Renting Vs. Buying

[Baruch]

Another benefit of renting is, that you're not as tied to your house, and have more flexibility, and can move more easily.

If you would be able to buy apartments in frum neighborhoods, much more people would own. There is a factor - that you can rent a smaller home (2/3 bedroom apt) which can be cheaper than buying a house.

[Baruch]

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)

I would say that a house has even more intrinsic value than gold.

[CS1]

I would say that a house has even more intrinsic value than gold.

+1
yes, better than gold as it gives you a place to live, so even if you have nothing else, at least you have a home.
One can also rent out a room or two if very desperate.

However, unlike gold, a home needs to be maintained to a certain degree.
It has plumbing, electricity and things that will need to be fixed if broken.
Gold, on the other hand, can just sit there without maintenance... (but it can drop quicker in value than a house can...)

[moko]

This is not true. Many financial experts will tell you that you're better off carrying a mortgage than just buying the house. Between the tax advantages and the low rates on mortgages, you can easily invest the money you would otherwise be putting in the house and come out on top/

ahhh, the old Dave Ramsey vs. Robert Kiyosaki argument / fight.

[MoGro17]

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.

both excellent points.
You don't have to stay in the house for 30 years, though. If you can include a "no penalty for balloon payment" clause in your mortgage, then you can sell the house if you get a great offer, pay off the rest of the principal and have money left over to help buy a different (bigger, better) house! Ta Da!
I know its hard to grasp this now being that the market is kinda down, but there was a time not too long ago that a 350k house would sell for 500k easy! That time will come back as soon as the banks start lending again. In the end, Greed always get em.

Personally, in my situation, it just made sense; I was able to make the down payment and my mortgage is the same as rent would have been for the type of place and location we'd be comfortable in. I got a great rate locked in and the house was relatively new.
I put in a few things like a new kitchen and new A/C system and the value of my house rose by double my renovation cost. Booyah.

[whYME]

I wish I lived somewhere where this would be a practical, not just theoretical discussion for me...

[MoGro17]

I wish I lived somewhere where this would be a practical, not just theoretical discussion for me...

I have two guesses:
Prison or Brooklyn
 

[MoGro17]

OHHHHHH!
I have another!!

Your parents' basement!

+1000

[whYME]

I have two guesses:
Prison or Brooklyn
 

lol

[MoGro17]

lol

Me too 

I crack my self up.
Honestly, I thought the parents basement line was pretty good too.

[whYME]

Honestly, I thought the parents basement line was pretty good too.

Agreed

[Sport]

Or really anywhere in NYC.

[michael]

Surprised no one mentioned shidduchim for your kids. When I was dating, I had friends that refused to go out with girls whose families rented their home. No one will know how much debt a homeowner has, but everyone knows if you rent.

[sky121]

Surprised no one mentioned shidduchim for your kids. When I was dating, I had friends that refused to go out with girls whose families rented their home. No one will know how much debt a homeowner has, but everyone knows if you rent.

Oh gosh. 

[CS1]

Surprised no one mentioned shidduchim for your kids. When I was dating, I had friends that refused to go out with girls whose families rented their home. No one will know how much debt a homeowner has, but everyone knows if you rent.

true point -- Never thought of that as something to affect a shidduch... would depend on the area that the parents are in.

Certain cities it's more understood as a not-really-much-of-a-choice to rent and wouldn't be a 'shidduch issue' (LA, for example -- it's possibly $4,500/mo to rent and $1.8 million to buy a home with $350,000 down payment needed versus other OOT:
Detroit, Cleveland, Pittsburgh, NMBeach, Philly, where a 4 br home can be under $2K/mo in mortgage including taxes! ...it's easier to buy.)

So - it's another city/"depends on location" thing -- as well as the benefit that you mentioned,
you can easily take out a home equity loan of $50K after a few years of home ownership, if needed...

[yehuda S]

Surprised no one mentioned shidduchim for your kids. When I was dating, I had friends that refused to go out with girls whose families rented their home. No one will know how much debt a homeowner has, but everyone knows if you rent.

Ridiculous