Op P
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Great question!
As a retired Mortgage Banker who has taught thousands of loan officers how to earn incredible incomes, I would love to answer it. There are SO many people hungry for answers to such a great question, that addressing them one at a time is SO ineffective. I have a free report available that anyone can access to get educated about all the "dirty little secrets" of this business and HOW we as a society ended up in such a mess.
It bothers me greatly that so many people, young AND old, have been taken advantage of and NEED answers to prosper financially and not become a mortgage victim. If you DON'T get educated BEFORE making a decision, you're next in line to be ripped off. Count on it.
I've been posting answers under numerous aliases on Yahoo! because I have to keep creating new accounts to do so. It seems the "establishment" prefers to keep the public in the dark when it comes to exposing the truth about anything which could actually help them avoid catastrophe. When faced with a serious choice about something in your past think about what you should have been made aware of by someone in "authority", but weren't. If you knew what "they" knew, wouldn't you have made a better decision?
Whether you're a first time buyer, moving up, refinancing, buying a foreclosure, short sale or trustee sale or auction, you're going to need financing in place. First. Doing it ANY other way is wasting your time and a professional real estate broker won't even LOOK at you or your offer unless your financing is in place. Don't believe me? Try it.
If you want to learn the industry from the inside, visit my website. I can't type the internet address here or I'll be creating yet another Yahoo! account. I'll spell it for you. MortgageSelfDefense[dot]com. Type that into your web browser as you would a regular internet address and you'll get there.
In addition to the information you'll receive on the site, if you decide to be a free subscriber, you'll receive tips, techniques and advice on regular intervals along with my personal contact information to ask questions.
I look forward to helping you.
P.S. I'm also a Real Estate Broker in two states (CA & NV) and have been since 1981. Having been so gives me a unique perspective on the industry. |
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Craig T
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That really depends on your current circumstances, if you are not sure of being in same place for at least 3-5 years you might be better off renting.
Most people underestimate the real costs of buying/owning, I'm not saying that renting is better just that the majority of people that just automatically assume buying is better have not considered all of the cost/expenses or the risks. |
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alenabobana3013
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buying |
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potts wot fickly piddle doo tod
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Its always better to buy if you can afford to, as rent money is lost forever. |
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julez
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Buy. ITs a better investment. |
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Cat
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It depends on your situation, if you are going to be crippled with mortgage repayments, maybe you should rent until you are in a better position financially as losing a house by default is an awful mess to get yourself in to.
Or say you were moving in with a partner for the first time, you might be better renting for a short while to see how you both got on and then you could consider buying together.
It's easy to upsticks and leave if you are a renter, but you never truly feel like it's your home as most of the time you can't do the home improvements you'd wish. And as everyone has said before, you are paying into something you will never own. |
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Chuck T
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Buy ,you retain the equity instead of making your landlord richer :) |
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Mario Dominguez
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sure buying
renting is just wasting your money on something youll never own |
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Gillian
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That is a great question and one only you can answer. I personally contemplated this question for several months before deciding to rent. Yes with renting you are just putting your money into something that you are benefiting out of (tax purposes); however, I know that if ANYTHING breaks in my apartment, I have a maintenance person to call and fix it! That's a responsibility I was not willing to take on, and it ultimately lead me to renting instead of buying. When I'm ready for the responsibility of maintenance and upkeep, I'll buy, but for now I'm renting!
You have to decide what's best for your current situation! |
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WhereTheBuffaloRoam
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now is the time to buy buy buy.
Its okay to rent while you are looking though.
Buying is where its at. Pay off the house and you
have huge equity. You don't get that with renting.
good luck! |
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mamma
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I would definetly say that buying is better. However renting serves a wonderful purpose. I rented an apartment for seven years, in order to save money , go to school, pay off a new vehicle and then save down payment on a home. It was a wonderful stepping stone. I am a homeowner now and it is one of the best things that have ever happened to me. But it has to be the right time in your life or it will be really hard. Hope this helps. Good luck! |
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ed r
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Buying for sure ,renting is like paying your neighbors car pay ment your never going to own their car. |
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Prophet 1102
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Buying is generally preferred over renting (housing that is), because 1) it's subsidized through tax deductions, and 2) you are building equity in the property.
However, in a declining property market, the key is to wait until the property values bottom out and/or the interest rates bottom out. Now that the Fed is lowering the prime rate, home buying might pick up again. So prices will start to climb.
But whatever you do, don't over buy - the agent's will always try and get you into more house than you can really afford. You should not buy more than your current rent payment will pay. Remember you can always buy another house later - most people live in multiple houses throughout their life. |
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saeed q
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We still haven't hit the "bottom" yet as far as home prices are concerned, and according to a Merrill Lynch report (http://money.cnn.com/2008/01/23/real_estate/merrill_forecast/?postversion=2008012317 ), home prices will drop another 15 percent this year, and declines will continue in 2009. The unknown is just how serious (http://money.cnn.com/2008/01/23/news/economy/how_bad/index.htm?section=money_mostpopular ) will the upcoming recession be? The FED is in full battle now in fighting against a monstrous deflationary force caused from the collapse of the housing bubble.
Should I buy yet? It really depends on your area. Real estate is local to a greater extent, just make sure you get a good deal, and by that I mean a very good deal. If you can negotiate a good price and intend to live there, I'm guessing you should be okay (yes, i did say guessing). Mortgage rates are at a 2 year low and expected to come down even further. This will make a difference and will bring in a lot of people who were on the sidelines back into the market. Okay, I'm starting to sound like a Realtor(TM) now. Simply put, I don't believe you should put your life on hold waiting for the absolute bottom and in some areas it may not turn out as you expect.
Be sure to do your homework and figure out what a property would rent for and compare that to what your monthly mortgage payments would be. Here's a calculator from the New York Times (http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html ).
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.
Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (its not advice, its advertising). Don't buy "it." |
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blklacquer
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buying of course, when you are renting...you are basically buying someone else a house. |
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Monte T
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Buying is much cheaper...when rental prices are climbing, purchasing prices are falling...now is generally the best time to buy. |
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Gella07
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buying |
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rykol222
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Buying is a better option if you are settling down, renting if you are single, or in college. I am owning my own home for over 2 years now, and we get money back for living here if we move! plus you are more private, no land lords, you can paint, exc. Buying is a great investment, you can make lots of money off of buying. |
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lisab
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http://www.ourfamilyplace.com/homebuyer/buyorrent.html
I have done both. Owning has been better thus far.
The market is pretty bad right now you can probably pick up some decent foreclosed properties, if you have good credit etc. |
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Guppy Fan
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This is the best time to buy. You can negotiate lower prices and sometimes the seller can pay your closing costs. I walked away with money when I bought a home after renting an apartment last September. |
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mimi
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At this time, with the market as it is, I would wait at least another year or even two before buying a house. Prices will continue to fall over the next couple of years because the market is saturated with homes that there are not enough buyers for. Interest rates will continue to stay low during the next couple of years. Good luck and good question.
Edit: I do agree that now IS a good time to buy, but if you can wait a year or two more you will definitely get more house for your money. Check out your local paper to see when foreclosures level off. Until they do, I would personally wait. It also depends on what part of the country you are in. I my area (Florida) rental prices are actually going down. But, if you are in an area where home prices are not falling and there are not alot of foreclosures, now may be a good time for you to buy. |
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Wonder Woman
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Personally, I like renting. I may not own the property but I don't pay property taxes and if something needs a fixin I just call the landlord. In this market, owning a house isn't worth anything! |
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Musica
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Buying is better for whom? For me, renting is best. Why? Because I don't want the hassles of maintenance and the taxes that come with homeownership. I don't want to feel trapped. Also, I don't feel the need to keep up with the Joneses and buying a house just because it's the expected thing to do. |
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rosie
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renting is obligation free, as long as you do not ruin the property and pay all of your bills, buying is a more expensive, and more jump the gun process... renting is easier paperwork, and lower in price. buying leaves you obligated to stay in that situation. |
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