Is it better to buy a house or rent one?

@asxenon (1440)
Malaysia
October 19, 2010 2:45am CST
Previously, people would prefer to have their own house. But nowadays, house price are increasing like crazy. With a normal wage, one wouldn't be able to own a house. Even a husband and wife's total income is sometimes not enough for them to own a house. Do you think people still prefer to own a house or do you think it is good to rent a house and use the rests of the money somewhere else for example food and child's education instead of putting all your money into housing loan?
5 people like this
50 responses
@owlwings (44172)
• Cambridge, England
19 Oct 10
It very much depends on your circumstances, the cost of the mortgage/loan available to you, whether you can find the capital for a deposit and also, of course, whether there are suitable properties to buy in the area. For most people, it is more expensive to rent a property than to make the payments on a property loan, especially if the loan is longer than about 25 years, so, if you are thinking of staying in the same house for any length of time, a mortgage is definitely a little cheaper in terms of regular payments. There is the added advantage that, since property prices tend to rise, when one sells to buy another house, you (as the owner) pocket the 'profit' and, if you have made any improvements, you see the benefit. Really, the choice of whether to rent or buy is a matter of balancing a number of variables and, to a certain extent, speculating on the future value of the property. If you rent a house, ALL of the payments you make are 'expenses'; if you take a loan, on the interest you are paying on the loan is 'expenses' and the balance (over and above interest) is, effectively, 'savings'. If the monthly outgoings are about the same or even a little more for a loan, you are actually likely to be better off in the long run.
2 people like this
@owlwings (44172)
• Cambridge, England
19 Oct 10
Correction: "... if you take a loan, only the interest you are paying on the loan is 'expenses' and the balance (over and above interest) is, effectively, 'savings'."
1 person likes this
@asxenon (1440)
• Malaysia
21 Oct 10
I do agree that if anyone who is financially capable, he/she should buy a house. Anyway, house price is hiking like nobody's business and people can't even afford to pay for the down payment. Even if they can come out with the down payment, it is still not enough for them to take up a loan. If their loan is approved, they still face problem paying the installment. Prices of property is increasing as many speculators are actually buying houses to make profit, which causes local people to bear the burden of rising house prices. What can a person with little wage do besides renting a house? He can't buy a house with the current salary he has unless he buy a house in urban areas far away from his workplace.
@jdyrj777 (6538)
• United States
20 Oct 10
Wouldn't it be nice to find a rent to own?
1 person likes this
@asxenon (1440)
• Malaysia
21 Oct 10
You mean buying a property and rent it out?
@jdyrj777 (6538)
• United States
22 Oct 10
Maybe they dont do that in your country. Here in the usa you can sometimes find houses that are for sale but you are paying rent and the rent is toward purchase. Personally ive never bought so im not sure what the difference is.
1 person likes this
@asxenon (1440)
• Malaysia
24 Oct 10
That means there must a an agreement that says that after renting for a certain tenure, the property will belong to the tenant right? Anyway, i think it is not easy to find such property in my home country.
@aerous (13452)
• Philippines
22 Oct 10
I think if you have money to buy a house, better to buy than renting. Because if you rent, you waste more money by doing that. If you buy the house, you can say that you have your own property. But renting is not yours and pay more and more in that matter
@asxenon (1440)
• Malaysia
23 Oct 10
I do agree that buying is better in most instances. However, many people are less fortunate to own their own house especially when house price are increasing like crazy. Investors are coming in and hike up the price of local property. The ones that suffer is the residents that would like to buy a house for stay :p Cheers!
@aerous (13452)
• Philippines
24 Oct 10
I agree with you that most people are less fortunate in life. But if you have money and can afford to buy a house why still renting? For me I prefer to buy if I have enough money. If the money is enough only for a lot. I will buy that lot and I will build a little house then If having enough money again. Build a good house...
1 person likes this
@asxenon (1440)
• Malaysia
27 Oct 10
But sometimes, when you are committed to a loan and that loan takes up all your income, what are you going to have to support the family? I do agree if one has at least some extra for food etc, else they might have to settle by renting a house.
@puccagirl (7303)
• Israel
19 Oct 10
I would want to own one. It gives you security, and also, if you do not take a very long mortgage, you can live there for free once you are older, which is great. I also prefer it because no-one can kick you out, and I think it is really important for children to have a home when they grow up. So I am currently saving for a down payment for a house!
1 person likes this
@asxenon (1440)
• Malaysia
19 Oct 10
I do agree that owning a house is far better than leasing one. Anyway, not much people can actually save enough to buy a house now, unless the rich. Furthermore, usually mortgage term is 30 years if you can afford one. And if you buy at age 30, you'll only own the house when you are 65 years old. Unless your pay minus your monthly installment still have some amount to spare, it is difficult for one to own a house.
@owlwings (44172)
• Cambridge, England
19 Oct 10
Don't forget, Asxenon, that very few people actually take a mortgage and expect to stay in the same house (or even keep the same loan) for 30 years. I have owned 5 houses in 40 years. I was somewhat fortunate (but not unusually so) in that I happened to sell each one for rather more than I paid for it and was able to add a little to the deposit each time to get a slightly better house as the size of the family changed. I think I actually changed the mortgage company three or four times, taking out a new loan and paying off the old one to get a better deal. The hardest part, especially where I live, is finding the deposit which is usually about 10% of the price of the property. It is much harder for young people today to find the necessary fifteen or twenty thousand pounds for the deposit - nearly a year's salary - than it was 30 or 40 years ago (when I think my first deposit was much less than half a year's salary).
2 people like this
@asxenon (1440)
• Malaysia
21 Oct 10
Thanks owlwings! Investing in property sure are great to earn money. However, like you say, many people can't even afford to buy the first house for investment. As for me, i have actually bought a house but is still in development. However, when it is completed, i would be using it for personal stay instead of investment. If i were to invest the unit, then i might need to rent a place to stay, unless i have more than 1 property. I think that's the reason why rich people are richer and poor people never become rich.:p All the best to you and hopefully you'll profit from all your investments.
@ellyse2003 (1464)
• Philippines
19 Oct 10
Depends on the house you are going to get, for me, I want to have a house but I'm still studying.
1 person likes this
@asxenon (1440)
• Malaysia
20 Oct 10
Great! Having a house is wonderful, hopefully your dream will come true when you work. Good luck and all the best in your studies!
@asxenon (1440)
• Malaysia
20 Oct 10
Great! Having a house is wonderful, hopefully your dream will come true when you work. Good luck and all the best in your studies!
@betty110 (66)
• China
31 Mar 11
That is the same thing that bothered me. Previously I would only accept to buy a house of my own. But I found it is really so hard. Maybe you have to save money for many years and still could not afford that. Rent a house will be a good idea. You can use money somewhere else, and will not have much pressure.
1 person likes this
@asxenon (1440)
• Malaysia
9 Apr 11
Who doesn't want to own a property? However, how many can afford to own one?/ These are the general situation faced by young people, no matter where you are in this world. House price increase quite alot recently but starting salary for most jobs remain the same as those 20 years ago. How are future generation going to afford a house? Currently most people that buys a house would have to pay at least a 30 year loan :p
@sweet_pea (3323)
• Philippines
31 Mar 11
It is a case to case basis depending on some factors. Financial capacity. Are you capable of owning one? Does your financial status permit you to buy a house? Are there other source of income apart from your wage that would enable you to pay for your house amortization? You can afford to pay now but what if you lose your job will you still be able to pay for it? Nature of job. I think if your work requires you to move from one place to another, it is not advisable for you to own a house because eventually you will have to leave it. Sense of responsibility. Are you ready to take on the responsibility of paying the house insurance, taxes and maintenance cost? Well this is just some factors to consider if you want to own a house. Renting a house seems a lot easier but in the long run it still saves you a lot of money if you would still buy a house of your own.
1 person likes this
@asxenon (1440)
• Malaysia
9 Apr 11
Yes. Most people dream to have a house, but instead they don't have financial stability to own one. Some people on the other hand have financial stability, but their nature of job prevents them from buying properties. Some people choose to invest in properties to earn money, but usually those are rich people.... and as usual rich people gets richer but poor people were unable to benefit from this.
• Philippines
28 Mar 11
we all prefer to buy our own house, it's just that our financial capabilities refrain us from doing so. of course it is but normal to put your money where it is essential such us your basic needs (education of children included) but i guess if you can find a house which can be rent to own, it would be better to get that than to just rent an apartment. come to think of it, how much have gone to rent alone right from the start your family rented a house? perhaps if will add everything you have paid, the amount would be something that would nearly buy you your own. it's just like putting all your coins in a piggy box that has a hole underneath. your money is gone. unlike if you get a rent to own, or get a housing loan (if you have extra money), it's not that hard to pay knowing that it will eventually be yours. invest in buying your own lot, the good thing about it is that it appreciates and then erect a house when you have enough savings or find a house and lot which is rent to own. my piece of advice.
1 person likes this
@asxenon (1440)
• Malaysia
30 Mar 11
Rent to own is really something great, however, it is not easy to find such houses in many places or even non exists in certain country. Most people would still need to borrow housing loans to be able to own a house. Anyway, if people can afford to play for the monthly installment for the house, then it would be advisable for them to find a house that suits their needs and financially affordable. Anyway, for those who moves often due to job nature, renting is still their best option.
@Janexiao (173)
• China
25 Mar 11
I think many people are more likely to have their own house, they will feel securer and warmer, but for me ,i think it's really no need to buy a house before 35,you can spend your money on self-improvement or some good investment, so you can earn more money, during this time, renting one is a good choice, when you career is stable, you can buy one
1 person likes this
@asxenon (1440)
• Malaysia
25 Mar 11
I totally agree that those who are motivated and whose partner/spouse does not mind to rent to do so. In the long run, you'll be able to buy a better house/ a house you really like. However, if a person is not motivated/like to spend on unnecessary things instead of investing, it is good for him/her to buy a house as it will shrink down his/her spending and also he/she will have a property at hand.
• Philippines
8 Nov 10
That is why there are housing loans because if you do not have cash to buy one, you have it monthly through a financing or hosing loan. The money that you will be paying for the rent, you can pay that for your monthly bill for your house if you go for a housing loan.
1 person likes this
@asxenon (1440)
• Malaysia
8 Nov 10
However, for housing loan to be approved, you can only loan a certain amount of your income. If your income is not high enough, then your loan wouldn't even be approved. I agree that if loan is approved, then to pay for loan is better than paying for rent but if you can't even have a chance to get a loan, then you'll have to opt for renting. Have a nice day.
@mauie0918 (337)
• Philippines
2 Nov 10
I really like to have my own house. It's an investment for me! But still maybe I don't have savings to buy my own so I am staying with my family.
1 person likes this
@asxenon (1440)
• Malaysia
2 Nov 10
It's good that you know how to plan for your future. Having a house should really be in one's goal. I do hope u'll be able to own a house of your own. Anyway, do make sure you do proper survey and research before committing on buying a house. A house might be the biggest investment in one's life, therefore be careful on choosing the correct one.
@LadyDD (518)
• Romania
29 Oct 10
If the family has enough money to afford to pay a monthly installment for a credit, then it's worth buy a house. If they rent a house, they will have to pay again a monthly rent. Why not use that money to pay the monthly installment for a credit instead of the rent? They will have their house.
1 person likes this
@asxenon (1440)
• Malaysia
2 Nov 10
If someone wish to stay for a long time in that area, then it is of course a good idea to invest on installment of a house rather than to pay for rental. Anyway, if someone is still unsure of how long he/she would be working at the place, maybe rental is still a way to start of with.
@tonyllenium (6258)
• Italy
24 Oct 10
in my opinion is always better buying an house also because is a primary goods in veryone life and so you can have it and in time watching the price raise up in any case!!Surely buying an house is not so easy and normally needs a big investment so it si coplicated but i think that is a good thing especially if ina family have sons ..in this way you are sure that a primary goods will be available for them and it would have always a good value in time!!
1 person likes this
@asxenon (1440)
• Malaysia
27 Oct 10
I do agree that house would be a good investment if we properly research the area before buying. Anyway, it depends on your budget and priority in life. Some people might use all their money to buy a house but some might actually use the money for travelling and enjoying. It all depends on individual.
@strongsz (163)
• China
24 Oct 10
I would rather to rent a house. If I bought a house,I have to live there for a very long time even for all my life.I don't want to be in a same place for a long time.So if I rent a house,I can live whereever I want in the center of the city or in the country and so on.Renting a house is more free and comfortable.
1 person likes this
@asxenon (1440)
• Malaysia
27 Oct 10
That is really a good point to rent a house. Why restrict yourself to staying at a single location all your life :p Maybe you can buy a house when u think of settling down :D
@K46620 (1993)
• United States
22 Oct 10
Right now it's better to rent. Housing prices are being artificially propped up.
1 person likes this
@asxenon (1440)
• Malaysia
23 Oct 10
That's what i am trying to imply. Whether it is a good time to buy a house when house price are hiking like nobody's business.
• Canada
21 Oct 10
i like living in a apartment.
1 person likes this
@asxenon (1440)
• Malaysia
23 Oct 10
Do you rent the apartment or buy it? Thanks
@SHAMRACK (8584)
• India
21 Oct 10
Dear friend, A have a house in good location is always an asset. Moreover I feel those real estate is a business. Also renting an house is also an income. I would buy an house if I have enough cash than to live rented. It is purely depending upon the budget one have.
1 person likes this
@asxenon (1440)
• Malaysia
21 Oct 10
Yes, the amount of money one has is what determines whether to buy or to rent. No matter how good owning a house might be, without a budget for it wouldn't do any good :p For those who plan to buy a house, better get yourself ready with a good sum of money and some for contingency in case you lose your job :D All the best!
@bellis716 (4802)
• United States
21 Oct 10
The answer to that question is, "It depends." There are many things to consider when deciding whether to buy or rent. How secure is your job? If you were downsized, could you still make the payments? Is there much of a chance that you might be transferred to another part of the country? How good are you at fixing things, or would you have to call a repairman if anything went wrong with the house. Buying a new house does not mean that there will be no maintenance. If you are handy with tools, maybe an older house might be your best buy. What about the school system? Compare house payments with price of rent, but remember that rents usually increase with time. However, house payments usually increase, also, even on fixed rate mortgages, because of increased taxes.
@asxenon (1440)
• Malaysia
21 Oct 10
You are correct, there are thousands of things to consider before buying a property. Each option whether to buy or to rent do has its pros and cons. Have a nice day! Thanks.
@goldeneagle (6773)
• United States
20 Oct 10
I would definitely prefer to own a house. Unless you are only going to be living in an area for a short period of time, I wouldn't recommend renting. I especially wouldn't recommend renting a place if you are planning to live in the same area for the rest of your life.
1 person likes this
@asxenon (1440)
• Malaysia
21 Oct 10
I do agree to that. If staying only for short term, it is better to rent and when you found a place you would like to settle down, then you can invest and buy a house there. :p
@KrauseHome (36624)
• United States
20 Oct 10
Well, here in the US we have continued to see more properties in Short Sales, Foreclosures, etc. especially if they were bought during the housing boom, but personally I feel if a person can afford a house, it is the way to go. Overall it is a property you own, can fix up the way you want, is Tax deductable and will be something worth doing. When you pay rent to someone you never have anything to show for it, but personally you do need to examine your budget and look at everything and make sure you can afford it, but to own a home for me is where it was at.
1 person likes this
@asxenon (1440)
• Malaysia
21 Oct 10
I do agree that in long term, owning a house is better than renting one. Furthermore, house is actually a good investment and might even bring you income if your house prices go up. Anyway, not everybody can afford a house as house price in many places has increased a lot and normal wage workers no longer can own a house by them self.