Do you rent or own?

[DeletedUser394]

I've determined I can't handle roommates for much longer. Because I can't/don't want to pay $1,400/month to live in a basement, I've concluded that I have to move to another city with more affordable housing.

Just curious if you guys/galls rent or own (with mortgage still counts), why you've chosen that path and if you could go back (in the case of owning) what you'd do differently? etc.

If I go the ownership route I'm not taking out a huge/crippling mortgage loan.. definitely under $100k with payments of $350-$550/month.

I like the idea of purchasing a new property every few years, and renting out the previously vacated property in perpetuity.

Not yet at the stage where I can buy an entire apartment block, but that would be ideal and live in one of the units

Number one thing is I just have to live alone, so I'm interested in to all of your living situations.

Cheers!

 

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[jon.a]

We rent one of our SFH rentals. It's complicated.

 

[theag]

I rent (a small 400€/month studio). Wouldn't want to own my own home at this stage of my life. Too much uncertainty and I hate being chained to one place. And I'm barely at home anyways, because I'm always in the office. Maybe in 10-15 years..

As an investment its another thing of course, but I'm not at the wealth preservation stage yet, so I'll think about that when my bank account is bursting.

 

[ilrein]

You're from Toronto right?

Let's get a pad together cuz my parents are about to kick me out...

They promised they would if and when I quit my J.O.B

 

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[DeletedUser394]

You're from Toronto right?

Let's get a pad together cuz my parents are about to kick me out...

They promised they would if and when I quit my J.O.B

Not Toronto, I'm on the other side of the country. Used to live in montreal... it was way more affordable.

 

[DeletedUser394]

Too much uncertainty and I hate being chained to one place.

This is what is giving me doubts at this point also. Although with resources like Airbnb you can turn your place cashflow positive if you want to move somewhere else for an extended period of time. I think @GlobalWealth recently created an interesting thread about this topic.

 

[ilrein]

This is what is giving me doubts at this point also. Although with resources like Airbnb you can turn your place cashflow positive if you want to move somewhere else for an extended period of time. I think @GlobalWealth recently created an interesting thread about this topic.

For me, the airbnb thing is for when you're already balling.

Like, you can have more than one property comfortably that you can rent + pay a property manager. It's gonna be someways before I get there. Not to mention, at least RE in Toronto is stupidly expensive.

 

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[Quark]

If you can afford to own and buy right, I think it's a win.

I have rented in between owning, I personally can't stand renting.

Don't forget to factor in maintenance expenses when owning.

 

[socaldude]

I rent and I will continue to rent until I can buy a home cash in another country.

I know that sometimes owning is a better option but that comes at costs that most people don't take into account such as no liquidity, losing your income, dealing with banks, property taxes, being stuck in one location etc.

My dream is to rent until I can buy a home cash and be an expat. Thinking about Cancun, Belize or Guadalajara.

We say on this forum that the fastlane is a lifestyle. Buying a home with a white picket fence, having a family, getting a 9-5 job, having credit card debt, a mortgage and a car loan is not that lifestyle. Get an entrepreneurial income FIRST then get all of those things for cash. Thats my 2 cents.

 

[NVaz]

Food for thought...
Why I Am Never Going To Own a House Again

 

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[Gsuz]

Can't imaging owning at this point of my life, so I'm paying about 600€ monthly in rent. Don't even know if I want to stay in Germany, not the kind of guy to backpack travel in Thailand either, but the area I'm living in now doesn't really feel like home, though I was born here. Switzerland is amazing if you want to settle down IMO, but having mixed feelings about the Swiss people. Looked at Malta in the past, but don't really like islands and the living standards are lower. Will definitely invest in properties in the future, but I'd rather focus on making more money first and then look into that later on.

To sum it up I would really make sure that the decision you make is flexible enough to be changed in the future if you aren't 100% sure.

 

[Tom.V]

Eh, I've been considering all of this recently (given I've got 4 months til my lease runs out). The main thing for me, is I do want to get into the REI game eventually, and I am very handy. Aside from that, house hacking and living for free, or getting paid to live somewhere is not that terrible. I for one like my city and housing is plentiful. What I do plan on doing is going the FHA 3.5% down path and getting a 2-4 unit property and owner-occupying it for a year (or until I can refi out of the FHA loan) and repeat. The way I see it, going this way at least, is I'll get to live rent free, and then start making money from the properties. Worst case scenario, I live for free. Beats the hell out of a rent payment, and after a little time you can get some equity built up (or you can pay it off if things go fastlane), and then you have even more borrowing ability with HELOC if need be (which, I don't know about you, but I like having more spending ability just in case it is needed).

So yeah, I'm gonna get some property.

 

[The Grind]

James Altutcher says its stupit to own.

 

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[DeletedUser394]

Food for thought...
Why I Am Never Going To Own a House Again

James Altutcher says its stupit to own.

 

[Drq]

James Altutcher says its stupit to own.

He makes some valid points to support that.

I am currently focusing on my business, I am focused on expanding, I am focused on growing personally, and i have a lot of uncertainty in my life. The last thing I need is to get any type of debt that doesn't help me achieve my goals. I am working on an internet based business, and things can change in this world real fast (at least in my case).

Sure, it might be a financially smarter decision to own (although I doubt it), but living with a burden on my shoulders that I must make payments for 20 years, being tied to one location, and having one more worry will decrease my risk threshold. I don't need that.

 

[SSimz]

I currently rent. I'm still in the process of learning how to be more responsible and I haven't committed to the idea of wanting to stay in one area for the next 10+ years.

 

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[Bila]

I own properties ( that i rent) ....But...i live in a rented appartment ( everything is included, no bills, no condo fees, no snow removal, 5 mn from my office ...etc) ....It's a lot of work to own and to have tenants ( trust me ) if i had to do it again, i would rent again, and focus on business

 

[GlobalWealth]

For me, the airbnb thing is for when you're already balling.

that's the perception, but not reality. You can easily start with 1-2 apartments in different places for less than the cost of one larger house/apartment in a more expensive city like Toronto, live in them and collect rent income when not there.

 

[GlobalWealth]

James Altutcher says its stupit to own.

James is a smart guy and I love his unique thought processes. But remember everyone's situation is different. There is not a one-size-fits-all model.

 

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[LibertyForMe]

I've rented for the past few years, looking to buy. Rent runs about $800 a month, so I can get a decent little house for that much, 80-100k or so. I've got a family too, and the wifey is tired of living in a little apartment that doesn't even have a yard, so we are looking to buy. I think it will be a good choice, and if I buy right we can either sell in a few years and make money or rent it out and make money. That's the plan at least.

 

[Vigilante]

Reminder… People that have a mortgage don't "own"

 

[GlobalWealth]

Reminder… People that have a mortgage don't "own"

Technically even without a mortgage you dont own. Disagree? Stop paying property tax and you'll find out who really owns.

 

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[The Grind]

Reminder… People that have a mortgage don't "own"

Technically even without a mortgage you dont own. Disagree? Stop paying property tax and you'll find out who really owns.

Droppin that hammer on your reality! ( lol get it )

 

[RBefort]

I'm 29 and have yet to find my purpose, let alone where I want to live. Buying is ridic in my opinion, unless you are not the common brainwashed dweeb who buys just because they are out of college and have a 40k/yr job, wanting to get married and settle on a mortgage. If you bought a multifamily and live in a unit, way to go! Cliffs: unless you are a smart RE investor and using it for that purpose, I'll pass. My gf will think differently, so check out how that all works out in a few years lolol.

 

[DeletedUser394]

Technically even without a mortgage you dont own. Disagree? Stop paying property tax and you'll find out who really owns.

arrrghh I wanted to say this!! A+

I was actually just looking up countries with no property tax a few days ago (just a one time fee). Shout out Croatia!!! (..among many Caribbean places, middle east, etc)

 

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[DeletedUser394]

I'm 29 and have yet to find my purpose, let alone where I want to live. Buying is ridic in my opinion, unless you are not the common brainwashed dweeb who buys just because they are out of college and have a 40k/yr job, wanting to get married and settle on a mortgage. If you bought a multifamily and live in a unit, way to go! Cliffs: unless you are a smart RE investor and using it for that purpose, I'll pass. My gf will think differently, so check out how that all works out in a few years lolol.

Huh?

 

[Esquire]

Own ... for wealth protection.
Rent ... for wealth acquisition.

Mobility is important.

Plus ... the consequence of defaulting on a mortgage ... versus defaulting on your rent ... is not even close. Don't pay your rent ... lose your security deposit. No big deal. Allow your home to go into foreclosure ... and you could be facing a $50k to $100k deficiency judgment. Hell ... I even have one client right now facing a $1 million dollar deficiency judgment.

Serious stuff.

My advice: Unless you are balling in the Fastlane ... rent.

 

[Vigilante]

My house in Minnesota lost $150,000 in value since 2007. It's not coming back anytime soon.

 

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[Ron Dee]

Interesting points here. Probably just as many pro ownership articles/info out there if you look.

 

[wazboy]

Currently living with parents