whomper Posted July 15, 2009 Share Posted July 15, 2009 I dont want to Hijack Wolfs celebratory thread . Renting vs owning a home. Pros /Cons ? Thoughts ? Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted July 15, 2009 Share Posted July 15, 2009 Renting is perfectly sensible if you want to be nationwide mobile for work or any other reason. Buying makes much more sense if you're putting down roots. Buying is way cheaper, typically. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted July 15, 2009 Share Posted July 15, 2009 I dont want to Hijack Wolfs celebratory thread . Renting vs owning a home. Pros /Cons ? Thoughts ? there are great things with owning and there are great things with renting. i just dont understand why people think that owning is so much better. you need to live someplace and you have to pay for it either way. Quote Link to comment Share on other sites More sharing options...
Marauders11 Posted July 15, 2009 Share Posted July 15, 2009 I moved from a tiny 2 bedroom house that we were crammed in for 8 years into a 4 bedroom single in October. We are renting. The main reason- we weren't able to get a mortgage loan because we have some other credit issues we have to get cleared first- and yes it's a great time to be buying if you are a first time home owner (which we are not), and if you have "stellar" credit, which we do not. It's pretty hard for a regular family with less than perfect credit to get a loan these days. So for us it was a no brainer- it helps that the owner is a friend of mine who was trying to sell the house for almost 2 years at the worst possible time, and wasn't able to move it. He wasn't looking to rent, but offered it to us because he knew us, wasn't worried that we'd trash the place, etc. it was a win-win situation. We also don't act like typical renters in that I take care of all of the minor home repairs and maintenance, and we don't bother him at all. I see the guy once a month when I drop the check off and I never call and bother him. Other advantages that I've seen are that we are getting the place for about the same price as a reasonable mortgage would be, BUT we aren't paying the taxes, which if I decide to buy will tack on about another $400 per month to my current payment amount. Also he takes care of any major repairs- he replaced the hot water heater and had the furnace serviced when both went kaput shortly after I moved in. Disadvantage is obviously that I'm not building equity, but I'm just trying to get from here to there for now, and moving into this house was really the best thing we ever did for our family so far. Quote Link to comment Share on other sites More sharing options...
whomper Posted July 15, 2009 Author Share Posted July 15, 2009 Like I said there are certainly advantages both ways. Owning has the advantage , in some cases, of equity when you resell and the tax advantages that come with owning. Renting you dont have to come up with a downpayment and property maintenace (shoveling, mowing etc) is usually handled for you. There are many other points both ways but I have to head out for a few Quote Link to comment Share on other sites More sharing options...
Kid Cid Posted July 15, 2009 Share Posted July 15, 2009 I am currently proud to be a home owner. Yes I build equity, but it mostly stems from the fact that it is mine and I can do what I want with the place (within reason although there is no HOA thankfully). I take pride in the appearance of my place and I actually enjoy the maintenance and landscaping duties than come with the house. However, at some point that is all going to change. At that time I may not enter right into a rental, but I will most certainly opt for a condo/townhome type deal where I won't have to deal with the maintenance duties. But as certainly as the sun rises and sets, renting will eventually become a bigger benefit to me than owning currently is. Quote Link to comment Share on other sites More sharing options...
Tford Posted July 15, 2009 Share Posted July 15, 2009 (edited) In Canada, you cannot write off your mortgage payments*. You will see many more lifetime renters up north. Just a point of discussion. Edit: * - Unless you have a home-based business Edited July 15, 2009 by Tford Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted July 15, 2009 Share Posted July 15, 2009 In Canada, you cannot write off your mortgage payments*. You will see many more lifetime renters up north. Just a point of discussion. Edit: * - Unless you have a home-based business and there arent 30y mortgages either. Quote Link to comment Share on other sites More sharing options...
Tford Posted July 15, 2009 Share Posted July 15, 2009 (edited) and there arent 30y mortgages either. Not true. I got a 25y mortgage when I bought my house a few years ago. I believe the max is 35y. (Edit: just looked it up. It is 40y in Canada.) Edited July 15, 2009 by Tford Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted July 15, 2009 Share Posted July 15, 2009 Not true. I got a 25y mortgage when I bought my house a few years ago. I believe the max is 35y. (Edit: just looked it up. It is 40y in Canada.) there was something about the canucks that was different.....do the rates reset every few years?? no long term lock up?? Quote Link to comment Share on other sites More sharing options...
westvirginia Posted July 15, 2009 Share Posted July 15, 2009 We've owned before, and will own again. With the last move, it was more convenient to rent (due to some uncertainties). We had every intention of buying this summer, but I just don't think the worst is over yet. We're going to move to a bigger place with the kid coming, but we're still seeing too many people holding out for big money on the houses we want (2-5 acre places). Quote Link to comment Share on other sites More sharing options...
Riffraff Posted July 15, 2009 Share Posted July 15, 2009 Renters have the freedom to pack up and move if they need too (or want to). Owners have to live near the renters that have no vested interest in the upkeep of thier residence. Quote Link to comment Share on other sites More sharing options...
whomper Posted July 15, 2009 Author Share Posted July 15, 2009 Renters have the freedom to pack up and move if they need too (or want to). Owners have to live near the renters that have no vested interest in the upkeep of thier residence. Both true to a point. Renters are usually under a lease so while yes they would have an easier time leaving a residence there is some legal commitment to deal with I dont think the 2nd point happens often enough for it to be a downside of ownership. Owners usually maintain rental properties as far as the lawn / snow etc and owners usually have a security deposit in the event of extreme neglect to the property although the security obviosuly wouldnt cover major damages Quote Link to comment Share on other sites More sharing options...
THE SIX KINGS Posted July 15, 2009 Share Posted July 15, 2009 Have two mortgages. A town home in the city and a cabin in northern Wisconsin. More tax breaks for owning vs renting. Quote Link to comment Share on other sites More sharing options...
Jackass Posted July 15, 2009 Share Posted July 15, 2009 there are great things with owning and there are great things with renting. i just dont understand why people think that owning is so much better. you need to live someplace and you have to pay for it either way. Well, yeah you have to pay for it either way, but at the end of the day, you own something, that over time should be worth a decent chunk of change. But there are a lot of other issues to consider, i.e how long you plan on living in your current area, can you afford a mortgage payment, is your job secure, etc. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted July 15, 2009 Share Posted July 15, 2009 Well, yeah you have to pay for it either way, but at the end of the day, you own something, that over time should be worth a decent chunk of change. But there are a lot of other issues to consider, i.e how long you plan on living in your current area, can you afford a mortgage payment, is your job secure, etc. why should it be worth a decent chunk? things dont always go up as we are now seeing. Quote Link to comment Share on other sites More sharing options...
Jackass Posted July 15, 2009 Share Posted July 15, 2009 why should it be worth a decent chunk? things dont always go up as we are now seeing. It doesn't have to go up for it to be worth something. Let's say you buy a 200k house. In thirty years, you still own the house and even if it doesn't appreciate (which would be rather unlikely over a 30 year period), it's still going to be worth, let's say 200k. Chances are it will be worth more, but even if by some chance it's not, you still own the home. By renting, you own nothing, squat, zilcho. Again, there are plenty of scenario's where renting makes sense. But if you're in it for the long -term, owning is the way to go. Quote Link to comment Share on other sites More sharing options...
jaxfactor Posted July 16, 2009 Share Posted July 16, 2009 Renting you dont have to come up with a downpayment and property maintenace (shoveling, mowing etc) is usually handled for you. Since when do you not have to cut the grass if you rent a home? That's news to me. I could see other maintenance, but not your basic stuff like mowing and shoveling. Quote Link to comment Share on other sites More sharing options...
Puddy Posted July 16, 2009 Share Posted July 16, 2009 Owners have to live near the renters that have no vested interest in the upkeep of thier residence. That's the Riffraff we owners want to avoid Quote Link to comment Share on other sites More sharing options...
Puddy Posted July 16, 2009 Share Posted July 16, 2009 One more thing I'll add. We bought our house 15 f'n years ago. Things were great for 12 or 13 years. The house across the street sold a few months ago for LESS than we paid in 1994. Maybe we should have rented Of course we have had the benefit of deducting interest, etc. for that time frame. Quote Link to comment Share on other sites More sharing options...
cdrudge Posted July 16, 2009 Share Posted July 16, 2009 Since when do you not have to cut the grass if you rent a home? That's news to me. I could see other maintenance, but not your basic stuff like mowing and shoveling.It's going to depend on what you are renting. If it's a house, then the renter still usually mows it. If you are renting an apartment, then the property management company takes care of it. Same goes with snow removal except for maybe a privately controlled area such as a porch or patio. Quote Link to comment Share on other sites More sharing options...
whomper Posted July 16, 2009 Author Share Posted July 16, 2009 Since when do you not have to cut the grass if you rent a home? That's news to me. I could see other maintenance, but not your basic stuff like mowing and shoveling. My brother is renting a house right now and the homeowner has a landscaper that mows the lawn. I was wrong on the snow shoveling though. He does that Quote Link to comment Share on other sites More sharing options...
Jackass Posted July 16, 2009 Share Posted July 16, 2009 One more thing I'll add. We bought our house 15 f'n years ago. Things were great for 12 or 13 years. The house across the street sold a few months ago for LESS than we paid in 1994. Maybe we should have rented So you would rather own nothing? Quote Link to comment Share on other sites More sharing options...
whomper Posted July 16, 2009 Author Share Posted July 16, 2009 One more thing I'll add. We bought our house 15 f'n years ago. Things were great for 12 or 13 years. The house across the street sold a few months ago for LESS than we paid in 1994. Maybe we should have rented Of course we have had the benefit of deducting interest, etc. for that time frame. Right. As well as the equity you have from the downpayment and mortgage payments made over 12-13 years assuming you didnt borrow against it Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted July 16, 2009 Share Posted July 16, 2009 Right. As well as the equity you have from the downpayment and mortgage payments made over 12-13 years assuming you didnt borrow against it And the property taxes....... Quote Link to comment Share on other sites More sharing options...
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