QUESTION: Would you rather own a home you can barely afford or rent comfortably forever?
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© Copyright 2007 – 2025 Claycord News & Talk
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QUESTION: Would you rather own a home you can barely afford or rent comfortably forever?
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Subscribe to our newsletter!
© Copyright 2007 – 2025 Claycord News & Talk
Own …. even as I rented before I was always thinking the rent $$ doesn’t buy me anything – couldn’t wait to buy
My neighbour across the street said she had paid so much in rent for so many years, that she could have bought the house.
Rent leaves you nothing to show for it. With ownership, you build up equity over the years, even if it’s difficult at first.
Own….are people stupid? flush money or bank it? no brainier.
We couldn’t wait to buy either. We bought at an early age, and we did it all on our own. The way the question is phrased, I’d rather rent comfortably. Otherwise, if you can barely afford it, you can easily foreclose. Homes foreclose on those who can afford a home (job loss, divorce, etc.) yet alone those who can barely afford it. And then there’s property taxes. The operative word is “comfortable.” There’s a reason the bank wants to know where the down payment is coming from, and how long it’s been in an account in your name. Buyer beware…
It’s not an either/or decision, as it depends on several factors, such as your age and future income projection. We were young when we purchased our home and it was a stretch financially, but now we can easily afford it. Owning is better, because your home becomes an asset, rather than just an expenditure.
Of course owning is better but it’s not always an asset. A friend in Orinda recently sold their home for $1.3 million less than what they paid. Property values are down, and they chose to return to where she grew up to take care of her elderly parents. They didn’t want to rent it out and they’re willing to take the loss. Any investment is a gamble, and it doesn’t always turn out in your favor. We’ve never “lost out” in equity but it happens to homeowners all the time. It could happen to any of us.
Absolutely NEVER buy a home you can barely afford ! ! !
If one person becomes unemployed ? ? ?
.
Firstly, gain a skill set employers are willing to pay up for.
Minimum wage was never meant to be anything but a starting
place to gain skills, enabling you to get a better paying job,
and REPEAT.
Build savings, Fund retirement. Then consider buying a
“barely enough” house and if possible make additional principle
payments. Each month, doing so reduces length of loan allowing
equity to be built up faster, plus reducing total number of house
payments. Coworker brought in a DOS program that calculated
costs of home loan. Played around with it and started plugging
in extra principle payments, convinced to pay off first house early.
Search web and when you find one that allows extra payments
play around with extra payments versus length of loan.
.
Before considering purchase of a house meet with at least four fee
based financial planners to get unbiased evaluation of your goals.
.
Renting, some have to do it. That said, what happens when you retire ? ? ?
Considering a political party imported massive numbers of renters,
likelihood of rents going down is remote.
.
Then there is inflation, what did a postage stamp cost ten years ago ?
How about milk or bread ?
.
When it comes time you need assistance in old age or you want to
pass something onto your children equity in a paid off house is an
investment that keeps on growing.
.
Now you might ask “how can I build savings” ?
Get a pocket sized spiral note book, put mechanical pencil in spiral.
For a week write down what you spend your money on, buying coffee,
fast food, fuel, groceries . . . . . At end of the week look at your list,
what could you cut out or reduce ?
.
Had a coworker who came in with an expensive bought coffee.
Asked what it cost, asked average number per day.
Number per day times seven, what’s the cost?
Multiply that by four = cost per month,
multiply by twelve = cost per year,
Then came realization it was costing him, it was big bucks. . . .
.
Still prefer that green folding stuff you can put in your pocket.
Controls impulse buying.
.
Younger generation has been conditioned not to use cash,
because few keep a running total of outgoing cash in their brain.
.
Means huge profits for credit card companies, which is how
they planned it. High balances + high interest = huge profits.
Once paid down, pay off credit card every month.
You don’t need ten cards ! ! !
.
Get spending under control, will allow you to have savings.
OK, enough outta me . . . . . . Hope I’ve helped some . . . . .
Owning a home changes your outlook. There is greater incentive to maintain and improve your property. There is greater incentive to know your neighbors and get along with them. You’re building roots and a future in the community.
On the other hand, renters relocate every two or three years. Landlords save money by deferring maintenance. Conflicts often emerge from the arrangement.
Would restricting banks and foreign investors make homes more affordable for citizens? I don’t know but I’m willing to try.
there’s no logic in your question. House payments go down over time and rent does nothing but go up. Buying a house is the way smarter decision. I recently sold my house…..the payment was $650 a month.
Who came up with this Stupid Question? Rent will go up, for Homeowners only your Property taxes go up, and by a small percentage(thank you Howard Jarvis) eventually it is reverses, and rent is higher! Even with taxes included I cannot rent a house for half of what I am paying.