Is it better to pay rent, or buy a place to live when..

[easymoney99]

Do you guys think its better to pay rent, while you are building up your business(s)? I'm going to have enough money (30k) saved up, due to living at home, to put a decent down payment on a condo or 1-2 bed place. Should I do that or would it be better to just pay rent like normal, and try to use the money to make more money while living off cash flow temporarily until I can find my Fastlane opportunity? I live in northern California by the way, but I'm open to moving to where its cheaper, just as long as it's not super ghetto, I can't be having my shit stolen


Please advise, as much as I love living at home (no expenses allowed me to start earning decently off internet) its time to put myself into the real world. And start making moves and stepping up to the plate and take REAL swings. Not just affiliate marketing.

 

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[easymoney99]

im tempted to just move to arizona and devote myself the entire fastlane process.. get away from everyone and focus on something

 

[458]

Month to month lease on both living and business space. You dont want to have obligations down the line you cant pay for that could hurt your credit in the long run.

 

[smanzari]

Lease living/business space but buy investment real estate. I've always been taught never live/use buildings you own! (that's when they turn from assets to liabilities!)

 

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[danoodle]

There are many factors to consider. but I tend to agree with what smanzari wrote. The most important factors would be the cost to rent a place vs buy and how long you plan on living there. If you buy a place but plan on moving soon, you could be in a bind if you are unable to sell it; although you could possibly rent it out. I am currently renting my primary residence, but have delved into SFH investing and own several homes and are renting them out. So while I "own my own homes" I don't live in any of them. My friend just bought a condo, but he rents out the other 2 rooms. You could consider something like that if you don't mind roommates or even a duplex. There are many options out there, just make the appropriate considerations for your own situation.

 

[easymoney99]

There are many factors to consider. but I tend to agree with what smanzari wrote. The most important factors would be the cost to rent a place vs buy and how long you plan on living there. If you buy a place but plan on moving soon, you could be in a bind if you are unable to sell it; although you could possibly rent it out. I am currently renting my primary residence, but have delved into SFH investing and own several homes and are renting them out. So while I "own my own homes" I don't live in any of them. My friend just bought a condo, but he rents out the other 2 rooms. You could consider something like that if you don't mind roommates or even a duplex. There are many options out there, just make the appropriate considerations for your own situation.

Right.. that makes sense..

The thing is I have seen a lot of foreclosed condos selling for as low as 65k! So if I paid half of it, it would make it much easier to own outright with 6-8 months. Then if times get tough, I don't have to worry about making a $1200 rent payment, OR mortgage, just the other stuff.

The thing that really ruins this whole plan is HOA fees are like 600+ for these condos... Thats such BS, I wanted to own a place and not have to worry about any more payments, but then I find out about HOA stupid fees....

But after the replies I think I'm going to rent month to month, because I do plan on staying with family in the phillipines this spring for a month or two anyway.. Actually I'd want to live out there for a year, save up and just make a decision from there.. Dang, It'd be nice to have a gf right now, cuz then we could easily get a place together... Sometimes when you get 1 thing, you don't get the other... Now I just gotta work on that too i guess

 

[theBiz]

You need to step things up at home, there is no reason to move out right now. Im being serious right now.... Give yourself 6 months, wake up at 4:30am everyday and work non stop until 6pm. Do that for 6 months, if something doesn't happen to increase income i wouldn't move out yet.

 

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[NewYorkCity]

Staying at home might seem more viable, but I totally disagree. My advice is to move far far away and get a 6 month lease on a house with rent of 500 or so a month with roomates.

When I moved out for college the psychological effect of being 1,000 miles away from home was crazy. I'm much more productive. Slack a lot less. It comes down to knowing if you F*ck up your screwed and as a result you try a lot harder. Without a safety net you really try your best.

 

[ZDS]

I'm a big fan of renting. But not being tied down to one area for an extended amount of time is really important to me. Not to mention, if you think you can get a better return on your investment with part of that 30k rather than putting a down payment on a condo then you also have to consider that.

 

[CPisHere]

Buying condos are a terrible investment 90% of the time - you're better off renting. One, the monthly fees kill you. Two, there's nothing seperating your condo from the 100's of others just like it, making it difficult to get a higher rental or sale price.

If you can find a great deal on a house, it could be a good investment - especially if you live in it & rent out a room or 2 to reduce your monthly payment. It needs to be able to cash-flow though so that if you move out and rent it out entirely the rent covers all your expenses.

 

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[pstchaseki]

DO NOT.... seriously, DO NOT BUY INTO COMMUNITY TYPE HOMES WITH HOA!!!

Speaking from experience. My brother, myself, and a couple of my friends all vow to never ever be part of any HOA what so ever. It's like not even owning your property. It's more like a communist/nazi society.

ie. Restrictions on landscaping, color scheme, when you can have garage door open or closed, how long your trash cans can be out (even if you're working!), what color curtains you can have, how you park your car, what pets are allowed, and many more. WORST of all is they can kick you out and/or take away your home!!!!

Don't do it. It's like the McDonalds of buying a home. Oh yeah, at first the price will seem cheap but then they'll add all the options like what granite, moldings, cables, air conditioning, etc etc etc

Be warned!