Comments on: The Ultimate Home Buying Guide — Buying vs Renting Detailed Comparison

By: RI

RI — Thu, 26 Jan 2012 13:25:27 +0000

Very informative article. I have been torn between renting or buying due to the huge drop in home prices here in Florida and the low interest rates but I have always asked why. I am in my mid-20s making well above the average income for the area, but I honestly like my freedom. If I get laid off then it would be near impossible to replacement for the standard of living that I have here now.

I constantly hear the nagging from friends and family that I should buy a house and start a family. I think you made a good point about the social ideals that get pushed to us on such things. Few have the curiosity to think for themselves and honestly ask if it is right for THEM rather than what is being told to them.

By: bazaillion

bazaillion — Sun, 01 Aug 2010 21:30:28 +0000

To me one of the biggest problems with home ownership now is you only own your house when you sell it. Even if its paid for. A typical 250K house in the mid-west that would go for 2-3x that out west or east. The property taxes are around 5K/yr in the St. Louis/Metro-east area. So even if its paid off you still pay rent to your government landlord. Property ownership is a myth as long as we have property taxes on homes.

By: Meghan Fife

Meghan Fife — Wed, 10 Mar 2010 23:38:41 +0000

Finally! Some real thoughts on BOTH sides of the coin. Good grief, I was beginning to feel like buying a house was the only option. And as a 20 year old who is just starting to earn a full-time income and still going to school full time with dreams abounding I didn’t necessarily want to buy right now or even in the next couple of years.

I’m a little more at peace. Thank you!

By: WestcoastFP

WestcoastFP — Mon, 14 Dec 2009 08:07:57 +0000

Most commentary is very biased in favour of purchasing due to the long reach of the real estate industry. No one promotes the virtues of renting because, honestly, renting sucks! Landlords are either crooked or at best a pain in the butt. Rental accomodations are a sorry affair and people tend to think you are shifty if you reach a certain age and don’t have a property.

Despite these negatives a quick back of the envelope calculation shows that renting and investing in today’s market (at least on the right coast) probably sucks less than renting.

Take a 2 bedroom apartment in the Aria 2 building ( a newer, kinda cool place in a Vancouver suburb) as an example. It might sell for about $475,000 which equates to a monthly mortgage payment of about $2765 over 25 years at 5%. (No down payment for simplicity’s sake.) Throw in $220 for maintenance and $200 for property tax and the total monthly payment is $3185. Ouch!

A quick check of Craigslist shows the same apartment is renting for about $1350. So renting saves you about $1825 per month. Clearly there is an imbalance here. If you were to invest the difference, especially in RRSPs which have a tax advantage, you are going to be ahead.

In general, I favour real estate over renting at the point in which purchasing is less than or equal to the cost of renting.

By: kron

kron — Wed, 09 Dec 2009 02:00:58 +0000

Over here, in Germany, it’s perfectly normal to rent. Only some 43 % of all households live in their own flat or house. These days, it’s unfortuantely all about flexibility. I’d never buy a house unless I had a secure job or enough money to buy a house without a loan. In all other cases, renting something is the better idea. Maybe it’s just a mentality thing…

By: Edwin

Edwin — Tue, 08 Dec 2009 22:29:35 +0000

Great post, I’m glad you tackled the “common wisdom” that buying a house is without a doubt the best way to go. There is a lot more one should consider than just the old “you are throwing money away with renting”, and you did a great job presenting it.

The one thing that is lacking, which is mentioned in the comments, is the noise factor. If you have a loud neighbor there is a higher chance that you will go crazy. Or if you have a weird schedule, in an apartment or condo you might be restricted from activities such as listening to music loud or watching movies loudly.

By: Pat

Pat — Tue, 08 Dec 2009 21:11:19 +0000

Dude, what a fantastic article! Thanks for spending the time you did on it.

I had to go through similar thoughts not too long ago, but my wife and I decided to rent instead of buy at the moment. Because I’m an entrepreneur, the chances of my income fluctuating is very high, so we decided it was best to rent until we can pay a significant portion of a house as a downpayment.

Keep up the great work! Thanks again!

By: Erica Douglass

Erica Douglass — Tue, 08 Dec 2009 21:04:17 +0000

“Depending on the location and the size of the unit, you can potentially save a couple of hundred dollars a month when you rent.”

We save $4,000/month by renting. (Yes, I’m completely serious and I have all of the numbers to back this up.)

The value of the house we live in is, in addition, dropping by about $90,000/year.

I’m happy to have my money working for me (gaining interest) instead of against me (paying interest on a depreciating liability.) It doesn’t mean I’ll never buy, but it does mean house prices are going to have to drop a lot more for me to be interested in buying.

By: Craig

Craig — Tue, 08 Dec 2009 20:00:33 +0000

It’s a difficult decision but at my age have not even thought once about buying. To me you should consider it when you are more ready to settle down but being a post grad and could potentially move I have no reason to buy and prefer to rent and don’t have to worry about anything.

By: David seo consultant

David seo consultant — Tue, 08 Dec 2009 15:08:37 +0000

The single most important tip on home-buying – taste the water. You can change the look of your home. You can change the size of your home. But you cannot change the source of the water. If you buy a home with sulfur-water, aaarrrgh!!!