tag:blogger.com,1999:blog-5817205780911729159.post4796071889612319990..comments2023-06-25T06:35:00.953-04:00Comments on Retail Pharmacy, Life, and General Lunacy: Rent vs. OwnPharmacy Mikehttp://www.blogger.com/profile/06988761844897996541noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5817205780911729159.post-73275601231210264462008-04-22T17:40:00.000-04:002008-04-22T17:40:00.000-04:00There are definately a lot of factors in deciding ...There are definately a lot of factors in deciding whether to rent or own. Prices, mainly, which depends on your area so not many of us can comment on that.<BR/><BR/>I'm actually closing on my first house in three weeks. I'm paying 150k for it, and with interested, that will come closer to 300k when the 30 year loan is up. WHEW! <BR/><BR/>I'm still a younger adult, just got out of college and I'm learning the ins and outs of financing. But one of the reasons I'm buying a house is because it's a living piggybank. With renting, obviously, you just write a check and that's the end of it. But when making a mortgage payment, most of it goes toward my actual ownership of the house. minus any interest or taxes. <BR/><BR/>All things being equal, if you can find a house where your mortgage would be the same as your current rent, then buying would obviously be the better option. But there are too many factors involved for anyone to tell you to make a choice.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5817205780911729159.post-52254569844896092762008-04-17T21:24:00.000-04:002008-04-17T21:24:00.000-04:00I think this only applies to certain areas. Sure,...I think this only applies to certain areas. Sure, if I want to get a house in a neighboorhood I'm not really too fond of, I can't find a great deal. However, if I want to live in a nice neighborhood close to work (the property values in the surrounding towns are astronomical), I'd have to pay quite a bit more.<BR/><BR/>You can't touch a decent condo for less than $200,000 around here. Moreover, if you wanted to get something like a townhouse style condo, it will run you over $300,000. Without a huge down payment, you're looking at a very large monthly mortgage payment.<BR/><BR/>At this point in time, I really don't want to be bothered with owning a house. Too much upkeep. I have trouble hanging up my clothes. There's no way I'll want to mow the lawn and do other yard work.Pharmacy Mikehttps://www.blogger.com/profile/06988761844897996541noreply@blogger.comtag:blogger.com,1999:blog-5817205780911729159.post-55309276175856180422008-04-17T20:49:00.000-04:002008-04-17T20:49:00.000-04:00Your analysis makes sense. BUT - right now youve ...Your analysis makes sense. BUT - right now youve got a golden opportunity.... property is cheap and getting cheaper. If you start looking around, you can get some real steals on property right now, that is sure to appreciate in the coming years. Maybe not as dramatically as in the past, but it will do well.<BR/><BR/>Then, you will have a mortage that is about the same as your rent, but the interest becomes tax deductible, giving you what ends up being a 30% dicount on your mortgage. Add in price appreciation (say you buy a house for 100K and it appreciates 5% per year - your real number shoudl be higher since you can probably buy at a 10-20% discount in this market), that means every year you make at least 5k on your property, plus being able to live at a discount.<BR/><BR/>THATS why buying makes sense... especially now.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5817205780911729159.post-41549012610782435372008-04-17T16:49:00.000-04:002008-04-17T16:49:00.000-04:00Mike- You are so right in what you said. I rent t...Mike- You are so right in what you said. I rent too. People have pretty much gotten off my back over it.<BR/><BR/>When they do get on me (us) they are repeating what they have been told, that it is better to buy, without really thinking about it as you have. I may print up what you wrote too. So I can hand it out to people should the need arise. <BR/><BR/>I would also add that renting allows me to have the luxury of earning less money per year. I don't feel like I have to work like a dog. I am free to work less. Which I love. I have instead bought mental health!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5817205780911729159.post-5180473925945237152008-04-17T10:05:00.000-04:002008-04-17T10:05:00.000-04:00Mike- I agree with your reasoning on renting vs ow...Mike- I agree with your reasoning on renting vs owning. I do own a home and have lived there 17 years.<BR/>By renting you save on those items mentioned by the above others but also tools. Rakes, shovels, hoses, drills etc. You just need a whole lot more tools when you own. Also with a good landlord not only will they do the repairs but they may also do upgrades such as paint and carpet for a good long term renter. Owning is great when house values are going up, but that is not going on now in most places. You could buy and still lose value unless you are very careful.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5817205780911729159.post-57657919161450514492008-04-16T23:28:00.000-04:002008-04-16T23:28:00.000-04:00Hey Mike:Renting a reasonably priced abode makes g...Hey Mike:<BR/>Renting a reasonably priced abode makes good sense. Since my divorce, I have lived in a small cottage for 9 years and haven't had to pay property taxes or upkeep/maintenance. And renter's insurance is cheaper than homeowner's insurance. It's a very modest place, but I do not need more than this 2 bedroom, one bath home -- I live alone. Who am I trying to impress? No one. When I need a house, I hope to pay cash for it -- or at least put down a large down-payment (like you). Yes, with the buyer's market for homes, I have been tempted to take the plunge and buy a house. However, my parents live out of town and are aging. I may have to move in with them and help with their care. Why should I buy a house when I may have to move and sell it in less than 5 years and possibly take a loss, when one or both of my parents experience failing health? Renting comes at a price, but it gives you much more freedom and less hassle when you have to move, should the unexpected (or expected) comes home to roost. A friend of mine (who recently moved out of state) has had her previous house on the market for over a year. She has been in the unfortunate position of paying 2 mortgages, 2 insurance policies and double the upkeep on her real estate holdings. You can add in the stress of owning an out-of-state home you can't check on regularly. The property values in my particular area indicate she's probably not going to turn a handsome profit on her old house.<BR/>I suppose I'm just agreeing with you, but your post struck a strong chord with me.<BR/>Great blog, BTW. Take care.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5817205780911729159.post-72923310699804662052008-04-16T20:15:00.000-04:002008-04-16T20:15:00.000-04:00How are we ever going to meet if you're such a rec...How are we ever going to meet if you're such a recluse?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5817205780911729159.post-67613778567820127342008-04-16T19:41:00.000-04:002008-04-16T19:41:00.000-04:00I rent for pretyt much the same reasons you do. t...I rent for pretyt much the same reasons you do. the only way to make money on real estate is to pay cash on the barrelhead. Otherwise, you're just giving the bank inteerst money. Or, as I call it, money for nothing. I onc figured it out, and even at a very low interest rate, you wind up paying roughly 3 time sthe cost of your house with a mortgage. that's called interest folks. so if those idjits who say you are throwing your money away on rent holler again, whip out your calculator and figure out how much their payments ove rthe lifetime of the mortgage add up. i'll bet it's more than the house cost them. AND they won't get that much if they sell it either...Carolhttps://www.blogger.com/profile/07047009380102911866noreply@blogger.com