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Renting vs. Buying your home

Discussion in 'Off-Topic Discussion' started by Leggo, Jul 8, 2012.

  1. Jul 8, 2012 at 1:00 PM
    #1
    Leggo

    Leggo [OP] slow is smooth, and smooth is fast.

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    As a Homeowner and a landlord, I think it's the best time to buy right now. I also think in "most" cases, buying your home is wiser than renting. I would hate it when the rent goes up and you can't do anything about it if I rented. Owning means a pretty much fixed price on dwelling expenses (taxes may vary, but not a great amount) If you don't have a solid career in a solid area, renting makes sense.
     
  2. Jul 8, 2012 at 5:23 PM
    #2
    Doc35

    Doc35 Well-Known Member

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    What's your point?

    Of course now is a good time to buy, housing prices are down 35% since Obama was elected. In most populated areas a mortgage is much less than rent.

    The average home price in Detroit Michigan is $5000, yes you read that right. Some homes can be purchased for as little as $500.........of course this all depends on if you want to live in a modern day ghost town.
     
  3. Jul 8, 2012 at 6:54 PM
    #3
    Larry

    Larry Well-Known Member

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    There has always been advantages to home ownership.

    However, with those advantages comes risks and responsibilities.

    Some are not stable enough...wise enough...or mature enough fiscally, to handle those risks & responsibilities.

    It's part of the reason for the housing/mortgage meltdown we experienced a few years ago.

    And no, President Obama had nothing to do with it. (the argument as to his administration working toward a housing & mortgage fix is another story for a different forum)
     
  4. Jul 8, 2012 at 8:41 PM
    #4
    EdwardHBLW

    EdwardHBLW Well-Known Member

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    I think it all depends on where you are in life. If you're in your twenties or thirties, looking to switch careers and/or move, then renting is where it's at. If you know you'll be there for the long haul, then buying makes more sense. Once closing costs, down payment, homeowners insurance, HOA fees are factored in, with the slow growth and/or decline in home prices we've seen in recent years, picking up and moving just ain't as easy as it was when home values climbed steadily.
     
  5. Jul 8, 2012 at 8:47 PM
    #5
    Leggo

    Leggo [OP] slow is smooth, and smooth is fast.

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    My point was to start a conversation and possibly learn something from someone with a different perspective. A lot of folks think differently than I do on the rent vs own subject. The advantage today around buying is not so much the cheap prices of "some" houses, but more the rates being offered.But if that is too much then never mind.
     
  6. Jul 8, 2012 at 9:33 PM
    #6
    amocat 777

    amocat 777 Well-Known Member

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    I think you all have raised some good points. In southern Ca prices have seemed to be leveling out. However a average home in my area starts at about 350 k. Yes you can buy cheaper but schools and neighborhood are not the best. Not to mention 2% to 2.5% property taxes. Rent prices are also going up. Around 1600 for a 2 bedroom,close to 2 k for a 3 bed. At least with a purchase you have rent control and you can write off mtg. Interest and property taxes. We just have to remember a house is not a ATM machine that we should continuously tap in to for things we don't have the discipline to save for.
     
  7. Jul 8, 2012 at 9:36 PM
    #7
    babytruck

    babytruck Babytruck, babytruck...I've got a babytruck :)

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    Mortgage payments CAN go up if you are not on a fixed rate. Also, if you are in a place that has HOA, then it can be a drastic change without much notice. Sometimes enough to where it does become a problem if the difference is a few hundred.

    Also have to remember that when a home is assessed, it too can affect the taxes that are paid as well as insurance, if reported.
     
  8. Jul 8, 2012 at 9:47 PM
    #8
    amocat 777

    amocat 777 Well-Known Member

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    15 year fixed is the best way to go. 30 year fixed is also good, try to make extra payments. Everybody just got stupid, stated income loans,interest only loans. Adjustable rates look good until your payment doubles. Unless your military and planning a short stay, i dont like the to gamble, i go with fixed rates only.
     
  9. Jul 8, 2012 at 10:02 PM
    #9
    Lightningtodd

    Lightningtodd Well-Known Member

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    I bought a house in June 2007 just as things were starting to go downhill. At the time everyone had the same screaming message: "buy a house...it's an investment, and you are throwing away money if you are renting". I was planning to stay put in this house for 20+ years, and so I locked in a low rate on a 30yr fixed mortgage. If I were to buy the same house today, I could have spent $40-50k less given the changes in the local housing market. And now my future in this area/city isn't as clear cut as I thought it was 5 years ago. Not to mention, it feels like all I do is work on my house: constant upkeep of the yard, various preventative maintenance items, and I have just finished a bathroom remodel that nearly killed me. As they say: "you don't own a house, it owns you". In hindsight, I would certainly do things differently, but I'm not entirely sure how.
     
  10. Jul 8, 2012 at 10:15 PM
    #10
    amocat 777

    amocat 777 Well-Known Member

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    Been there....i only wish i knew then what i know now!:D
     
  11. Jul 8, 2012 at 10:40 PM
    #11
    TheKid

    TheKid Well-Known Member

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    I've been thinking about trying to buy a house. My problem is it seems like everything that I feel is in my price range is a short sale or a apartment. I don't know if I want to get in that mess. I've heard of short sales taking forever, and I have a hard time justifying buying a apartment.
     
  12. Jul 9, 2012 at 7:43 AM
    #12
    babytruck

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    Short sales are exactly that. Quick sales. Just have to make sure that you read and understand all of the contingencies and issues because a lot of times, you are taking a house "as is".

    Stay away from apartments, and if you can, condos. There are plenty of good deals to be had if you go down highway 4 a bit. Just yesterday I saw houses in Brentwood that are 3 br, 1800 sf for the low 300's.
     
  13. Jul 9, 2012 at 7:56 AM
    #13
    BamaToy1997

    BamaToy1997 ASE Master Tech Vendor

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    Short sales are not actually called "quick sales". In many cases it can actually take MONTHS to close on a short sale. What a short sale is, is where the purchase price of the home is less than what is owed to the bank, and the bank agrees to "settle". Banks do NOT want to forclose on a home! It actually costs them more in the long run, and they know it. That is why so many banks will work with you if they can. I had a friend buy a house on a short sale and it took him 6 weeks to close. The bank still had a $90k note owed on the house, but the market value was only about $75. The bank agreed to the $15k loss so that they wouldn't have to deal with a house that would be sitting stagnant. My buddy came in on a decent position, but even he knew there was a risk of housing prices dropping even lower, and being upside down in the mortgage.
    And yes, ANY time you buy a short sale, you get it as-is. That is the main contingentcy.
     
  14. Jul 9, 2012 at 8:32 AM
    #14
    macgyver

    macgyver Well-Known Member

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    It also really depends on your attitude towards upkeep.

    In my opinion, if you are someone who has absolutely zero handy skills fixing things and you tend to neglect things, AND you don't have a lot of extra money to pay someone to fix things then home ownership is NOT for you. Houses require a lot of maintenance and upkeep. Even new homes. There isn't a landlord or maintenance man to call and fix things when they break. You better be able to fix it yourself or have the money to pay someone to fix it. I have some neighbor's who should be renters, their houses are only 5 or so years old and they already look run down because they have done NOTHING to keep them up. They're lazy bums who are bringing down everyone else's home values.

    I bought a house because I wanted to "Mod" my house. Generally speaking, modifying a house (provided you don't go overboard) will pay you back in the long run vs. modifying a vehicle where you just throw money away. When I was renting I felt like I was throwing my money away and I couldn't personalize the space because it was someone else's home.

    Even though I bought my house in 2007 and I'm now $40k upside down, I still enjoy my home because IT'S MINE and I can do what I want to it. One thing I'm glad I did is bought a house that I could "grow" into vs. some of my buddy's who bought small townhouses or condos that were great bachelor pads at the time, but now are starting families and they're stuck with their small townhome or condo because of the down market. I can stay in mine and realistically have 2 kids here before I need to think about getting a bigger place.

    But again, home ownership isn't for everyone. Irresponsible people should not be homeowners.
     
  15. Jul 9, 2012 at 8:34 AM
    #15
    Pugga

    Pugga Pasti-Dip Free 1983 - 2015... It was a good run

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    I prefer owning for the simple reason, I can do whatever I want. I can move walls, build a deck, landscape, etc. I've rented way too many apartments that were nice but I was always "if I could knock that wall out, this would be perfect!". Now I own a house and love the freedom! The scary part about owning is, you own it. There's no landlord to call when something breaks. Fortunately, I'm on public water and sewer but wells and septic systems can be very very very expensive to repair or replace if something goes wrong.
     
  16. Jul 9, 2012 at 8:51 AM
    #16
    XXXX

    XXXX Well-Known Member

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    Why? Do you have any facts to back that up? Pretty much all of Europe would disagree and our economy wouldn't be in the pisser if we didn't push everyone to own a home. I have to agree to totally disagree based on info I have seen written by economists. The worst financial and social mistake I have ever made was buying a house.



    My real estate taxes have only risen 74% in 8 years and now are almost $500 a month for a house I paid $130k for :cool:
     
  17. Jul 9, 2012 at 8:53 AM
    #17
    Zombie Runner

    Zombie Runner Are these black helicopters for me?

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    thats nuts! In Texas 300k will get you a Huge house.

    http://www.wfar.com/viewproperty/1_1_16_439_123001/


    http://www.wfar.com/viewproperty/1_1_47_59_123588/
     
  18. Jul 9, 2012 at 9:03 AM
    #18
    babytruck

    babytruck Babytruck, babytruck...I've got a babytruck :)

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    Here, the average mid range home probably runs in the 800k. That's why I started investing out of state. :D.
     
  19. Jul 9, 2012 at 9:59 AM
    #19
    OZ-T

    OZ-T Did you get your precious photos ?

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    Same here
     
  20. Jul 9, 2012 at 9:59 AM
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    Zombie Runner

    Zombie Runner Are these black helicopters for me?

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    OMFG:eek:
    you could own a mansion here...with land!
     
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