Is it advisable to buy a home rather than rent it in your city?

China
July 6, 2010 8:42pm CST
Buying a home requires wealth,but if you are rich enough,will you choose to buy a home rather than rent it? Economists suggest that rent/price ratio should be higher than the average investment return in your region.But it cannot explain the situation in Shanghai,where I currently live.And I also had an idea that we should buy real estate in America,where loan defaults prevail. Tell me about your place.And pls remark where you live.
3 responses
faisai
@faisai (1138)
• Hong Kong
9 Jul 10
The real benefit of renting is the convenience to switch place and enjoy the downturn of economy (which should usually lead to lower rent). Buying a house and paying the mortgage means you spend partly on the "rent" for the money you have borrowed (yes, not on the house, but on the money you borrowed) and partly on saving (yes, because you have paid back some of the money). In Hong Kong, the mortgage payment per month is actually lower than the rent. So, you know my opinion.
Andyvil
@Andyvil (793)
• Philippines
7 Jul 10
I think it is better for young people to save their money first and rent instead of buying a house. I for one have no immediate plans on purchasing a house. I would rather rent and save the extra cash for a rainy day.
spalladino
@spalladino (17891)
• United States
7 Jul 10
Until recently buying a home in the U.S. was a good investment and it will one day be a good investment again. You don't have to be rich to buy a home in the U.S. You just have to have a decent job and decent credit. There used to be programs that helped first time homebuyers with the down payment and other costs but I'm not sure how many are available these days.