Why Renting is STILL Better Than Owning a Home

wilsongalyeJune 29, 2013

The ability to own a home is as hard as it has ever been. In the last few years most of them selected a renting home than owing a home. But whatâÂÂs your choice? Is it depends upon the financial situation?
Advantages of renting
Usually when you price out the cost difference, renting is really affordable. You don't have to pay property taxes as a renter and just buying a house costs money like closing costs, insurances, etc.
Here's one thing to keep in mind that I think about. If you rent, you have the luxury of picking up and moving.

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christopherh

Um, you DO pay property taxes when you rent. Those taxes are part of the rent you pay. And if the taxes go up, the next lease will reflect that.

And yes, you can pick up and move. And that's part of the fun of being young.

Just for kicks, I went to the website of the apartment my wife and I rented when we got married. Back then (1972) the rent was an outrageous $205 a month. And you had to make a month's rent per week in salary. Don't forget, you could buy a brand new Toyota for $1,995 back then.

Today that exact same apartment rents for $1,205 a month. This was a 1 bedroom 650 sq ft garden apartment in Randolph, New Jersey.

You buy a home, the mortgage stays the same for the life of the loan, and currently you can deduct the taxes and interest you pay. Can't do that with rent money, but your landlord can.

    Bookmark   June 29, 2013 at 3:17PM
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christopherh

Another thing. If you don't have renter's insurance, you're crazy. Your landlord is responsible for the dwelling, but nothing in it. A fire burns the place down, his insurance makes him whole, but without renter's insurance, you're out in the cold.

    Bookmark   June 29, 2013 at 3:20PM
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cathyyg

People somehow came to look at houses as an investment, meant to endlessly and rapidly appreciate in value, so they could be sold in order to buy a bigger fancier home. People no longer buy a home with the idea of paying it off and owning that home. People enter into new mortgages in their 60s and 70s. It is insane. The original idea is still solid. Buy a house and pay it off. Thereafter you will only owe the property taxes and utilities, which is a big help when trying to exist on Social Security and a small pension if you are lucky enough to still have one.

    Bookmark   June 29, 2013 at 10:29PM
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christopherh

We purchased our starter home in1975. And we did indeed use the profits to purchase larger homes. And now that we are retired, we built our modular retirement home in Vermont and used the proceeds from our last house to pay cash for the current one. So yes, we only have our property taxes and utilities.

    Bookmark   June 30, 2013 at 6:58AM
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Guy954

Renting is throwing money aways, especially as far as mobile homes go.

even lot rents, unless you find cheap ones is very expensive.

In my first 6 years in south Florida I spent over $50K in rent.

When I turn 55 I am going to buy a cheaper mobile home with land or into a co-op where the share is $30K and some homes only cost a few thousand more. then I will only be paying the HOA fee which is only $60 a month where you own the land and they don't have amenities, or $160 with a co op that gives you free water, free satellite TV and does you lawn maintenance.

    Bookmark   October 13, 2014 at 11:04PM
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