us. Let's just say you're looking on average for $250,00 $300,000 homes, but nothing is stopping you from finding $125,000- $150,000 homes to renovate, and earn more equity.

And hey. If you're really smart you can just rent your house out to people so they can pay for your mortgage

But who does that?
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20 / M / Temple of Yaoiism
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Posted 12/12/16
Rent if you tend to move from place to place a lot, buy if you're going to stay in one place.
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22 / M / United States
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Posted 12/12/16

AnimeAddictANN69 wrote:

The cost of housing is going up and up each year-- i think in Silicon Valley the rent can be $65,000 a year in some areas..

so when it comes to Rent or Buy

would you rather rent or own the place you are living at ?

being a DIY -- I prefer to own the place-- at least I'll earn equity with each payment along with more freedom -- it has its downsides

while a co-worker of mine like to rent better - usually 6-12 months contract- he will not stay in one place for long so renting is more ideal for him.

people like to bring up HOA fees and property taxes when it's Rent vs Buy discussion

You also pay for these things as well even when you renting they already included them in your monthly rent

as property value went up so will the property tax-- it doesn't matter if you rent or buy


Okay, this is important to understand: never rely on your property building equity. Equity is very artificial and is only worth whatever the next person is willing to pay for it. It is almost always a recipe for financial ruin.

Objectively buying is better, as it is the sole way for a regular person to actually accumulate wealth. Your home, when paid off, becomes an asset regardless of any economic situation. Renting is an expense and it gets you nowhere. Buying a house (through a mortgage 99.99% of the time) is an investment which is guaranteed to provide you something of tangible value.

T;DR: Renting is an expense, buying is an investment.


Exception: If you flip houses for a living, then buying no longer becomes an objective investment, but a gamble. You are gambling that the house will build enough equity to make-up for the remodeling costs you put into it after buying it. If the house loses value before you sell it and after you invest into it, your gamble didn't pay off.
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M / USA
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Posted 12/12/16

Dogempire wrote:

Rent if you tend to move from place to place a lot, buy if you're going to stay in one place.


this is as real as it gets...I travel a lot for work, this is my 10th year of traveling, so I know, always rent unless you're not gonna live in a place for a while
4146 cr points
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Posted 12/13/16

Promethean wrote:


Okay, this is important to understand: never rely on your property building equity. Equity is very artificial and is only worth whatever the next person is willing to pay for it. It is almost always a recipe for financial ruin.

Objectively buying is better, as it is the sole way for a regular person to actually accumulate wealth. Your home, when paid off, becomes an asset regardless of any economic situation. Renting is an expense and it gets you nowhere. Buying a house (through a mortgage 99.99% of the time) is an investment which is guaranteed to provide you something of tangible value.

T;DR: Renting is an expense, buying is an investment.


Exception: If you flip houses for a living, then buying no longer becomes an objective investment, but a gamble. You are gambling that the house will build enough equity to make-up for the remodeling costs you put into it after buying it. If the house loses value before you sell it and after you invest into it, your gamble didn't pay off.


I know there are those who like to brag about their houses' price going up.. i'm the opposite

house price going up--> property tax + insurance going up--> escrow going up = mortgage payment going up

it's ironic when buying they will proudly declare that when you buy you will lock in the interest (which is true) and that your mortgage payment will never increase like rent -- which is a lie-- they will increase but not a lot like rent

your interest is fix.. yes. but your mortgage payment will change each year depending on your house value

house value goes up? insurance and property will also go up.. thus higher mortgage payment next year

so i for one wish my house price will stay the same or drop in price.. since i'm not planning to sell this house. increase in house value or equity has no benefit for me except higher mortgage payment !


as for house flipping-- people are watching too much reality tv sometiems.. what was that show? "property wars?" it was a funny show

they actually counted their chicks before they hatch type of thinking on that show

"projected net profits" ?

i'll avoid flipped house (easy to tell since purchase history is public's record -- sold and put on sell within a few months)

quick money will always comes with risk.. if i'm going to flip a house i'll fix it up myself-- but only do it on my free time as a hobby

so unless i paid off the mortgage of the current house i'll not buy another house any time soon

having 2-3 mortgages or loans out is a heavy burden i'll not risk-- one at a time is enough
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36 / M / SoFlo
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Posted 1/4/17
For where I live I have an amazing deal on my apartment which we rent. If it ever goes up I'm prepared to move out and buy.
Posted 1/4/17

Dogempire wrote:

Rent if you tend to move from place to place a lot, buy if you're going to stay in one place.


21428 cr points
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26 / M / Leanbox, Gameindu...
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Posted 1/4/17 , edited 1/4/17
Buy unless you like to have the flexibility to move around. Personally, I've dealt with landlords it sucks, that alone makes buying worth it for me even if I had to pay more. The only main exception would be a city like NY where if you aren't a millionaire you're never going to afford a house near public transit anyway so you kinda have to rent.

As for the case of Silicon Valley, I'd be relocating.
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27 / F / Overlord's Castle
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Posted 1/4/17
Always buy. You are just throwing money away renting a place. You are going to have a monthly bill regardless so buy the house so you can sell when the price goes up and make money instead!
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