Renting vs. Owning

[mdr55]

So what are the advantages/disadvantages of owning a home or renting the place where you live?

Sometimes I think renting is okay because you don't have to worry about property taxes, if something breaks the person you're renting from has to fix it and stuff like that.



This message was edited by mdr55 on 8-15-04 @ 2:26 PM

[JPMNICK]

i rent, mostly because I am saving money to buy a house.

Advantages - No taxes to pay every year or maintence if you owned a condo in a development.

Anything that breaks gets fixed by someone else for "free"

Young neighbors (usually a few per developmet)

You do not have to furnish a whole house, just a small apartment. Can slowly buy things instead of a huge initial investment

No Closing costs. Closing on a house can cost up to 10,000 dollars after all the fees. Thats some sick shit

Cheaper payments. An apartment can be be had for 800-1000 per month in some parts of Northern NJ. It would be tough to get a mortgage that cheap, especially with the price of houses.





Dis-advantages -
Most obvious is that you are "throwing your money away". I do not think this is true. What if you bought a house for a starter home and then when you go seel it 3 years from now the market is shit and no one wants to buy it.

Close proximity to neighbers, so you can't play music loud.

not allowed certain pets

can't paint or make holes where ever you want



http://home.comcast.net/~nickcontardo/a_schilling_ft1.jpg
Thanks to Monsterone for my first sig.

This message was edited by JPMNICK on 8-15-04 @ 2:30 PM

[FUNKMAN]

owning advantages:

> in the basement we get to jam as loud as we want at anytime
> skinny dipping
> claim mortgage interest on your tax return
> equity loans
> nobody with bad habits living upstairs, downstairs, or on the other side of the wall

owning disadvantages:

> responsible for your own indoor/outdoor maintenance... includes painting, mowing, snow removal and a couple hundred other things...
to me this is a BIGGIE...
> if you bought during a 'high' market and have to sell at a 'low' market... some people would have to pay/owe the bank more money than they would receive from the sale...
> real-estate taxes keep going up every year. i don't believe rents go up each year?

<img src="http://img.photobucket.com/albums/v53/monster6sixty6/guests/fm2_sig.jpg">

[JPMNICK]

Rent is fixed in NJ.I think it can only go up like 4% or something like that.

Mine went up 25 dollars per month this year, which is not even 4%

http://home.comcast.net/~nickcontardo/a_schilling_ft1.jpg
Thanks to Monsterone for my first sig.

[Mike Teacher]

Both sides sound good to me

People are mortgaged to the teeth here. why is that saying always 'the teeth' beats me, but $1,500+ a month to rent aint that bad when people are carrying Mortgages with payments of that much. And that before you start to include luxuries like heat and electricity.

But I gotta say this, I went from parents home to college dorm to college apartment to condo to a house, and owning that house and the land? That feels like home. That's a very very expensive price for a 'feeling' but I think that's exactly what some want, that, 'this is my Domain' feeling.

[insert Eminent Domain debate here, but thats a tangent]

Of course, many days I'm like, why the fuck did I do this? My father on getting a house, 'Congratulations! I remember the day well; I lost complete Financial Control of my life for the next 15 years!'

Are there even 15 yr mortgages now? I dont know shit about real estate.

<IMG SRC="http://members.aol.com/miketeachr/anisig3">

This message was edited by Mike Teacher on 8-15-04 @ 2:44 PM

[JPMNICK]

yea a 15 year mortgae is great if you can swing the payments. Thanks to the wonderful of compound interest, the amount that you pay back on a 15 compared to 30 is HUNDREDS of THOUSANDS less. Its insane

http://home.comcast.net/~nickcontardo/a_schilling_ft1.jpg
Thanks to Monsterone for my first sig.

[Mike Teacher]

Nick, [can I call ya Nick?] what the hell does the JPM mean?

Anyway I agree again on the insanity of compound interest. I got the house lecture, and earlier the credit card lecture, and he showed how insane the whole things was. He said buying a house outright, if possible my any means short of a mortgage is, on paper, a really really Dumb idea. But he'd do it if he could. To him the idea of three decades of payments to some Bank? fuck that.

Those are two extremes, but yer right, its like a credit card, you can buy a $1,000 Computer and either

-pay $1,000 next month and Done.

-Pay $2,500 over years if you go with paying the absolute minimums while the Nut compounds at APRs of 19.99% or 24.49% or whatever Insane rate some cards can have. The $2,500 is a guess, but, the idea is there.

<IMG SRC="http://members.aol.com/miketeachr/anisig3">

This message was edited by Mike Teacher on 8-15-04 @ 3:06 PM

[JPMNICK]

Mizzle you can call me whatever you want.

BTW, JPM stand for J.P. Morgan which is the company I worked for when I made this screen name. Now I am a consultant. Still working there sometimes though. And come december when my 2 college degrees come in the mail I will be availibale to the highest bidder!!

I am trying to save as much a possible to put down on a house. The more you can take off the initial, the better. Hopefully the parents can kick in some money for me.

Did you know if you make one extra payment per year towards the principal of your mortgage you can take off 7.5 years of payments on a 30 year mortgage. Its sounds crazy, just 13 payments per year instead of 12. Or pay every 2 weeks (1/2 the monthly bill) instead of every month and the same thing will happen

http://home.comcast.net/~nickcontardo/a_schilling_ft1.jpg
Thanks to Monsterone for my first sig.

[Mike Teacher]

Ok so we essentially composed the same post at once. ESP rules!!!

JP Morgan?!?! Nice! The Big Boys.

<IMG SRC="http://members.aol.com/miketeachr/anisig3">

[curtoid]

I've been in the same apartment building for 12 years, and in the same apartment for 9. It's a very large 2 bedroom on the top floor of a 5 story building. I have a view of the city, and when the leaves fall, I look over Arlington National Cemetary.

The neighbors are great - one of the benefits (I consider it a benefit, at least) of living when I am is that it is so diverse. I have a Russian on the floor, a mother and son from france across the hall from them, lot of Etheopeans. We have all flavors of hispanics, not that many Asians, but some. A number of middle easterners, and some good old fashion whites and blacks.

We have 2 or three "mixed race" familes with kids; we've had gay and lesbian couples; there are a lot of families with children from infant to "you're 18 you should be out of here by now." Lots of singles, over the years. We also have the elderly that todder around. From the womb to the tomb.

Whenever I need something fixed or painted, it's done. Last year when my dish washer broke, I had a new one two days later.

All of my utilities are wrapped into my rent, which is just a little bit over $1000 a month now (it goes up 4% every March). The only real drawbacks for me at this point is (a) I would love a washer and dryer in my apartment (we have two on each floor); (b) I would love the freedom to do some real changes to the place; (c) the kitchen is too small - a "one ass kitchen" and (d) even though I same still one person, and I continue to try to purgeout my stuff, I could actually use a 3 bedroom apartment.

My cat loves it, though, and so do I. I am planning on buying something, but it's gotten too expensive, really - a one bedroom condo is around $300K, while crummy slapped together town homes are over $600K; and moving out isn't really the best option either, as many of those homes are getting too pricey.

Maybe Baltimore.



http://img.photobucket.com/albums/v64/curtoid/curt4_sig.jpg


"Don't believe everything you read on message boards." - RB

This message was edited by curtoid on 8-15-04 @ 4:12 PM

[cumbiero_81]

I decided to buy straight out and not even rent.. I had the money and was really happy of the location and I still am..

I'm 23, married, baby daughter, and life really slapped me in the face in a manner of months.. I hope to move to the Midwest with the money I get after selling my condo..

Sometimes making quick thought investments come to your favor.. only if you know what the consequences will bring.

<html>
<center>
<img src = "http://www.cumbiaycuarteto.com/Graphics/Ron_Fez_Banner.jpg">
</center>
</html>

[mothershucker]

Here is the dif, when you leave your rental, you get a deposit back. When you leave your owned home, you get every penny you put into it, and then some. Of course, if you only plan on living somewhere for a year or two, just rent, not worth the enitial investment of bankers fees, lawyers fees, termite inspection, lean check, etc. etc. etc....

I shucked it, and I shucked it, and I shucked it, i'm quite the mother shucker

[JohnnyCash]

Right now Im living with my parents. Im able to save my money enough to hopefully put a down payment on a house in a year and possibly buy an engagement ring. We looked for an apartment a few different times and it just seems that if we wait another year and save we could afford a small house. A friend of ours has been renting the same place for 3 years now and his rent is about $2,000 a month. After the 3 years hes payed nearly $70,000 in rent. That $70,000 could be a nice downpayment on something. Luckily Im not being forced out of my parents house and have the chance to save a bit so I can own something and not have to rent.

<IMG SRC="http://www.osirusonline.com/cashsig.gif">
Thank You Reefdwella

[wilee]

I own a condo in Central Jersey. Not as many restrictions as you would have with an apartment, but there are still a few since it's a "shared" domicile. I have a great view of the inlet, but there are some things that suck, such as the time when the snow removal guy didn't show up for two days, requiring me to walk about a mile in the snow to the train to get to work.

My mortgage and maintenance costs brings my monthly costs to around $1100. I'm sure if I bought a house, it would probably be a fair shade more. Right now, real estate is a seller's market. If the bubble bursts, you'll see the prices start to come down.

Hell, I have a friend in real estate who says he could get me twice what I bought my place for. That would be a nice little chunk of change to have (even after paying off a few bills).


<IMG SRC="http://cwjr.home.infionline.net/sigpic.gif">

[reeshy]

People are mortgaged to the teeth here. why is that saying always 'the teeth' beats me, but $1,500+ a month to rent aint that bad when people are carrying Mortgages with payments of that much. And that before you start to include luxuries like heat and electricity.


Sorry disagree with that....If you're paying that much in rent, you have no equity. In 1978, I bought a home. The mortgage was was $795 a month at 7% interest...that was ALOT of money in those days...add on the utilities, insurance...oh yea...and the taxes...but you know what ? I payed off that house and sold it for a nice profit (very nice) after my wife died...there's nothing like owning your own home!!!

[center]<IMG SRC=http://img.photobucket.com/albums/v53/monster6sixty6/guests/resh_sig.jpg>
[center]

This message was edited by reeshy on 8-16-04 @ 4:58 PM