Price is what you pay for value.
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Buy vs. Rent.
As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.
Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.
If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.
For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.
Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.
And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay. |
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uncle billy
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buying is always better if you can swing the financing etc. |
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Baby T
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buying. u are investing money into ur owe property. not some one else. |
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Ocean
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buying because u can sell the house for more when u move out! thats if u keep things nice |
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Kevin J
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Depends on what you want.
Buying, to me, is always better because your not throwing that money away, it's going to you owning what your paying for.
Renting is like putting cash in the trash can each month. You never see it again.
However, Renting is usually less expensive monthly (unless someone charges you more in rent than their mortgage is) and you can rent just about anywhere, whereas to own a home you need a loan from a bank or some pretty large amounts of cash on hand. |
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melody
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buying a house cuz then you dont have to pay every month dude |
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Bamos
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buying, hands down. you earn equity and its the path to wealth. only problem is if you can't accrue enough savings for a down payment or the maintenance of the house. |
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dukalink6000
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Buying; you'll have soemthing at the end of it |
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BOOTS!
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Buying. you pay for something you get to keep |
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+*♥Janai Stayz Ballin♥*+
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buying, because it's your property, and your money goes to owning it. |
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Ricky Lee
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with the prices of rent today I'd say buy. thats if your credit is good enough |
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Pey
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It depends on the situation. Check out the link below for a detailed comparison. My gut answer is if you are going to stay some place from now to eternity, find a good buy on a great house and go for it. If you are more transit, rent or lease. Housing prices are on the decline now so don't be in too big a hurry. |
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Tom M
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Buying cause eventualy u will own the house and when u rent a house you just throw the money out th window just to saty there. |
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Mr. LoK
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Buying!
but renting isnt that bad, sometimes.. |
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piperMaru
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buying a house that way in the long run u r actually spending the money for yourself not paying some one else their house or apt. then if u buy and maybe thinking about buying some place else u can just rent it and have some one pay for one of your houses/apts. |
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Bob
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Given the state of the mortgage and real estate markets - renting. |
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janette_d
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If you're willing to pay for the present average rent, you might as well buy your own house.
If you're budget is less than $1,000 only per month, buy a preforeclusure house or buy a condo.
Buying doesn't normally means that you're stuck with it for 15/30 yrs. You can sell your house after 2/3 yrs depending on your prepayment penalty (so you don't have to pay it) and buy a much better one. You can also refinance to get some cash and use that cash to do some uprades in your house or buy other houses/ condos for rentals.
It is the buyer's market this year, so take advantage of it if you're ready. You can get 100% financing wether or not you're a first time home buyer or an investor. Just talk to the right people... |
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Travis C
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As appreciation slows renting becomes a better option in certian cases. Things to look at.. How much will I save monthly vs tax deductibility of mortgage interest. Also look at the money you save monthly and how much of a return you would recieve if you invested that money?? Is it as much or more than the equity you gain in the purchase and sale of a new home?? How long will it take you to recoup closing costs??
Travis Carter
Lake City Mortgage
518-324-5544 ext 104
866-LOAN-930 |
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Amrouch
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Of course buying a house,because you Will own your place and you will feel safety & the owner can t get you out from your home.
In the other side if you calculate the money that you will spend in renting for 5 years earlier,you will figure out that buying the house is cheaper. |
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kathryn!
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buying it will be your own |
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chowderboxallnite
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Whatever you can afford. Buying is a good option if you have the money to do it. Not just the down payment and the monthly payment, but also money to pay for things that break and need to be fixed.
Renting is good for those on a fixed income that can not afford to have multi-thousand dollar repairs. Leave that for the landlord.
however if you rent you are just paying someone elses mortgage.
Right now where I live you can rent cheaper than you can buy. So that is not a good time to buy. The mortage on my house would be about 2400 if I bought it today, and I can only rent it for about 1800. |
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snow l
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Buying if appreciation will happen
of if breakeven
there is a website who can show ur comparision...sorry do not have handy |
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vampire2005
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I am a home owner and sometimes I wish I wasen't, but it is mine and although I can do what I want here every time something needs repair I have to fix it and it is expensive! you have all kinds of taxes today, water, sewer,school then you have to have ins. on the place if you can afford it go for it! theres no place like home!! but renting has its good points also- no taxes, no repairs and most landlords will let you do what you want as long as you don't wreck the place. Buying is a big investment it is somthing you really need to think about! Good Luck |
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mandm
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It all depends on how long you plan on living there. If you plan on staying less that 3 years, then renting is better. If it's more than 3 years then you should buy a house and build up equity. That way when and if you decide to sell the house later, your house will be worth more and you can save money when filing your income tax. |
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smartypants909
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When you rent you are making someone else's payment for them, but you are not responsible for the maintenance and repairs. When you buy you should build up equity so that when you sell the house you have that equity to put somewhere else, like a better house. But you are responsible for repairs and upkeep. |
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humanresourcesman
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My opinion is that first u find a good area with good schools. If u can buy the house and pay it off in 15 years, do it. Otherwise consider other factors. |
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nastea
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buying of course |
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Yahoo
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It depends on your prospective and how much money you have. Buying is great. You are building equity in something for the long term, and real estate is one thing that can't be manufactured. On the other hand, you are also buying all the expense of upkeep and repair, which can bankrupt you and make you to lose everything including the house. Renting on the other hand, is a simple, 'pay your rent and enjoy'. |
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matt l
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buying |
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FreeMedicalcamps.com
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Depends if you are going to stay longer you can buy.
if you are going to move out very soon you can rent. |
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jkhosho
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Buying because it's something you can show for yourself and your not paying someone elses mortgage... |
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