Owner or Renter

• HelloAgain

  ZWICK 4 PREZ;1639228 wrote:Yeah except for the fact that anywhere worth living

  You live in Canton.
  

  I've bought and sold 2 houses and am building one now. I've stayed in my last house for 5 years and was able to sell and make 7,000 on it. Adding the down payment and equity I've netted an additional 16,000 totally 23,000 I got at closing that I was able to use to put down on my construction loan. So tell me where that money would have went if I was renting?
  My wife had a house before we married. She tried to sell but couldn't so she rented t out. Her mortgage insurance and taxes totaled ~ 800 a month. We rented her house for 1100 a month. So let's hear again how renting is cheaper for you.

  This is nice anecdotal evidence and I'm happy for you. Clearly for you and your wife, buying a house was the right decision all things considered. But overall, the numbers bear out that a house is a very low yield, low risk investment. Nothing wrong with that, but not everyone wants to make a large upfront payment and then be tied into a low yield investment for a decade plus. They can come out ahead pursuing other investment vehicles.
• ZWICK 4 PREZ

  

  HelloAgain;1639232 wrote:You live in Canton.
  
  
  
  This is nice anecdotal evidence and I'm happy for you. Clearly for you and your wife, buying a house was the right decision all things considered. But overall, the numbers bear out that a house is a very low yield, low risk investment. Nothing wrong with that, but not everyone wants to make a large upfront payment and then be tied into a low yield investment for a decade plus. They can come out ahead pursuing other investment vehicles.

  
  Well since this is probably your 4th username it's hard to tell who you are but that doesn't matter.
  
  Canton has 3 Fortune 500 companies and is headquarters for the shale boom. But don't let facts cloud your judgment.
• Pick6

  

  thank you zwick for being the voice of reason in this thread. cant believe how many people are hinting that renting is a better financial decision. An appliance breaks? boo freaking hoo. Its not like it happens constantly. You don't pay property taxes? lol..95% of the time you are paying the complete mortgage + in your rent. The landlord isn't renting for the fun of it. You're building their worth.
  
  I rent. I rent because I'm unsure what I want to do with my future. Settle in NE Ohio, move back home, or move somewhere down south. I think I'll make that decision within the next year and I'll probably buy for option 1 and 2, but wait a few years if I move away so I'll have a good feel for the area. I could buy a nice starter home in a nice Cleveland 'burb for 600-700 (including taxes and insurance) a month with 20% down. Roommate and I currently pay $824/month in a great location in a great area. I'm still young and single, if I bought a house I'd have a roommate (good friends, not randoms) or two, cut them a deal, and have them pay me $300 a month for rent for a few years. In this realistic scenario, I would be paying less than I do now in rent, actually making extra money, and building equity at the same time. I also would like to own for just the personal pride of having something that is mine and taking care of it/doing whatever I want with it. In the words of by boy Nick Gilbert, what's not to like?
  
  Renting is nice for flexibility and the convenience of not having to worry about maintenance. That's about it.
• GoChiefs

  

  ZWICK 4 PREZ;1639228 wrote:Yeah except for the fact that anywhere worth living (ie: jobs) it's more expensive to rent than own. I've bought and sold 2 houses and am building one now. I've stayed in my last house for 5 years and was able to sell and make 7,000 on it. Adding the down payment and equity I've netted an additional 16,000 totaling 23,000 I got at closing that I was able to use to put down on my construction loan. So tell me where that money would have went if I was renting?
  My wife had a house before we married. She tried to sell but couldn't so she rented t out. Her mortgage insurance and taxes totaled ~ 800 a month. We rented her house for 1100 a month. So let's hear again how renting is cheaper for you.

  Paid $69k for my home in 2004 that was valued at $78k. Then the market crashed, and the value dropped substantially. I was paying $750 a month for a home now valued around $45k. I still owe $55k on the property. Clearly owning has worked out well for me! Now, I'm not against owning, obviously, as I will be doing again. Just doesn't work out for everyone.
  

  ZWICK 4 PREZ;1639228 wrote:I'm not taking anything personally, I just like to call people out for spewing bullshit.

  Except, you called me out. Who was spewing the fact that you were indeed wrong. Yes, I realize I'm in a very small minority, but it does certainly happen.
• OSH

  

  There are websites out there that help with the decision on "rent v. own."
  
  There are all kinds of variables that play out in the decision, and the websites help. I like them. Are they 100% accurate? Probably not, but they can help give a general idea. In our case, we plan on staying at least 5 years, so we'd be better off buying a house unless we can find a place to rent for $444 per month or below. That is definitely not really a possibility where we live.
  
  I'm real good friends with a banker, and he definitely encouraged us to buy the house we ended up buying. He believes that we'll definitely make out better in the end due to the value of the house and it's resale chances being in our favor.
• ZWICK 4 PREZ

  

  GoChiefs;1639281 wrote:Paid $69k for my home in 2004 that was valued at $78k. Then the market crashed, and the value dropped substantially. I was paying $750 a month for a home now valued around $45k. I still owe $55k on the property. Clearly owning has worked out well for me! Now, I'm not against owning, obviously, as I will be doing again. Just doesn't work out for everyone.
  
  
  
  Except, you called me out. Who was spewing the fact that you were indeed wrong. Yes, I realize I'm in a very small minority, but it does certainly happen.

  It sounds like you lucked out by being in a personal relationship with the owner. In all other cases people are renting to make money.
  
  Ps. I told you not to buy in SE Massillon.
  
  Also... Prices are up to 2004 levels if not more. Unless you're in a shit neighborhood.
• Pick6

  

  OSH;1639292 wrote:There are websites out there that help with the decision on "rent v. own."
  
  There are all kinds of variables that play out in the decision, and the websites help. I like them. Are they 100% accurate? Probably not, but they can help give a general idea. In our case, we plan on staying at least 5 years, so we'd be better off buying a house unless we can find a place to rent for $444 per month or below. That is definitely not really a possibility where we live.
  
  I'm real good friends with a banker, and he definitely encouraged us to buy the house we ended up buying. He believes that we'll definitely make out better in the end due to the value of the house and it's resale chances being in our favor.

  yeah I've done a lot of research on renting vs buying recently because I was entertaining buying this year. I forget where it was, but I believe it said the average break even point on owning a home is like 2.5 years. Now is a great time to buy.
• Sonofanump

  I plan on living in my house until I'm 93, so I'll live a few years rent free.
• OSH

  

  Pick6;1639297 wrote:yeah I've done a lot of research on renting vs buying recently because I was entertaining buying this year. I forget where it was, but I believe it said the average break even point on owning a home is like 2.5 years. Now is a great time to buy.

  Yeah, depending on where you live...that could be true. In some areas, it can be much higher. I don't know how "accurate" it is, but Zillow has offered studies and findings on some of this based on locations.
• slingshot4ever

  Own house. Been in it for 4 years. Paying a little extra each month to have it paid off in 18 years instead of 30.
• GoChiefs

  

  ZWICK 4 PREZ;1639295 wrote:Ps. I told you not to buy in SE Massillon.

  Lol. No, you didn't.
• ZWICK 4 PREZ

  

  GoChiefs;1639308 wrote:Lol. No, you didn't.

  Or maybe you told me you lived there and I asked wtf would you live there lol
• GoChiefs

  

  ZWICK 4 PREZ;1639314 wrote:Or maybe you told me you lived there and I asked wtf would you live there lol

  Correct. Lol. My area wasn't bad. Never really had any problems there.
• Belly35

  

  ZWICK 4 PREZ;1639295 wrote:It sounds like you lucked out by being in a personal relationship with the owner. In all other cases people are renting to make money.
  
  Ps. I told you not to buy in SE Massillon.
  
  Also... Prices are up to 2004 levels if not more. Unless you're in a shit neighborhood.

  as a owner of four house and never lost money on them I have learned this lesson: location, location, location and curb appeal.....
• Fab4Runner

  

  HelloAgain;1639056 wrote:Whore

  True.
• Manhattan Buckeye

  "I have learned this lesson: location,"
  
  It is all location. You can build on or make improvements to a house, you can't fix a horrible school district.
• Con_Alma

  ...or realize that your home is an expense as opposed to an investment. If you purchase one without the security of longevity, then you are taking a risk with the assets you have put into your families shelter. I've never understood why so many people don't even bat an eye at that.
• kayo

  believer;1639197 wrote:Provided you survive a 30-year mortgage, you've basically paid rent to the lender with eye-popping interest which can easily total more than the value of the property itself.

  Unless your credit is pathetic or you have a 40-year loan, this isn't close to being true. With today's rates your total interest paid will only be around 75% of the amount borrowed for a 30-year mortgage, and around 26% for a 15-year mortgage.
• rrfan

  

  Commander of Awesome;1639059 wrote:Rent, owning for suckers.
  
  Can move when and if I want to, something breaks I call the landlord, dont pay property tax. Soon as the government stops giving tax right offs for owning a home, which they should immediately, there will be 0 incentive to own a home IMO.
  
  And before you start giving me all the BS about it being cheaper and building equity, that's a farse. By the time you pay property tax, fixing your washer/dryer, etc... you've lost money compared to me.

  You are very misinformed! You are paying property tax it is just in the form of rent. The "landlord" is not losing money on the deal...believe me.
• thavoice

  Home owner.
  
  I enjoy it much better than renting. Yeah, it can get tedious at times with all the yardwork and shit, but in the end it is worth it and I enjoy all the little do it yourself projects that always lead to something else. Recently worked on my asphalt driveway and sealed it and paver bricks around it. As soon as the grass starts to grow back in it will look very sharp.
• like_that

  

  This link could be helpful for this debate.
  
  http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0
• Commander of Awesome

  

  like_that;1640600 wrote:This link could be helpful for this debate.
  
  http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0

  Just used this. Said if I could rent a home for under $3k then renting is better. Brought teh lulz
• thavoice

  Times like now I like being a homeowner. Having a bunch of people over this weekend for our local festival and some parties and makes all the little projects I did over the summer worth it. Even mowing can be a chore but I take pride in having a nice lawn and even made something to pull behind the mower to get those coool looking lines in it!
  Yeah, I am a geek! But as I sat on the back deck, having a beer, listening to the movie playing at the local park, I just sat back and relaxed and thougt all the hard work was worth it!
• Pick6

  

  thavoice;1640623 wrote:Times like now I like being a homeowner. Having a bunch of people over this weekend for our local festival and some parties and makes all the little projects I did over the summer worth it. Even mowing can be a chore but I take pride in having a nice lawn and even made something to pull behind the mower to get those coool looking lines in it!
  Yeah, I am a geek! But as I sat on the back deck, having a beer, listening to the movie playing at the local park, I just sat back and relaxed and thougt all the hard work was worth it!

  sound like the life. excluding the bitch wife.
• believer

  

  kayo;1639560 wrote:Unless your credit is pathetic or you have a 40-year loan, this isn't close to being true. With today's rates your total interest paid will only be around 75% of the amount borrowed for a 30-year mortgage, and around 26% for a 15-year mortgage.

  Soooooooo on a 30-year mortgage at - say - $175,000 that means you pay $131,000 in interest or $45,500 in interest if you can afford the monthly payments for a 15-year mortgage. Either way it's still a shit load of pissed away money. No different than renting I guess. :RpS_blink:
  
  So you're paying rent to the bank in the hopes that the property - once you "own" it outright - at least retains it's value adjusted for inflation or appreciates a little. Plus let's hope you have additional cash available for upkeep over the years. Did I forget to mention property taxes and insurance which never go away (and always increase) and those pesky HOA fees? All of that financial fun so you can sell it after 30 years because you're generally too tired by then to maintain and enjoy it.
  
  But - hey - you can paint that fucker any color you want as long as the HOA approves it!