Buy or rent a house?

@salam1 (1475)
Malaysia
June 8, 2007 7:42am CST
I am interested in buying a hose, currently I am renting. But after reading books etc, I found that buying and renting have pros and cons. For examples: BUYING A HOME; pro - I will built an asset as the value of the house will increase, con - Even though the value will increase there will be no cash flows into my pocket, if I sell the house then I can earn the increase in value. RENTING A HOUSE; pro - Its cheaper to rent, if I have extra money then I can invest in stock, the stock (hopefully) will grow in value and dividends from the stock will flow into my pocket now, con - I will not see the rent that I pay to my landlord forever. So, what do you think about this guys?
1 person likes this
6 responses
• Philippines
20 Jun 07
There's a saying that goes like this "there's no place like HOME"..so for me its really an advantage to have your own house. Actually im also renting for now and planning to buy my own house if i can save enough. Imagine for 8 years of renting, whew! how much money i contribute for free with my landlord? if you will calculate that amount its really an awesome money. and besides when you call house your own, its a relief compare to going home in a "boardinghouse".
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@salam1 (1475)
• Malaysia
26 Jun 07
You are right. I have renting for 6 years now. Feel like the rent keep seeping my money every month. Not good..
@bcl_me (583)
• Philippines
16 Jun 07
I am into the same situation as you are...I am currently renting an townhouse in the metro...I decided to rent because I used to have a daytime job but now that I am a freelancer and not so busy and do not need the metro to survive, I have decided to buy a house somehere far away from the urban areas..the house is so small but I have the option to upgrade to a much bigger house if I have some more money.
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@salam1 (1475)
• Malaysia
25 Jun 07
I have visited your homepage several days ago. It seems that it was a very successful business you run there. I wish you good luck!
@VotreAmie (3037)
• United States
13 Jun 07
I agree that buying and renting both have pros and cons. I think it depends on the situation of the person. If you have the money for the down payment then I would think that buying is better because you build equity with the house. For someone who is not stable and knows they can change their job soon, then they can not stay in a house long enough to build profit for it, then renting is cheaper. They can leave whenever they want when they need to jobs or for any other reason. When you rent of course, you can also build profit if you invest in the stock market etc. So investing in real estate is not the only solution. But I do think that when you know that you are going to stay in a place for at least some years and are sure of that then buying a house in a place where you know the prices go up with time, then it's the best solution. This way no need to deal with a landlord, and you can do whatever you want in your house. I like that feeling. Whatever you decide salam, good luck!
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@salam1 (1475)
• Malaysia
17 Jun 07
Thanks for your opinion my friend.
@TriciaW (2441)
• United States
8 Jun 07
I have done both. The one thing is if you own it then you have to pay for anything that breaks down. That has been our biggest expense. Now actually my house payment is less then what rent was. The nice thing about owning is that you can do whatever you want with your home where you can't with a rental. I have to say I perfer owning verses renting. It is all in your preference and what you want. I know at some point I will have my house paid off and when I retire I won't have that expense. Best of luck to you!
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@salam1 (1475)
• Malaysia
15 Jun 07
Great to hear you already own a house. In my place renting is cheaper than buying a house. I am agree with it is great to have a house when the golden years comes. Thanks.
@sunshine4 (8709)
• United States
8 Jun 07
I have always felt that buying a house is much more of an investment than renting. You have something to resell at the end of your stay where if you rent, you have nothing when you move out. Buying a home also helps with build up your credit. In our area, you can buy a home for the same house payments as many are paying monthly for rent. It seems silly to me to rent unless you plan on moving very soon.
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@salam1 (1475)
• Malaysia
8 Jun 07
thanks, lucky you in your place buying is cheaper than renting..
@fazelath (1176)
• India
20 Jun 07
building an house and renting is a secure investment,where as investing in stocks u may get good returns as well as there can be loss to,u need patience to invest in stocks ,be carefull investing in stocks
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