Home Buying in Columbus>Question Details

Creative10, Home Buyer in Columbus, GA

Is it better to buy or rent a home? if buy why if renting why?

Asked by Creative10, Columbus, GA Mon Dec 6, 2010

Writing a paper on Renting Vs Buying.

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Answers

16
As in the stock market - Buy low, sell high.

If we are not at the bottom of the market we are close to it and certainly closer than 2-5 years ago. Loan rates are at historic lows and buying now, if you can afford to, just makes good economic sense. Remember, the only way to determine the bottom of the market is to look back at it, meaning it has already passed. Take advantage of the low prices, low rates and large availability of homes to choose. Add in the tax advantages and you will find it is a great time to be a buyer, bad time to be a seller.

Go for it - stop helping out your landlord.
1 vote Thank Flag Link Mon Dec 6, 2010
Let's start with renting. If you have shakey credit this is probably your best option. You can always repair your credit and purchase at a later date. If you're only going to be in that particular area for 2 years or less I'd suggest renting. Home values aren't appreciating high enough for you to sell in a short period of time so you'd probably be upside down when you sell and this will cost you money because of all the real estate fees involved with selling a home. The payments you make help the owner of the home payoff their morgtage instead of your own so you build the owners equity instead of your own.

Now let's talk about purchasing a home. There are so many upsides to this. In the long run the money you're paying for your mortgage will build equity in your home. In the history of real estate there's only been a few times that values have gone down so purchasing a home is one of the biggest financial investments you might every make. There's still a tax break for owning a home and hopefully that'll never change. How about the pride of owning your own home. You can personalize your own home which you can't do if you rent. There's is upkeep and maintaining a home but that's all part of the big picture.
0 votes Thank Flag Link Wed Apr 6, 2011
Creative10,
Great question! Buying a home gives you an opportunity to gain from actually owning the property should propriety values increase. In addition as the owner you control the property and can make changes / upgrades to the property to increase the value. Ownership also offers some tax advantages you don't get with renting. Ownership is usually a great long term value. The downside is if you buy a home you may have to keep it for years to see the appreciation in this market. Renting is a good option if you need short term residence and don't care about property appreciation, or building equity. An advantage to renting is if you don't like where you live for any reason you can move when your lease contract ends. Another advantage is you normally are not responsible for property repairs. That's the landlords responsibility. The disadvantage is that you don't build equity and may see your rent increase as the market changes or your landlords expenses increase. A possible hidden advantage to renting is if you can rent with the option to buy and the landlord / seller allows you to have some control of the property. If this is allowed, you may be able to make changes to the property and sell it for a possible profit. In closing, this is a great market to buy a home as interest rates are low and prices are low. Add that to a large supply of homes with some sellers very motivated to sell and you have a fantastic buyers market.

All the best,
Gary Geer

http://www.GaryGeer.com
0 votes Thank Flag Link Wed Apr 6, 2011
Certainly buying a home has advantages. The investment ultimately becomes a substantial portion of ones assets and wealth and during the purchase period, the mortgage interest provides some income tax relief. Home ownership does require some time and money to maintain, repair and keep in good working order all facets of the home. Some folks won't want to complete necessary repairs or have strapped themselves with such a mortgage that they can't afford the repairs. If you are too busy or just don't want to take on the responsibility of care and upkeep of you home--perhaps the renting route is ultimately the best for you. That said, there are more positives to buying a home than to rent. long-term. Why pay your landlords retirement, when you can invest in a home over the course of 25 to 30 years and have a home that solely belongs to you?
0 votes Thank Flag Link Wed Apr 6, 2011
With today's low interest rates and low prices on homes, why rent when you can buy? With homeownership you can deduct your mortgage interest, build equity, and have control over the home you live in. It is an investment that will benefit you over time. If you are experiencing credit issues or don't have the money for the down payment, you can work to rebuild your credit and take advantage of first-time homebuyer programs which provide downpayment/closing cost assistance.
0 votes Thank Flag Link Wed Apr 6, 2011
Mortgage rates are still low, so why not take advantage? When rates go back to high levels, guess what you would have only 1 choice - just rent as buying will be more difficult for you. Presently, you have both choices available to you - the better of two is to buy - so why not buy if you can. Also why pay the landlord's mortgage when you can ?
0 votes Thank Flag Link Wed Apr 6, 2011
Buy is always the answer if you plan to be there at least 2 to 5 years, given that the property is in good condition
0 votes Thank Flag Link Wed Apr 6, 2011
It depends on how long you are planning to be in the rental market.
0 votes Thank Flag Link Tue Apr 5, 2011
I would advise you to buy if possible. There are so many advantages to home ownership! You are not paying someone else's mortgage, you get the tax deduction, you are building wealth by having assets. These are all positive steps for anyone!
0 votes Thank Flag Link Tue Apr 5, 2011
The New York Times published an online rent vs. buy calculator that does a great job of extrapolating this decision for any individual.

Check the web reference.

Did you publish your paper? Is it online? I want to read it!
0 votes Thank Flag Link Mon Jan 3, 2011
Renting is better if you are still not sure where you want to settle down. Can you picture yourself living in Columbus, GA for a while? If not, then rent.

Renting is better if you don't care about building wealth. Yes, obviously you have to accumulate real assets if you want to build wealth. However, not everyone cares about wealth. Some people don't mind helping their landlords pay for their real estate assets as long as they have the freedom of moving whenever they please. If this is your reason for renting, then don't sign a 1yr lease. That would be the worst of both worlds - not building wealth and not having the freedom to move.
0 votes Thank Flag Link Mon Dec 20, 2010
Here is a video I recently recorded to answer the same question.."Should i rent or buy?"

http://mortgagevideoblog.com/frequently-asked-questions/shou…

I did a comparison analysis of renting a 2 bed room apartment here in Santa Clarita(Los Angeles) vs.
buying a $200K condo.

Ask your lender to do a similar analysis so that you can see exactly what make more finance sense
for your situation.

John Yang
661-877-4656
http://www.MortgageVideoBlog.com
0 votes Thank Flag Link Mon Dec 20, 2010
If you can afford it financially and mentally then buying a home is the way to go. It not only helps your credit, if you pay on time, but it also gives you certain tax breaks that a CPA can inform you of. Simply put, you are not paying someone elses mortgage every month like you are when you rent. Wouldn't you prefer your monthly rent payment to be adding to your equity not someone elses? Your home will always be a liability even when paid off due to taxes and repairs but it will be far cheaper in the long run and more rewarding.
0 votes Thank Flag Link Mon Dec 6, 2010
Creative10,
Buying a home has historically been the most popular, and safest, way to build wealth. It will likely be the largest investment most American's will ever make and it's value will increase over time. However, timing is everything. Stability is key. For example, if you plan on relocating in a year or so, it is probably wiser to rent. Keep in mind that the current tax law states you pay taxes on the gain on sale of a house if you have lived in it less than two years.

With that being said, interest rates and home prices are at historic lows and it truly is a fantastic time to buy if it makes sense in your current situation.
0 votes Thank Flag Link Mon Dec 6, 2010
Hi Creative, There are so many reasons to buy property theres just not enough room here to state all of them,so we'll just write a few.

1. Owning a Home is one of the greatest gifts you can give yourself, your family and your life's enjoyement
2. When you own a Home if you want to paint your living room multiple colors you can.
3. When you own a home and say run alittle late on your payments you can't be kicked out in 30 to 45days.

4.When you pay a mortgage taxes insurance etc you get certain tax breaks

5. When you own a home and you decide to leave it, you can sell it and possibly make some extra money, when you rent and leave you just leave with no benefits that home ownership has.

6.when you own a house its a place that you really do call HOME and provides a place where family and friends gather and where you and yours become a part of the community and have a voice about what goes on.

7.Our final comment about rent vs buy is today's market has so many great deals, non foreclosures since right now alot of foreclosures have a huge amount of issues. We're saying regular owned homes are such a great deal with plenty of potential equity you just can't go wrong.

All the Best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Mon Dec 6, 2010
. Like with most questions regarding real property, Creative, the answer is usually it depends. What it depends on is you, your family’s situation and needs, ability to secure a mortgage if not a cash buyer, how quickly you may need to move again, etc. Find a good realtor in the area you are considering and begin the process of deciding. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.SellsRealty.org
0 votes Thank Flag Link Mon Dec 6, 2010
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