Author Topic: Renting Vs. Buying  (Read 5692 times)

Offline mercaz1

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Re: Renting Vs. Buying
« Reply #20 on: February 11, 2014, 07:37:24 PM »
Your money might get a better return but how many people actually invest the difference and don't spend it

Offline Ergel

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Re: Renting Vs. Buying
« Reply #21 on: February 11, 2014, 07:40:13 PM »
Exactly
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Offline CS1

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Re: Renting Vs. Buying
« Reply #22 on: February 11, 2014, 07:59:02 PM »
Salaries have not been going up with inflation in years
even if salary stays the same, the rents will definitely increase every year or two,
while mortgage will remain generally the same - a slight annual increase if property taxes rise.
(Landlord would pass those onto you, as well..)

After one is married for 5-8 years may be a good time, depending on the city.
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Offline cozmohoot

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Re: Renting Vs. Buying
« Reply #23 on: February 11, 2014, 08:02:50 PM »
Pro of owning is the refund you can get for paying mortgage interest

Offline Sport

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Re: Renting Vs. Buying
« Reply #24 on: February 11, 2014, 08:10:52 PM »

Your money might get a better return but how many people actually invest the difference and don't spend it
True.

Offline ayman

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Re: Renting Vs. Buying
« Reply #25 on: February 11, 2014, 08:11:51 PM »
Proof?
Chart here doesn't really seem to say that
http://en.m.wikipedia.org/wiki/Real_wage
Wiki is hardly a proof...
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Offline CS1

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Re: Renting Vs. Buying
« Reply #26 on: February 11, 2014, 08:13:16 PM »
Wiki is hardly a proof...
+1
yes, especially in the frum (or teacher's) world
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Offline daganster

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Re: Renting Vs. Buying
« Reply #27 on: February 11, 2014, 08:17:53 PM »
Rent vs buy depends on many factors especially the location. There are places in this country that your monthly rental payment is double what you would pay for mortgage/taxes/insurance/water/sewer etc in a place like that it's obviously a no brainer, but in a place like Brooklyn you really need to see if it works for you because regardless if it pays to buy or not you may not be able to keep up with the monthly payments, and the rent may be less than what you would pay if you owned it. I've seen people in brooklyn moving from a 3bd to a 1bd because they couldn't afford it. What would they do if they were locked into a mortgage? Just my two cents.

Offline CS1

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Re: Renting Vs. Buying
« Reply #28 on: February 11, 2014, 08:21:52 PM »
Rent vs buy depends on many factors especially the location. There are places in this country that your monthly rental payment is double what you would pay for mortgage/taxes/insurance/water/sewer etc in a place like that it's obviously a no brainer, but in a place like Brooklyn you really need to see if it works for you because regardless if it pays to buy or not you may not be able to keep up with the monthly payments, and the rent may be less than what you would pay if you owned it. I've seen people in brooklyn moving from a 3bd to a 1bd because they couldn't afford it. What would they do if they were locked into a mortgage? Just my two cents.
+1
I agree that in brooklyn it's not really affordable to own, especially if not sure of long term living there..

However, the example of moving due to not affording rent on the 3bd may not be accurate
if their mortgage would have been half the monthly payments, perhaps. So, even if someone lost a job,
perhaps the $1,000 per month mortgage may have been affordable but not the $2,000/mo rent...

(those numbers may only apply once owned for 10+ years. For new homeowners, a bigger challenge if no cash for an $80+K downpayment.)

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Offline Ergel

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Re: Renting Vs. Buying
« Reply #29 on: February 11, 2014, 08:32:41 PM »
+1
yes, especially in the frum (or teacher's) world
So you mean income vs. Expenses in the frum world. That's definitely true. Income vs. Inflation that's a different story
http://peakwatch.typepad.com/.a/6a00d83452403c69e2017ee762033f970d-pi
Based on this chart you are correct since the depression. Is that what you many by a long time?
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Offline daganster

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Re: Renting Vs. Buying
« Reply #30 on: February 11, 2014, 08:42:35 PM »
+1
I agree that in brooklyn it's not really affordable to own, especially if not sure of long term living there..

However, the example of moving due to not affording rent on the 3bd may not be accurate
if their mortgage would have been half the monthly payments, perhaps. So, even if someone lost a job,
perhaps the $1,000 per month mortgage may have been affordable but not the $2,000/mo rent...

(those numbers may only apply once owned for 10+ years. For new homeowners, a bigger challenge if no cash for an $80+K downpayment.)


The example I gave is from Brooklyn. Say a 3bd goes for $3k a month and you can't afford it and move into a 1bd for $1500. In a place where you can buy a house and your monthly payments are $900 a month regardless how bad your financial situation is you're gonna need to cough up the money because the least you can downgrade to is a 1bd for $700, and you saved $800 a month all that time that you owned it because if you were to rent from the get go it would have cost you $1700.

Offline cozmohoot

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Re: Renting Vs. Buying
« Reply #31 on: February 11, 2014, 09:20:24 PM »
Brooklyn has many different prices of homes. If you buy a 3br for under 500 and you have a mortgage of 2k that's less than rent of a 2bdrm apt.

Offline MoGro17

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Re: Renting Vs. Buying
« Reply #32 on: February 12, 2014, 04:44:32 PM »
to me, its not even a question.
If you have the ability to squeeze out the down payment and you know that you can make the mortgage payments, then you're much better off buying a house.
(in many cases, rent and mortgage is similar $ so the DP is the big issue.)

Offline Sport

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Re: Renting Vs. Buying
« Reply #33 on: February 12, 2014, 07:49:06 PM »

to me, its not even a question.
If you have the ability to squeeze out the down payment and you know that you can make the mortgage payments, then you're much better off buying a house.
(in many cases, rent and mortgage is similar $ so the DP is the big issue.)
Why do you think your much better off buying? ( Not that I think the opposite, I just like to hear people's opinion on this)   

Offline daganster

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Re: Renting Vs. Buying
« Reply #34 on: February 12, 2014, 07:52:05 PM »
to me, its not even a question.
If you have the ability to squeeze out the down payment and you know that you can make the mortgage payments, then you're much better off buying a house.
(in many cases, rent and mortgage is similar $ so the DP is the big issue.)
It depends.  Everyone thinks that they must buy a home you have people that put down hefty down payments renovate etc, and unfortunately some have their home repossessed by the banks. In general I'm all for buying, but it needs to make sense you can't just buy because it's a must and then deal with the consequences.

Offline daganster

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Re: Renting Vs. Buying
« Reply #35 on: February 12, 2014, 07:53:47 PM »
Why do you think your much better off buying? ( Not that I think the opposite, I just like to hear people's opinion on this)   
There are many advantages as a general rule I think that most people would agree that owning is better than renting.

Offline mercaz1

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Re: Renting Vs. Buying
« Reply #36 on: February 12, 2014, 07:59:01 PM »
also when you own a house if you can afford the mortgage payments then no one is kicking you out
you can rent for 10 years and then your lease is not renewed and your out on the street

Offline Sport

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Re: Renting Vs. Buying
« Reply #37 on: February 12, 2014, 08:10:51 PM »

also when you own a house if you can afford the mortgage payments then no one is kicking you out
you can rent for 10 years and then your lease is not renewed and your out on the street
This and the fact that after 30yrs you're done paying for housing (other then taxes and home improvement) are the most compelling arguments to me.

Offline CS1

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Re: Renting Vs. Buying
« Reply #38 on: February 12, 2014, 08:14:00 PM »
This and the fact that after 30yrs you're done paying for housing (other then taxes and home improvement) are the most compelling arguments to me.
+1
true, however repairs and upkeep costs can add up.. depending on quality, standards, etc...
Still worth it, but these are some of the costs involved in being a homeowner.
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Offline Sport

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Re: Renting Vs. Buying
« Reply #39 on: February 12, 2014, 08:18:10 PM »
I would also add that when you own a house your have some leverage against inflation. Aside from what was mentioned up thread about your mortgage payments not increasing while rent will. You also own something that has intrinsic value. (Like owning gold)