Do You Think It's Better to Rent a Home or Own a Home?

by SodaHead News Posted 2011/02/25 19:00:00

Related Topics: Credit, taxes, Home, Tax

373 votes
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	It's better to rent	84 votes	23%
	It's better to own	289 votes	77%

The collapse of the home market has people seriously reconsidering the "American Dream."

Our grandparents and our parents continually pounded into our heads that we wouldn't be successful until we owned a home. Being a dedicated part of the community and having a stable place to live would lead to a happy life and a happy family, our folks told us. But is it so?

The general myths surrounding home ownership are these: If you rent, you're throwing your money away; owning is a safe path to savings; and you can build equity.

With the explosion of the housing bubble, none of these are true for the most part. Homes are now worth less than they did three years ago, and no economist believes owners will be able to get that back, inflation aside. Property taxes continue to rise.

If you rent, you don't have to worry if a pipe bursts. You call the landlord. There are no taxes to pay, and in the end, after all of the expenses are added up, renting can be cheaper. You can also up and leave much easier.

But is home ownership strictly about financial reasons? How much is stability and a sense of community worth to you? While our parents might think that home ownership leads to contentment and financial stability, we now know differently. What would you do?

+22

Add a comment above

Dano 2011/02/25 22:08:34

It's better to own

+10
It is unfortunate that Obama's renting the White House from the Chinese.

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More polls by SodaHead News

lauren dull 2011/02/26 00:27:57

It's better to own

+3
It's always better to OWN anything rather than rent.

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Mrs. V 2011/02/26 00:27:49

It's better to own

+2
And this depends on where you are financially. I say, own as many houses as you can afford and rent them out. It is a win-win situation.

However, Do Not buy a house unless you save for a 20% down payment. If you are young and have a good job, buy and house and rent the spare rooms to friends until you decide to marry or get sick of them.

Take out a 30 year fixed and pay as much as you can each month. The low payment will help you, and the extra $$$ towards the principal will cut your mortgage in half in just a few years. Don't buy more than you can afford.

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TommyTN to Mrs. V 2011/02/26 00:32:31

+1
I just want to add that if you qualify and can manage the payment (PITI) without endangering your ability to repay on time, month after month, a 20 or 25 year FIXED rate mortage is well worth looking into.

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Mrs. V to TommyTN 2011/02/26 05:34:12

+2
I mentioned 30 year, because I have a friend who just refinanced to lower her payments, however she intends to pay more, but was drowning with her 15 year fixed.

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TommyTN to Mrs. V 2011/03/12 14:34:22

Understood, not to mention that 30 years is almost a standard in property lending. 20-25 as mentioned, can save you a "truckload" of interest IF you can make the payment without having to "scrimp."

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Mrs. V to TommyTN 2011/03/13 23:25:58

I agree, but she was floundering in her 15 year fixed.

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TommyTN to Mrs. V 2011/03/16 12:17:59

Understood. It's not for everyone.

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Mrs. V to TommyTN 2011/03/16 15:25:09

+1
If you ask me, now is the time to buy.

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TommyTN to Mrs. V 2011/03/18 12:57:31

+1
I agree. There are a lot of excellent buys on th emarket -and- I'm told mortgage rates (in some cases) have slipped just below 4% !! It doesn't get much better than that !!

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FordCrews 2011/02/26 00:25:48

It's better to rent

+1
It's better to rent until you are set in your career and sure you aren't going to have to change companies for at least 5 years. The biggest mistake someone young can make is buying a home, and locking themselves into a town where you can't jump up and move on a moments notice, and end-up not being able to take that step that would have set you on the road to success. If you look around the world, the rate of home ownership is directly opposite to the employment rate, meaning the higher percentage of home ownership, they higher the unemployment rate.

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Beccy 2011/02/26 00:20:25

It's better to own

+4
Even if I am under water My money is not going for someone else to own a home. Someday it will be mine.

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Eric 2011/02/25 23:59:09

It's better to own

+3
Totally dependent on your situation. If you plan on staying in an area for an extended period and have stable employment it is probably better to buy because of the freedom and independence it offers. But if you move a lot or live in some areas where rents are low and house costs are high, it is better to rent.
Either way, historically the increase in value of a house is offset by the maintenance costs required. A house is not the way to wealth, normally.

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convex 2011/02/25 23:53:38

It's better to rent

Depends on the market. I own quite a bit of land, no structures. I can afford to build on my land, and it's cheaper than buying a ready built house.

...tying up capital in real estate...yea, enjoy poverty.

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DJ 2011/02/25 23:51:57

It's better to rent

+1
I wouldn't want to get into the market now, even with low interest rates. I do not want to a bank to own any part of me! There is freedom in renting! No taxes....so shoveling...no mowing...no painting..no fixing anything! I owned a house once, or should I say...." The house owned me!"

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katiecakeface07 2011/02/25 23:28:14

It's better to own

+4
I personally think it's better to own, but I guess it depends on your lifestyle and if you want a permanent residence for many years or just to live there for a while for the experience before moving to try another place.

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Anna 2011/02/25 23:15:25

It's better to rent

At least rented homes: you know what you're doing, they're often cleaner, you may live longer in them (alive), you can relax a bit about them and they don't deal with the bank so bad. If you have to keep track of dates on a calendar though and you're like 70, I hope you don't lose sleep over stuff and start to get insomnia.

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"Run-A-Way Bill" 2011/02/25 23:12:10

It's better to own

+3
Sure, it's better to own, BUT (damn those "buts") just remember one important factor ... the house owns YOU, you don't own the house. If you are a "nester" and enjoy cutting lawns, pulling weeds from the garden, racking leaves, repairing roofs, and working 3 out of 5 days towards the mortgage, insurance, & repairs, then go for it!

In many markets (in this economy), you can rent a super house for half the cost of a mortgage & let someone else pay the up-keep.

BUY "freedom & memories" ... not stuff! The truth is "Stuff" owns us, we don't own "Stuff"!

pARTy On! ...

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winterhawk56 2011/02/25 23:05:45

It's better to own

+3
It's always better to own, but the question is are they ready to own.

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JohnDavidBurling 2011/02/25 22:49:56

It's better to own

+3
In the long run it is better to own, but for you guys that move every ten years, just rent property values are not stable enough to buy and then sell once you are ready to move, buy when you are ready to settle down, rent until then.

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Michelle 2011/02/25 22:34:09

It's better to own

+3
Once you have the money, buy a home. When you rent for an extended period of time, you could easily pay enough in rent to have purchased a house... and you're still renting.

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Birthpangs 2011/02/25 22:27:20
Wolf 2011/02/25 22:19:35

It's better to own

+3
It depends on your preference...some people know how to invest and enjoy the rights of ownership while others just cannot handle the tasks and responsibility and would rather focus on other things...

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Dano 2011/02/25 22:08:34

It's better to own

+10
It is unfortunate that Obama's renting the White House from the Chinese.

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Torchma... to Dano 2011/02/26 02:12:29

+4
Here is obaaaama, getting the keys to the WH:

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Dano to Torchma... 2011/02/26 16:42:46

+1

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tea for... to Torchma... 2011/02/27 13:56:03

thats showing respect not any thing else

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Dano to tea for... 2011/02/27 17:18:12

The man has no shame.

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tea for... to Dano 2011/02/27 13:55:21

do you know how the WH got to be white?

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Dano to tea for... 2011/02/27 17:20:33

Let me guess

Pigeon Dung.

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tea for... to Dano 2011/02/27 17:24:49

burned down and the ashes were used to paint the WH once it was rebuilt , Guess who burnt the WH down after they chased the invaders back

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Dano to tea for... 2011/02/27 17:44:29

The British in 1812

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RV ~ The Peacekeeper of PHAET 2011/02/25 22:05:19

It's better to own

+2
It depends on how much money you have though.

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Mr. Smith 2011/02/25 22:03:18

It's better to own

+3
It depends on your financial situation. People who can't afford a home shouldn't own a home, they should rent something cheap and build up enough money in order to afford a sizable down payment on a home, then do a 15 year fixed rate mortgage.

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Bear 2011/02/25 21:58:45

It's better to own

+2
since I own, I just gotta believe it's better......tho I may not always own.....so what does that say?

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I am me 2011/02/25 21:56:32

It's better to own

+3
But honestly, it really depends on your lifestyle, your financial status and savvy, the area in which you live and about a billion other factors... For some people it is better to rent while others it's better to buy...

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MOMMA THOMAS 2011/02/25 21:48:52

It's better to own

+1
EQUITY, IF YOU BUY AT SANE PRICE.

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Fidelito 2011/02/25 21:44:08

It's better to rent

+1
I would say, it depends on the location,in South Florida or California, I would rent.

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Angie 2011/02/25 21:35:47

It's better to rent

+1
Unless you are planning on spending at least 10 yrs in your home it's not worth it.
My husband was under the impression it's best to buy a home even if it's a pc of garbage so long as you're owning it instead of lining the pockets of some landlord,

Let me tell you, we are right now on the market for sale and guess what we're looking to rent.
3 houses later (we bought and sold); 9 yrs later he finally gets it.

It's not worth it. We've owned, flip them but we sacrifice so much bc we're always in a bad area.

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chas 2011/02/25 21:33:08

It's better to own

+1
unless the rent is SUPER low-cost for that area.

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Andrew 2011/02/25 21:31:34

It's better to own

+2
Without a doubt it is better to buy a home! Renting exposes you to continuingly rising cost! I recently purchased the house I have been renting for the last three and a half years! I actually was able to lower my payment by $25 per month due to very favorable interest rates! This includes the escrow account which pays my taxes. And insurance as well! NOW, is a great time to buy!

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