[dtube] Why I'm Renting Instead of Buying a House | Renting VS Buying Discussion

in life •  7 years ago  (edited)


My first video in the new apartment! Thought it would be a great time to discuss why I've made the decision to rent instead of getting a mortgage on a house. Let me know what you think!

DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.


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It's actually depend on your financial situation though, if you can afford it, then that's a good investment for long term, but if you can't afford it better rent it. Correct my analogy if i'm wrong, " Delegated power is better than powering up" .

depends on why your on steem. For me its better to power up so that i have more influence and my upvotes worth more making more people attracted to my page.

Can you power up above the 5 they say to leave in.

@louisthomas @cortexx Hello where did you get this information ... we all are here temporary ..... so renting is best option ... so many option to live nad explore life .... i dont want to be at just one place all the time .... life is beautiful ..so best is renting

Sometimes its not about investing, returns or growth.

Its a sense of belonging and that is what a home is. The smell, sounds and feeling stays with you forever.

my saying is "own digital property, rent physical property.

you are a smart man

  ·  7 years ago (edited)

I don't agree with the people saying renting is better than actually owning a house.
Rent will eventually cost you as much as purchasing a house would.
If you're renting a house for 1k$ a month, and you can purchase a house for 300k$ for example, it's stupid to rent it.

I know people that could buy a hose with their own money + some loan from the bank, and they preferred to rent a house. one of them spent more money on rent than the cost of purchasing a house in 10 years.

If he did purchase a house and did not rent, he would've house right now. but instead, he has nothing.

I don't understand people that can afford to purchase a house but preferring to rent one instead. It's really stupid.

I didn't watch your video because I can't as of right now. but I wanted to comment my thoughts regarding this.
upvoted for visibility and discussion.

I know people who prefer to rent for their mental health. Sometimes owning can be stressful. If something breaks, the repair is coming out of your own wallet. You also worry a lot more about the maintenance of the home when you are owning compared to renting. I personally own and see it as a better finance decision but have dealt with people who prefer not to have the responsibilities and I respect that.

I agree! Too much responsibility and risk involved with buying a house.

Wish I bought at 24. The cost of carry on renting is too high for me.... you can do the math a 1,000 ways and buying always ends up ahead in the long run, and usually in the medium and sometimes in the short terms.

Mortgage literally translated means Death Pledge!

death-pledge1.jpg

Unless you are sure you are going to stay put, and that area has a good economic foundation that will be solid for a long time (which is very hard to gauge) DO NOT BUY! Ownership is more of a pain than anything with constant maintenance etc., and yes, societies have been brainwashed by the banking system into taking out mortgages and locking them down into an area, pay twice the amount in the long run and so on. Your reasons are sound; stick to them.

i have always prefered to buy as long as i could get a low intrest rate and a short term. my current loan is a 15 year at 2.75% its not to bad. my old one was a 30 year at 6.125% . if i would have paid it for 30 years i would have paid for the $130,000 house plus around $145000 in intrest. screw that . i just like buying over renting because i can build equity.

This is a brilliant Idea seriously.
in our era It is better to own on digital world that to own on the physical world. you never know when It will be taken away from you,,, and How much taxes are their as well.

Buying is like marriage...You're a winner...in it for the long haul. If you want to upgrade and give your spouse something even better, you can sell and use the equity, and any appreciation in value, towards a better buy.

Renting is like dating...Maybe you'll stay, maybe not...Not good for investing purposes...as you get zero value on return....just a whole lot of memories...good or not so much.

Thanks for this post!

Peace.

Smart :)

As someone that has done Mortgages the last fourteen years and has a lot of experience in helping people in and out of different markets, I would say it 100% depends on your set goals in the short and long. You can buy a primary residence and hold it for 2 years to avoid capital gains and sell it at a profit OR do the homework up front and know the market rental price and turn it into a rental.

Depending on market conditions and how much longer you think a market is going to climb, you can buy another primary home(which is always a cheaper interest rate) every two years or decide to rent and wait the next drop if prices are peaking. Either way Louis a 2 year hold and making money in real estate ON TOP of crypto is also a good play. You just need to know how to play it.. By the way, coming from California.

That's my advice to you buddy. Most Millionaires make their start in Real Estate..

nice

hi bro i faced proble when upload the videos in black chain in d tube ..block chain error is dispaled then what i do bro.

Great post i like it

  ·  7 years ago (edited)

When I first read your title I was like... "NO WAY!" But after hearing your reasons, it makes sense! Depended on your life situation, timing and where you end up wanting to be (and of course, that includes how long you want to stay in a certain location as well), buying a house wins majority of the time I have to say... of course, you have to buy a house that you can actually afford. I would rather be my OWN LANDLORD then paying someone else's mortgage or building their equity instead of mine!

But anyways, I enjoy your video(s) and keep up the good work! :)

obama.jpg

In my area, the mortgage on a 4-bedroom house is roughly half the rent of a single bedroom apartment. Try to factor in the increased cost of travel and you get ... yeah you get a fuckton lower cost of living.

Great post! I Upvoted and followed. Do the same and we can support one another.😚😍

Every time we have a snow storm and need to break out the shovel, I consider renting as superior.

hallo sahabat steemit semua saya pendatang baru disini mohon bantuan untuk mejadi sahabat saya semua

you're right, sometimes you get some things done by others not because you're not buoyant

owning a home is the best feeling ever, you can just do your thing

Congrats!!!!

I live in Sydney and I think it will take forever to afford a house here.. D:

Renting is probably the better option.

I agree completely! Great video, Your new place looks amazing!
I have the same strategy as you, Investing in Crypto in the long term will have a big impact.

whether to buy / rent at times depends on how much money you earn per month or the net income

  ·  7 years ago Reveal Comment

Renting is a great way to save some big bucks expecially if you're the ambitious type who would like to invest in other things too. BTW your apartment is lovely.

Gotta build that equity though! Physical always beats virtual (unless it's fiat)

Warm regards,
please voteback ..
thanx

Sometimes it depends on country and finance has it been in my country it would be better to buy, it's better in the long run, amazing video buddy

Lovely apartment, it is beautiful. Renting where you live and own what you can rent to others that is a very good business idea.
I won't advice you to buy a house because you still have a whole lot of traveling and sailing to do. So buying is a waste.
Mortgage is a very big and scary thing.

in my opinion, everyone should have their own house to live freely and comfortably, decorate his/her house according to his dream

Yeah Mr @louisthomas. I think that buying is for middle-class people who don't understand the dangers of trusting in liabilities. Robert Kiyosaki and Mr Cardone are my heros. They've totally revolutionized my mind. I think you're in the flow homie. You're network will pay for your liabilities gladly. Youre financial literacy is on fleek!!

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at your age it makes sense to rent, you can move it you need to easily; renting does not stop you saving for a future house purchase, for when you will want to settle down and have the security of a permanent home. I bought my first house when I was in my early twenties with a 100% mortgage (yes I was mad) and it was a stuggle at times to get all the bills paid - life can throw you some curve balls!

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Currently living in Australia, I couldn't agree more.
Buying a house in some parts of the world is totally crazy at the moment and like most things, the market will correct and give us a way better opportunity to become a homeowner.

For those interested, this article describes quite well the state of the housing market in Australia, and I'm sure many other cities in the world.
https://medium.com/@matt_11659/matt-barrie-australias-economy-is-a-house-of-cards-6877adb3fb2f

congratulations on your new home.
a happy wish

If you have BTC than buy.Else Rent.

interesting perspective - thanks for the insight

I own because it is cheaper than renting. If you are renting you are paying the owner the same amount to pay their mortgage as well as an amount that gives them profit. If interest rates go up, rent is going to go up too. It is scary to tie yourself to a 20-30 year loan, but you can still sell before that time is complete. Part of the process in selecting my house was finding one that would be easy to resale if needed. I also think its a better investment with your money. Rather than giving someone money for rent, you are paying that amount towards your home. I think of it as a savings account that I can cash out when I sell. I imagine things are different in the states, but we have programs that make it affordable for first time home owners, so they don't have to pay huge amounts for down payments and sometimes nothing at all (FHA and USDA loans). That means I was able to keep my money invested in crypto and stocks.

super interesting!! thanks for sharing

Renting can be way better. I spend 12000 a year on rent. Now 12k ×30years is 360k. Cheaper then a house

No matter from what angle one may see it... One still needs an apartment to call "my own"

I understand where he is coming from. I am in the same boat. I don't have any responsibilities right now like "Kids, Car Payments, Loans, Debts," { Except my Girlfriend that could be considered as debt}.

I like to live like a nomad and move where I like when I like.
I think this might all change in the future when the responsibilities start knocking.

wow got to know many things
but it depends on financial condition

  ·  7 years ago (edited)

But keep in mind that If you live in an area where real estate values increase substantially over time, then if you rent for a long period then you will HAVE to rent forever because you will never be able to afford a decent house, you will be priced out. Say you are renting in LA for 25 yrs, then decide to buy, can you afford $3 million dollars for an average house? And that's not a nice house in a nice neighborhood, not even close.

Un hache ahí mano!

You make some great points here for renting. Coming from someone who lives in the U.S. currently (And also 24 years old), I think renting is going to become much more of the norm going forward, especially with people in their 30s-40s more established in life. Outside of the reasons you listed, with the new US tax laws in effect for 2018 now, there is a $10,000 cap on the total state tax deduction an individual can take on their Federal tax return meaning most people who have wage withholding around that amount will no longer receive any deduction for the real estate taxes they pay for their homes. The mortgage interest deduction is also now capped as well for any new mortgage over $750,000. These two changes alone will disincentivize a lot of people looking to buy a home, now knowing that they may receive a lot less or potentially no benefit for the larger costs of owning that home.

Owning all the way.

First, paying rent doesn't get you any closer to owning the house. You don't have to worry about interest rates, but instead of interest you are paying someone for the right to use their rented asset, which likely means they are making profit off of you.

You might see the eventual hiccups and repairs that come with owning a house as a downside, but you'll run into them when renting, too. You don't have to lift a finger, that's true, but the ease of living comes with a cost, as the owner has to generate the money needed for repairs from somewhere: the rent.

The flipside of owning is of course the eventual maintenance that every house needs. It all comes down to smart financial decisions and not spreading yourself too thin by getting too large a loan and not being able to save up a nest egg of both money and skill & knowledge of your house in the case something unfortunate happens. However, sometimes newly acquired houses can have hidden problems such as structural problems, water damage etc. That is the main risk with owning, but barring sheer bad luck, can be largely mitigated by careful research before buying a house.

Also, I like the true freedom owning gives me: with eventual problems and maintenance, it is up to me to face and conquer them, or suffer the consequences. It can be harsh at times, but I think it can teach you valuable lessons about responsibility and the power you can have with your hands and mind. Did I mention this, the best part, is completely free?

My area has rent control I'm locked in at under 1000 per month while rents rise the same unit is being advertised at 1250 now. I might as well stay and save.

I'm moving to Los Angeles and looking at renting instead of buying. The logic is (validated by some folks I know that currently live there), is that given the disparity between mortgage and rent... your capital which comprises this gap is better served in financial vehicles. Consensus seems to be that home values will drop there 20% over the next year. Wait, buy, maybe.

Congrats on the new apartment. I rented for years and got so sick of it, it gets old fast...I can't stand being tied to some contract for a year then they boost the price up instead of rewarding you with lower rent if you were a good tenant. Which makes you look for a new location anyways. You want to get motivated to buy a house...start paying rent in cash every month and watch that money fall right out of your hand...it motivated me!!! haha.

great!!.This is a brilliant Idea seriously.

I'm new ... and taking notes from the best. god bless u !

pd: ☕

In holland its mostly way better to buy instead of renting. Although alot of people rent homes here. But here's an example why i think its stupid. I pay 550 euro's each month on morgage. And renting the same house would cost me 650 euro's rent each month.

Securing your retirement should be the top priority. Buying a house is most often than not a bad investment. Thanks for your content.

yea, theres pros and con for each.
for me, ill rather own. Because if im renting, the home isnt mine and throwing away money to someone else.
see in colorado, mainly in the Denver metro front range area along with other dozen of cities surrounding it, rent for a 2 bed apartment is 1300... in a so so decent neighborhood. My friend is also paying 1800 for a 2 bed house...in a crappy neighborhood.
me? 1200 in mortgage mainly due to the good lump in downpay. the way i see it is, why throw money to someone that wont be yours when you can throw money to someone or place that will be yours in 15-30 years.

As far as opportunity costs, there are alternative investment opportunities like tax-advantaged retirement funds, stocks, and crypto. But don't forget about the impact buying a house has on your mobility. If you got a great job offer in another city, would you not take it because you had a ball-and-chain mortgage somewhere else?

  ·  7 years ago 

You are smart. I am renting too.