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House-rent or buy?

Discussion in 'Off Topic [BG]' started by deadweeds, Feb 2, 2003.

  1. Rent

    2 vote(s)
  2. Own

    36 vote(s)
  3. ...still with the folks

    6 vote(s)
  4. Can they make a house out of carrots?

    0 vote(s)
  1. deadweeds


    Oct 28, 2002
    Harbor Beach,MI
    Ok everyone....I have a dilemma of sorts....I'm an average 20 year old guy...I have a full time job making decent money etc etc......as of right now I'm living with my parents and I have started to save money for a house...I've realized that saving money for a house will take a long time....and the more and more I think about it I want to get out and on my own asap....so there's always the option of renting an apartment or house as well....but then of course there's always the problem of something going wrong and having to move somewhere else in the future....and some restrictions of living in a rented place(noise,no pets etc.)....so basically I'm just wondering who all here rents or owns a house...and what would you do in this situation...thanks


    TWISTED Guest

    Sep 8, 2002
    Perth, Australia
    I think you should get a loan for a house if you can afford it. Even if you lose your job or something you can go live at your parents house and rent your place out to someone else.
  3. Ívar Þórólfsson

    Ívar Þórólfsson Mmmmmm... Supporting Member

    Apr 9, 2001
    Kopavogur, Iceland
    Well, I don´t own a house, but I own an apartment.

    At least here in Iceland it´s cheaper to own an apartment then to rent it. The rent here is pretty steep so it´s better to put down an downpayment and get the rest on loans. At least that way you own something, and your getting more and more with each payment. Rent is just another way of flushing the money down the toilet IMHO.
  4. P. Aaron

    P. Aaron Supporting Member

    Often cheaper, if in rock band, can crank volume!

    Or , if you have rehearsal space elsewhere, best location, best possible price.

    Try to get a basement.
  5. 72beetle


    Jun 10, 2001
    Phoenix, Arizona
    I just bought my first house - the deal closes the 19th and we take possession on the 21st. I can tell you in all honesty, I have had more trouble getting my cable transferred from one apartment to another than I did scoring these digs. It's nowhere near as difficult as you may think.

    Renting has advantages - the biggest being a lack of responsibility for your repairs and most bills. If something breaks, the landlord fixes it. Most apartments have at least SOME of the basic utilities covered in the rent. While you are technically throwing money away by renting, it's not a total loss, it makes the process of living easier.

    However, if you can deal with fixing your own roof or replacing the hot water heater when it blows up because the kids filled it with oatmeal, you really should buy. All you need is decent credit and you can get loans for up to 107% of the house's selling price - the extra money (that 7%) goes to cover almost all of the costs associated with buying the house - taxes, fees, etc etc, so you have virtually no out-of-pocket costs. In our case, we had to put up 1000 dollars for 'earnest money', which we get back at closing, and we had to pay about 300 dollars out of pocket for the home inspection, but that's it. Our mortgage payment will come out to less than our current rent by a couple hundred dollars, but we'll have to pay full utilities at the house, so it pretty much evens out to the same amount of money each month, except now we're building equity instead of paying for the landlord's sports car collection.

    Interest rates are low, the process is easier than expected, actual costs are limited, and you can practice a LOT louder in a house! Go for it!

  6. jondog


    Mar 14, 2002
    NYC metro area
    Buy some land. Then you can grow your own food, just like the man.
  7. secretdonkey


    Oct 9, 2002
    Austin, TX
    Interest rates are really good right now. That's a big incentive to buy now. A house is also a great investment. But - a good rule of thumb is to only buy if you anticipate being there for at least 5 years. At your age, are you really prepared to commit to being in the same place, five years out? I sure wasn't at your age.

    But, if you're in a position to make this kind of decision, you are also obviously far more mature than I was at your age. :)
  8. jazzbo


    Aug 25, 2000
    San Francisco, CA
    We should just do things like we did a hundred years ago and prior. When you want something, seize it! If you have the physical strength and strategic skills, it should rightfully be yours!

  9. temp5897

    temp5897 Guest

    I like Jazzbo's idea. :)

    But since you probably don't want to live in jail I would say either save at home or buy. If it is possible I would say invest in something if you really want to move out. How long are you talking before you can afford to leave? Even if you can't afford an actual house you might be able to get a condo or townhome or something...of course where I live those are terribly expensive as well (San Diego is ridiculous). Basically find something you can put equity in. It's like your just saving your money instead of giving it to someone else who is responsible for your residence. I dunno I just really don't like the idea of renting. It's better to be smart with your money if at all possible...

    I don't really need to discuss the other pro's and con's everyone else already did that really...
  10. hogani


    Jul 3, 2000
    Austin, TX
    The money you save at your age is "high powered money". This money will appreciate more than the dollars you save 10 years from now. This money you put in stocks/real estate, etc., now will be worth a mint when you retire.

    If you can save a bunch of money, avoid rent, or help out your parents, definitely do it.
  11. Stu L.

    Stu L.

    Nov 27, 2001
    Corsicana, Texas
    I own land. I also owe a bank for my house. :)

    Hey Deadweeds, I'm just 21, and had my house long before my 21st B-day. Bought the land at 19 (it's paid for) HOWEVER! I have also been married over 2 years. I seem to like commitment :D . It's great to own. Shop around if you can. We were patient when we bought, and saved a ton. We bought a house that needed some work (modernizing) and have got more value than I put in at this point.

    Hey, it's your money, do what you want. If you want to buy, do it. I hope to never have to rent again though. That sucked.
  12. Still living with my parents.. i've been waiting for 4 years to get my own place now.. I've been passed by 3 times already, because some refugee's " needed " a place. and still the government wonders why right-wing is so polular.. oh the sweet 'n bitter irony.
  13. Well, recently when my marriage broke down, I returned to my folks (gah, 30 something living with his folks......). But technically (as I'm still paying the mortgage) I own my own home.

    I have given the options much consideration in the past, and my own opinion is that I would never rent. My feelings are that every payment I make should be going towards my future, not someone elses (yeah, I know, the mortgage lenders make about 3 times the original loan amount out of ya - you knoiw what I mean). I don't really want to pay someones else's mortgage!

    However, I do understand why people rent (my brother and his wife have been renting for a few years now!). I just feel that it's not or me!
  14. pmkelly

    pmkelly Supporting Member

    Nov 28, 2000
    Kansas City, MO
    there is no feeling like owning your own home...

  15. Jennifer


    Jul 31, 2000
    Erie, Illinois
    Everything my husband and I own (1 house that we live in plus 10 acres, and 3 rental houses), we bought on contract. That's the way to go, if you want to avoid all the excess charges. It's a buyers market right now, and contract deals are pretty easy to find, even if the seller doesn't think they'll sell that way. Especially if you do your research and offer at least 3 different options to the seller. And NEVER let the realator make your offer for you, do it in person.
  16. trinket


    Nov 25, 2001
    office chair
    Own, and everytime we see the yearly statements of what actually goes towards our principal, I want to vomit. [​IMG]
    Thieves. [​IMG]
    I really had no idea how awful it all adds up to be when you see how the interest compounds. (gag)
    Makes me miss my mum. :D

    However paying through the nose for a house you will eventually own is much better than wiping your arse with rent money (IMHO)
    Considering how low interest rates are now, buying would not be a bad way to go at all!
    Good luck!
  17. Josh - that is smart money. Good move.

    BTW - some people advise home buyers to "Get the most expensive house you can afford!!!" Believe me, don't do this!!!

    Read Josh's post, and when house shopping (looking at what you can finance) leave some extra dough for padding the principal, and 'fun money'. Owning a home is no fun if your mortgage eats your income and leaves NO play money. Believe me.
  18. Yogi Bear

    Yogi Bear Supporting Member

    Aug 14, 2000
    Buy if you can, get a condo, townhome, whatever. Start building that equity. Real estate is a great investment, and remember the three L's of real estate..... Location, location, location. It's better to be a shack among mansions than a mansion among shacks.
  19. rickbass

    rickbass Supporting Member

    Don't rent or buy.

    Spend it on your ride.

    As an E. St. Louis pimp I used to know, Five Dollar Al, told me - "You can sleep in your car, but you can't drive your house."


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