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What are the pro's and con's to renting over owning???

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posted on Nov, 7 2013 @ 09:45 PM
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Emerys

boncho
reply to post by Emerys

I can tell you for me, the answer is simple. Owning a home, and here is why. When you own a home, it is an investment, the money you put into it, you get back most of the time.

 


It's not an investment, it's a liability. Unless you buy it with cash, then it's an investment. If you have to meet a monthly demand for cost/money = liability.

There is a reason the system teaches you these things, and it aint to help people.


I have to argue against that. Just because you are taking a loan out against it, does not mean that it is a liability. I bought my home for just $90,000 a year and a half ago. My home is now worth $115,000 according to a recent appraisal. All because of new developments and growth in my neighborhood. How the heck would you call that a liability!?! I could sell tomorrow and make a 22% profit!


Exactly, and how many people lost 60% of their home values or had them foreclosed on during the credit crunch. Your logic is flawed in the system that it abides by.

If there were no market manipulation, no rising and falling interest rates, no rising and falling home prices, I would agree with you.

You are asking us to take anecdotal evidence from you (1 person) when anecdotal evidence from millions is much more telling.


Foreclosure rates of the late 2000s are often compared with those of the Great Depression, which took place through the first half of the 1930s. However, there were no public or private agencies keeping track of foreclosure rates at that time. Indeed, the government still does not keep an official statistic on the number of homes in foreclosure or repossessed by banks and lenders.


www.globalresearch.ca...

So as advice, yours is missing a large chunk of the story. You are kind of the reason so many people are without homes, as you and your industry encouraged this idiot behaviour.

agbeat.com...

Nearly four million foreclosures completed since housing crash


I know, I know… Im an economic heretic because I tell people to save their money and not to hand it over to banks.
edit on 7-11-2013 by boncho because: (no reason given)




posted on Nov, 7 2013 @ 10:38 PM
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If you have the money, I say OWN it.

The way I see it - 20-30 years down the road. What do you have to show for.



posted on Nov, 7 2013 @ 10:46 PM
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reply to post by spartacus699
 


Someone I trusted, and was in the business, described the answer to me...

If you can afford to buy a house outright (without repayments) do it.
If you can't, listen to the majority of economists who describe the lay of the land in your particular economy...

Rent, if the economy is depressed...more leverage on rent...
Buy, if the economy is booming...more leverage on purchase...

Å99



posted on Nov, 7 2013 @ 11:05 PM
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Think of it this way, you don't really own the land a house is built on.



The power to take private property for public use by a state, municipality, or private person or corporation authorized to exercise functions of public character, following the payment of just compensation to the owner of that property.

Federal, state, and local governments may take private property through their power of eminent domain or may regulate it by exercising their Police Power. The Fifth Amendment to the U.S. Constitution requires the government to provide just compensation to the owner of the private property to be taken. A variety of property rights are subject to eminent domain, such as air, water, and land rights. The government takes private property through condemnation proceedings. Throughout these proceedings, the property owner has the right of due process.

Eminent domain is a challenging area for the courts, which have struggled with the question of whether the regulation of property, rather than its acquisition, is a taking requiring just compensation. In addition, private property owners have begun to initiate actions against the government in a kind of proceeding called inverse condemnation.


legal-dictionary.thefreedictionary.com...

Buy an RV.



posted on Nov, 7 2013 @ 11:35 PM
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Night Star
You don't have a job. How can you own a house?


It's called planning a future. LOL



posted on Nov, 7 2013 @ 11:51 PM
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Mamatus
Purchasing a House is an investment. It should be treated as any other risky investment. Some people win, some people lose. It is simply gambling if looking at it as an investment.

It can also be taken from you by the Government or by the private sector in a lawsuit due to large medical bills, your dog biting someone, an accident if you don't have enough insurance etc etc. It can also surprise you with really big bills, like a new roof, cracked slab etc etc. To top that all off it is like a prison. You will be strapped to the same location until you sell it or agree to lose your shirt.

I prefer to rent from solid people. Years at the same place at $1200 a month, if something breaks I don't pay for it. Due to an established relationship my landlord could care less if I pay rent on the first or the 20th. If I need to move for any reason 30 day notice and I am out!

I will take freedom over "Fake" home ownership any day.......


The reality is in a sideways economy you're either renting from the landlord or you're renting from the bank in the form of a mortgage. But in the later case, you can't just up and leave very easy. That's one thing I really hate. The other options might be a mobile home which if you were able to set it up right and you buy an old mobile home for cheap, then it could be a good investment. Because worst case senario you didn't pay very much so you won't lose very much if the shtf. Or alternatively perhaps an RV even. An RV might even be a good option but again it's kinda tricky as you'd need to have a proper RV rental place to keep it. Which kinda bites. I guess there's pro's and con's to everything really. I think generally speaking though, you either need a really good income so that the cost of your rent is say only 10% of your monthly budget so you don't feel it much. Or if possible be able to live somewhere for free. Thats' probably the lowest stress scenarios. I think once you start paying 1/3 or 1/2+ what you make just to live somewhere, I don't know, you might have to, but I've been there done that, and I think I'd try and optimize over time to someplace where I'm not throwing away everything I'm making just to put a roof over my head. And or just try and make more money. I wonder if it was any easier in the cave man days, all you had to do was find a cave and you'd move right in. I guess you could move to detriot and do that still now in a sense. But you'd have no utilities. Which would suck.



posted on Nov, 8 2013 @ 12:19 AM
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I wanted to see if anyone would say it, and kdog nailed it.

I tell people that are looking for a home, its easy. Buy a mobile. This is considered a "vehicle" so whatever you pay in yearly taxes for your car, is what you pay for the house, NO matter the size. The smallest you can purchase could have 1 bedroom, and you can buy one for about $1000.00.

If you want to go bigger, get a 2-3 bedroom. Or do as I am doing and buy one at a time, and place them on your property, I already have 6 bedrooms, and 4 baths. The bonus with this as well, is that they all have monetary value, even the oldest and run down place can have collateral of about $10,000.00.

If you buy a mobile outright, you can buy a small place to put it, and pay depending on the size of your house. In the state I live in, the lowest you can pay for a 2 bedroom on a lot is $150.00 a month with garbage and mowing included. This will give you time to save up for land to put it on.

Just my 2 cents


peace, NRE.

I wanted to add, and if down the line you happen to fall into money, or buy a home, you can have the mobiles moved to any location. My intent is to buy 3 more 3 brm 2 baths, so that my children each have a home of their own when they need and or want it.
edit on 8-11-2013 by NoRegretsEver because: (no reason given)



posted on Nov, 8 2013 @ 12:19 AM
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reply to post by Emerys
 


That only works in areas where the housing market is growing and thriving... when the local economy crashes the housing market does as well. I know more than a few who purchased their home as an investment and when the local economy crashed...so did the value of their home. So they are stuck and unable to sell if they are paying on a mortgage more than the current market worth of the home.

I also own my own home free and clear. Due to luck and life and some hard work... I am in a semi-retirement stage. Since I do not currently have to work at the moment... I do not have the benefit of a tax deduction.. In fact, I get to pay around $3000 to live and more maintain my home. If I don't pay that tax... the county will take it.

In the end...homeownership is the best way to go depending on the area one lives and the local economy and market. Your financial stability should be taken into account as well. The market value of my home has increased 80,000 in the last 16 months. I purchased it two years ago. I am getting edgy and might sell soon because the growth in our local economy and the result of overbuilding of new homes caused by over speculation of real-estate investors. You have to purchase at the right time and sell at the right time.

If one is just looking for a permanent place to land... Ownership over renting is the only way to go if you know your long term financial stability is secure.



posted on Nov, 8 2013 @ 12:49 AM
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I have done both, owned (paying off a mortgage) and rented, which is where I am at the moment.
I am looking at moving to a country area, why, because the rent is a heck of a lot cheaper.
An example is, in the city suburbs I would be paying $400 to $450 per week for a four bedroomed house, in the country area I am looking at $240 per week, to add to this, two other people are sharing with me, $80 per week each, throw in an extra $20 per week each for utilities and round the price tag off to an even $100 per week each.

$5200 a year all inclusive, I can start eating steak again, I will still keep the cupboard stocked with bake beans though.

Rent share seems to be the trend lately where I live, I may be able to afford $400 rent per week but am I willing to pay that amount, NO! There are a lot of other things you can do with the extra cash, one is buying the odd ounce of silver bullion or two.



posted on Nov, 8 2013 @ 01:31 AM
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I'm someone who has rented all my adult life since leaving home at 24 (now 53).

I wont buy a home until/unless I am absolutely certain it's the right house in the right area; I have a pipe dream of buying a little cottage in rural Wales to be closer to relatives and be able to live out my days there. Probably wont happen, but it keeps me going.

It wouldn't make any sense to buy here and now because there are too many pitfalls...too many nutjob neighbours, gangs of youths roaming around, too little job security.

Any problems, I give my month notice and leave...which I've had to do numerous times (like 20-odd times in as many years).

Imagine if I'd had a mortgage...

My parents always bought their homes but, strangely, advised me not to.

Maintenance seems to be the kicker.

ETA: Trailers are an option...if you don't mind freezing to death each winter and don't forget to regularly empty your chemical toilet (lovely).

Bricks and mortar for this punter.
edit on 8-11-2013 by CJCrawley because: (no reason given)

edit on 8-11-2013 by CJCrawley because: (no reason given)



posted on Nov, 8 2013 @ 01:45 AM
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reply to post by CJCrawley
 



ETA: Mobile homes are an option...if you don't mind freezing to death each winter and don't forget to regularly empty your chemical toilet (lovely).


There is a difference between a "mobile home" and a trailer, you are talking about a trailer, and I know plenty of people that live in beautiful trailers, and they are not freezing to death, many of them have wood stoves, and have heating and cooling systems.


NRE.



posted on Nov, 8 2013 @ 02:23 AM
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reply to post by NoRegretsEver
 



I know plenty of people that live in beautiful trailers, and they are not freezing to death, many of them have wood stoves, and have heating and cooling systems.


Not the ones I've been in, bud.

But we're probably not that advanced on this side of the pond.

We have "travelling people" who keep getting moved on because people hate them - no trailer parks, as such.

I don't think it's caught on over here that much, which is a pity.

Could be a cheap option.



posted on Nov, 8 2013 @ 03:15 AM
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reply to post by CJCrawley
 


Well thanks for clarifying that you are speaking from a personal perspective, this is not ALL mobile homes, just the ones you know about.

Anyway, look into mobiles they are great, especially if you do your research. Fixer uppers are less but you have to fix them, but the bonus as I see it, is you can any remodeling you want, so there is both good and bad I guess.

Peace, NRE.



posted on Nov, 8 2013 @ 03:22 AM
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I am an 'average person'' who had an average job (retired now) And own my own home

which is the last of three moves I have made since leaving the parental home.

I paid a mortgage through out my working life and paid it off about 10 years prior

to retiring. But I opened a bank account and continued to pay what would have been

my mortgage into it as an insurance for any costs I may encounter regarding

repairs updating etc.

I am retired now and on a pension and have all the same out goings as every one else

eg. utilities, water rates, council tax - but unlike any one else who is still paying

rent I have that extra income to keep me a bit more comfortable and able to

have a few extra luxuries (in my old age Lol!)

Some one mentioned that no one ever owned their homes as the land belonged to the

government! Well not here in the UK they don't, >>> we have freehold and leasehold

properties and if you are shrewed you purchase the free hold and then that piece of

'land' belongs to you.

The one thing for sure in life is you need shelter (a roof over your head] you can

always if necessary eat frugally. You can share your home and charge rent for an

income and the recent surcharge (in the UK) for an extra bedroom does not effect

me as I am not being subsidised by social housing. If I am ever on the bread line I

can rent out my spare room .... but I do like my own space


So my answer to you OP is BUY but within your means and do NOT

overstretch your budget



posted on Nov, 8 2013 @ 07:05 PM
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NoRegretsEver
I wanted to see if anyone would say it, and kdog nailed it.

I tell people that are looking for a home, its easy. Buy a mobile. This is considered a "vehicle" so whatever you pay in yearly taxes for your car, is what you pay for the house, NO matter the size. The smallest you can purchase could have 1 bedroom, and you can buy one for about $1000.00.

If you want to go bigger, get a 2-3 bedroom. Or do as I am doing and buy one at a time, and place them on your property, I already have 6 bedrooms, and 4 baths. The bonus with this as well, is that they all have monetary value, even the oldest and run down place can have collateral of about $10,000.00.

If you buy a mobile outright, you can buy a small place to put it, and pay depending on the size of your house. In the state I live in, the lowest you can pay for a 2 bedroom on a lot is $150.00 a month with garbage and mowing included. This will give you time to save up for land to put it on.

Just my 2 cents


peace, NRE.

I wanted to add, and if down the line you happen to fall into money, or buy a home, you can have the mobiles moved to any location. My intent is to buy 3 more 3 brm 2 baths, so that my children each have a home of their own when they need and or want it.
edit on 8-11-2013 by NoRegretsEver because: (no reason given)


YA THAT'S IT....I'm gonna buy me a used beat up trailer, and I'll be the the roughest toughest white trailer trash honky this side of the apalayshions. I'll chew tabacco, smoke weed, get drunk and sit on the pourch, just me and my dog watching the sun set and dreamin about the good ole days!



posted on Nov, 8 2013 @ 10:39 PM
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reply to post by Emerys
 





I bought my home for just $90,000 a year and a half ago.


Wat. Where do you live? It always weirds me out how much home prices vary place to place. Friends bought a nice little house in another state for about $200k that would have cost probably twice that here.



posted on Nov, 8 2013 @ 11:36 PM
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kdog1982

Buy an RV.


You're obviously not married. Tell your wife who wants a family to raise kids in an RV. Let me know how that goes.




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