A
female
age
30-35,
anonymous
writes:This is not a relationship question.As a young adult who has a BA degree and a stable career, would you recommend I put a down payment on a home and buy it or continue to rent? My mother tells me to buy a house so that I can own something and sell it when the market goes up. I have no desire to be a homeowner at this point in my life. I don't like the idea one being stuck in one place for too long and not being able to leave. I am single and I don't need a 3 bedroom house with just me living in it. I don't want room mates either so renting out the other rooms would not be an option. I would like to travel frequently soon as well now that I am finished with undergraduate school. I know when you rent you are essentially "throwing away" your money, so my question is, through your own experience which is the better option? Do I rent or buy a house?
View related questions:
money, no desire, roommate Reply to this Question
Share |
Fancy yourself as an agony aunt? Add your answer to this question! A
female
reader, malvern  +, writes (31 July 2013):
 If you can afford to buy then it is better than renting because it's an investment. I had my own house from the age of 22 and, at that time, felt it was like a millstone round my neck. I felt tied to it. However, it didn't stop me from going away and I locked it up for three months and went to live elsewhere for the sake of a job I had at that time. Maybe it's best to get the travel bug out of your system and then buy after that. You may meet somebody on your travels and decide to buy in the area they live in, who knows.
A
female
reader, sugarplum786  +, writes (31 July 2013):
 Hi, lets put it this way, you would rather pay rent and never own the place. But if you buy a house and pay towards a bond, you will eventually have a freehold house. The only reason people rent out their house is to get an asset that someone else funds the bond through the rent they pay. So look at it from a financial perspective, its better to pay a bond than pay rent. Nothing stopping you from selling or renting the place should you decide to move. Keep an open mind and look at the positive gains rather than being tied down.
...............................
A
female
reader, pinktopaz +, writes (31 July 2013):
Well I think it depends on where you live. I personally think it's good to own something and it's a buyer's market right now. But, if you don't see yourself staying anywhere long, I think you should buy IF it's easy to rent out your home. I live in a beach city, so you can place your home for rent and usually have it rented by the end of the week. If you live somewhere where it's a little harder or takes longer to find renters, then it'll probably save you time and money to just continue renting.
...............................
A
female
reader, anonymous, writes (31 July 2013): since you don't want to be tied down geographically in the near future, then don't buy. unless you can afford both a mortgage as well as rent an apartment elsewhere? that way you can buy a house as an investment property but not live in it. You can rent it out to help pay the mortgage. Meanwhile for your own living situation you can rent wherever you happen to be. I have several friends and family who do this, but I don't know anyone who had the money to do this at your age!But if you can't afford both and have to choose one or the other, then dont' buy if you don't want to have to sacrifice geographical mobility. You can always sell the house if you want to move elsewhere, but putting a house on the market and selling it is a huge royal pain. And if that happens fairly soon when the market isn't much different from now, it will be a tough sell.I've known people who bought a house and then had to sell and move after 2 years due to getting laid off and having to relocate for jobs. I've also known people who rented the same place for over 20 years. When you rent, your monthly payments are often lower than the mortgage of a similar sized property. You can invest the difference, like in stocks for example so it is not "throwing money down the drain" entirely. Also, when you own, you have to pay a lot of extra costs that renters don't. You have to pay for all repairs and maintenance (as a renter the landlord does it), or else do it yourself. You also have to pay property tax. So there are a lot of hidden costs to home ownership that make renting less of a "throwing money down the drain" thing.
...............................
A
male
reader, C. Grant  +, writes (31 July 2013):
 Owning real estate has been good to me. But there's a time and a place for everything. When you're young, single and wanting to travel renting makes a whole bunch of sense. You can be gone for two weeks or a month and your apartment building will have been tended and supervised in your absence. And you don't have to worry about maintenance.
I bought a house after I was married and when we were planning to have kids. That too made sense. But my house is only about 20 years old and the maintenance is endless.
Keep the ownership option in mind for when it makes sense for you. In the meantime enjoy your freedom.
...............................
A
female
reader, Honeypie +, writes (31 July 2013):
 I bought my first place at 24 - no regrets there, but.. the market was way better back then.
If you don't WANT to own a house now, why do it? I DO understand your Mom's logic that you can either pay rent for something that isn't yours or you can get a loan and slowly pay off the house and then it IS yours.
I think if you are 22-25 I would honestly wait a few years before buying.I would probably rent cheap too. Specially if you are looking forward to travelling a lot. Why buy a house now then?
...............................
|
