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Mortage vs Apartment living cost

 
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 06:54 AM
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Re: Mortage vs Apartment living cost
as for utilities for an owned house, well+r-osmosis machine and solar panels, leaves you with internet and a power bill around 50$ for both.

Plus land to build a workshop and a few plots of gardens.

Back to rent life,
(renter) Can I _____?
(2 weeks later) No.
 Quoting: Anonymous Coward 1342725


LMAO ...
Care to add the costs of installing the Osmosis system and your solar system.
Do you think everyone here just takes your word for it being so easy and CHEAP?
Please feel free to be honest as it is easily attainable information on the net.
Go ahead, include your costs for the above systems.
You are trying to influence with your OPINION and what could be, instead of just being honest.
Anonymous Coward
User ID: 19490298
United States
02/17/2013 06:57 AM
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Re: Mortage vs Apartment living cost
I'm ready to embrace the RV lifestyle. I'm hating house upkeep and cleaning. It's nice home and my payments are cheap, but all I'm doing is sitting in this house watching money go up in smoke on upgrades. Over it.

In the next two months, I will be on the road and my house will be sold by next year. Not worth it.
Anonymous Coward
User ID: 11634141
United States
02/17/2013 06:58 AM
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Re: Mortage vs Apartment living cost
mortgage: 600$ monthly payment +

4,300 tax yearly/12months=358$

600+358= 958$

not too bad.....i guess


apartment living, i can get a very nice 2 bedroom w/ all utilities included for 750$

200$monthly difference lets say for the next 360 months=72000$ You'll be saving living in an apartment over the house.


Thats also not including all the extra fee's included with home ownership........insurance, upkeep, landscaping etc...etc..........FOR THE NEXT 30 years


What do you night owls think?
 Quoting: Anonymous Coward 34588948


$750 rent for two bedrooms? Is that in the ghetto?

Around here the cheapest I could have rented, would have been a one bedroom one bath apartment for $920 where I would also have to pay for water and electricity.

So instead I opted for a two story, 3 bedroom 3bathroom over 1600 sq ft duplex townhouse for a mortgage including taxes of $929. And also no association fees with a nice backyard.

So you tell me which is the better deal?

Back in the day you might be right, but with houses being sold short, costing less than half of what they would cost before, it would not be smart to rent instead of owning. Like someone said, rent will continue to increase especially with a lot of people now renting due to employment and credit issues, but buy a house now, and you'll be happy with the payments as well as the equity in the future.

You get a lot more property now with your money than you did before.
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 07:05 AM
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Re: Mortage vs Apartment living cost
...


You HOPE you will have equity.
...and I have always wondered how someone is able to purchase a house without being able to spell the word PAID, not payed or any other choice spelling.
Go figure?

...and there is very much an argument to be made against your case, I will leave it to you to find it and figure it out.

I am also very weary of YOUR STORY as to being able to purchase a 3 bedroom BUNGALOW, we don't EVER use the word RANCHER in Canada and to have so-called equity of only $150k after 10 years? ..do the math.
so you put down roughly 50 to 70K?
700/month with 12months to a year = approx $8400 in payments per year.... WE ALL KNOW INTEREST IS WHAT YOU ARE PAYING FOR THE FIRST 5 YEARS EASY ...
You will have no equity of $150 LMAO
Take your story elsewhere BRO
 Quoting: Anonymous Coward 31546051



I'm in Atlantic Canada. In my province 'bungalow' has become a naughty word in real estate in the past few years. All the MLS listings now phrase them as 'ranchers' and not 'bungalows'.

Obviously I'm being vague on the finances, sorry I didn't think the GLP community was really that interested in my life...

But yes, I'm paying down 20% upfront, and the cost isn't *exactly* 150k. Amortization over 25 years to keep the monthly payments as low as possible. I currently co-own another property that has 40k left on it's mortgage, once it sells I can use my half of the money to also make balloon payments up to 16k a year. If my current financial situation keeps, I can have it completely payed off in less than 15 years. If it doesn't keep, no worries because in 10 years I can refinance and get my monthly payments even lower if I need to.

All this is moot, my main point still stands.

Every month that you pay rent, you're pissing money away and making someone else richer.
Every month that you pay mortgage, you're investing in your own equity.
 Quoting: CleverMoniker 33226516


Its PAID bye, not payed Lord Tunderin Jesus!
LMAO ... good luck to you man, I wish the best.
No one will change your view until you change it yourself.
I know things down East are not easy and if it is working for you as of now, great.
But be warned of the consequences and what you hold as truth in the future.
I honestly wish the best for you my son!
...but funny thing, you don't seem to understand is YOU ARE PAYING RENT RIGHT NOW, to the bank, you don't own anything yet...
Have you looked at the first page of your Mortgage agreement?
Tell me what it refers to you as ...

TENANT ...
Go ahead and go look if you can find it, I have one sitting right here in front of me.
 Quoting: Anonymous Coward 31546051


1. You realize only Newfies talk like that, right?
2. 'change my view'? wtf are you talking about? change my view to what?
3. Yes, obviously I know I don't own something until I finish paying for it. Are you honestly saying that you think renting is better than owning? Because that kind of makes you a moron of the highest order.

Let's break this down:
You're paying roughly the same amount per month, regardless. In one scenario, after paying out $150k worth of renting, you have nothing to show for it other than the privilege of continuing to pay month by month.
In the other scenario, after paying out $150k worth of mortgage, you OWN something worth 150k, and you no longer have to pay anything but taxes.

You sir, are a moron. If correcting my spelling on a word makes you feel smarter for a few minutes, then enjoy.

Or, wait, let me guess. You're a full on GLP nutbag, and are proposing that paying a mortgage is foolish, because <insert batshit crazy paranoid theory here> will destroy society long before my mortgage is paid>
 Quoting: CleverMoniker 33226516


LOL ... first things first, I was being playful with the newfie injecture, not hostile.

Yes change your view at least to understand what is being presented to you as an argument opposite of what your OPINION and BELIEFS are.

YOU ARE NOT PAYING THE SAME MONTHLY OWNERSHIP VS RENTING, please feel free to be honest enough about how much of your payment goes to PRINCIPAL VS INTEREST.(I understand you are trying to compare just the payments themselves as being equal, but look deeper)

You also HOPE that what you own will be the value you are trying to place on it TODAY, many would call that speculation.

Remember todays little chat when it hits you in the head like a brick, just how wrong you might be.

I am not a moran, I AM NOT A MORAN! LMAO
I see the last part of your rant, without facts is to start name calling and outlandish opinions on nothing to do with the subject.

By the way, have you found a copy of your MORTGAGE agreement where it states you are only a TENANT?
I meant no hostility towards you, you obviously are having a hard time comprehending what has been offered to you in disagreement.
Take it easy my son!
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 07:12 AM
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Re: Mortage vs Apartment living cost
mortgage: 600$ monthly payment +

4,300 tax yearly/12months=358$

600+358= 958$

not too bad.....i guess


apartment living, i can get a very nice 2 bedroom w/ all utilities included for 750$

200$monthly difference lets say for the next 360 months=72000$ You'll be saving living in an apartment over the house.


Thats also not including all the extra fee's included with home ownership........insurance, upkeep, landscaping etc...etc..........FOR THE NEXT 30 years


What do you night owls think?
 Quoting: Anonymous Coward 34588948


$750 rent for two bedrooms? Is that in the ghetto?

Around here the cheapest I could have rented, would have been a one bedroom one bath apartment for $920 where I would also have to pay for water and electricity.

So instead I opted for a two story, 3 bedroom 3bathroom over 1600 sq ft duplex townhouse for a mortgage including taxes of $929. And also no association fees with a nice backyard.

So you tell me which is the better deal?

Back in the day you might be right, but with houses being sold short, costing less than half of what they would cost before, it would not be smart to rent instead of owning. Like someone said, rent will continue to increase especially with a lot of people now renting due to employment and credit issues, but buy a house now, and you'll be happy with the payments as well as the equity in the future.

You get a lot more property now with your money than you did before.
 Quoting: Anonymous Coward 11634141


Sounds Great!
...as long as you are also happy paying $210,000 or $220,00 hell maybe even $230,000 for something in the end that will be worth maybe $150,000 to $175,000 if you are lucky?

We all make personal decisions and have to live with them.
What works for one, may not work for all.
Good luck to everybody!
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 07:18 AM
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Re: Mortage vs Apartment living cost
...


You HOPE you will have equity.
...and I have always wondered how someone is able to purchase a house without being able to spell the word PAID, not payed or any other choice spelling.
Go figure?

...and there is very much an argument to be made against your case, I will leave it to you to find it and figure it out.

I am also very weary of YOUR STORY as to being able to purchase a 3 bedroom BUNGALOW, we don't EVER use the word RANCHER in Canada and to have so-called equity of only $150k after 10 years? ..do the math.
so you put down roughly 50 to 70K?
700/month with 12months to a year = approx $8400 in payments per year.... WE ALL KNOW INTEREST IS WHAT YOU ARE PAYING FOR THE FIRST 5 YEARS EASY ...
You will have no equity of $150 LMAO
Take your story elsewhere BRO
 Quoting: Anonymous Coward 31546051



I'm in Atlantic Canada. In my province 'bungalow' has become a naughty word in real estate in the past few years. All the MLS listings now phrase them as 'ranchers' and not 'bungalows'.

Obviously I'm being vague on the finances, sorry I didn't think the GLP community was really that interested in my life...

But yes, I'm paying down 20% upfront, and the cost isn't *exactly* 150k. Amortization over 25 years to keep the monthly payments as low as possible. I currently co-own another property that has 40k left on it's mortgage, once it sells I can use my half of the money to also make balloon payments up to 16k a year. If my current financial situation keeps, I can have it completely payed off in less than 15 years. If it doesn't keep, no worries because in 10 years I can refinance and get my monthly payments even lower if I need to.

All this is moot, my main point still stands.

Every month that you pay rent, you're pissing money away and making someone else richer.
Every month that you pay mortgage, you're investing in your own equity.
 Quoting: CleverMoniker 33226516


Its PAID bye, not payed Lord Tunderin Jesus!
LMAO ... good luck to you man, I wish the best.
No one will change your view until you change it yourself.
I know things down East are not easy and if it is working for you as of now, great.
But be warned of the consequences and what you hold as truth in the future.
I honestly wish the best for you my son!
...but funny thing, you don't seem to understand is YOU ARE PAYING RENT RIGHT NOW, to the bank, you don't own anything yet...
Have you looked at the first page of your Mortgage agreement?
Tell me what it refers to you as ...

TENANT ...
Go ahead and go look if you can find it, I have one sitting right here in front of me.
 Quoting: Anonymous Coward 31546051


1. You realize only Newfies talk like that, right?
2. 'change my view'? wtf are you talking about? change my view to what?
3. Yes, obviously I know I don't own something until I finish paying for it. Are you honestly saying that you think renting is better than owning? Because that kind of makes you a moron of the highest order.

Let's break this down:
You're paying roughly the same amount per month, regardless. In one scenario, after paying out $150k worth of renting, you have nothing to show for it other than the privilege of continuing to pay month by month.
In the other scenario, after paying out $150k worth of mortgage, you OWN something worth 150k, and you no longer have to pay anything but taxes.

You sir, are a moron. If correcting my spelling on a word makes you feel smarter for a few minutes, then enjoy.

Or, wait, let me guess. You're a full on GLP nutbag, and are proposing that paying a mortgage is foolish, because <insert batshit crazy paranoid theory here> will destroy society long before my mortgage is paid>
 Quoting: CleverMoniker 33226516



Before you freak out again, I needed to highlight this to show you just how wrong you are.
You said this ...

"In the other scenario, after paying out $150k worth of mortgage, you OWN something worth 150k, and you no longer have to pay anything but taxes."

This is incorrect, out of the $150,000 you paid, would you mind thinking about how much of that went to PRINCIPAL VS INTEREST, you paid $150K out of pocket, my dear friend, not all of that went against PRINCIPAL. Especially in your first 5 years of a MORTGAGE ... you hardly paid any PRINCIPAL.

You are overly biased and have tunnel vision...
very selfish and uninformed viewpoint right there.
Anonymous Coward
User ID: 28870983
United States
02/17/2013 07:23 AM
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Re: Mortage vs Apartment living cost
I used to live in a paid off house but sold it and now live in an apartment. The apartment is cheaper and more secure, at least mine is.

I worry about the communists taking all private property under Agenda 21. If they're able to confiscate the guns, I think they will.

Better to be mobile at this time. Renting works for me.
Anonymous Coward
User ID: 21681843
United States
02/17/2013 07:26 AM
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Re: Mortage vs Apartment living cost
Where the hell do you people live? My taxes are 11k a year plus mortgage, insurance, bills, etc.....

damn the east coast and west coast are ripoffs..
Anonymous Coward
User ID: 21681843
United States
02/17/2013 07:27 AM
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Re: Mortage vs Apartment living cost
I used to live in a paid off house but sold it and now live in an apartment. The apartment is cheaper and more secure, at least mine is.

I worry about the communists taking all private property under Agenda 21. If they're able to confiscate the guns, I think they will.

Better to be mobile at this time. Renting works for me.
 Quoting: Anonymous Coward 28870983


they can only take what you allow then to take....

DO NOT COMPLY
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 07:32 AM
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Re: Mortage vs Apartment living cost
Where the hell do you people live? My taxes are 11k a year plus mortgage, insurance, bills, etc.....

damn the east coast and west coast are ripoffs..
 Quoting: Anonymous Coward 21681843


You must have quite the spread then.
Those are incredibly high taxes.
Good luck man!
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 07:35 AM
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Re: Mortage vs Apartment living cost
...



I'm in Atlantic Canada. In my province 'bungalow' has become a naughty word in real estate in the past few years. All the MLS listings now phrase them as 'ranchers' and not 'bungalows'.

Obviously I'm being vague on the finances, sorry I didn't think the GLP community was really that interested in my life...

But yes, I'm paying down 20% upfront, and the cost isn't *exactly* 150k. Amortization over 25 years to keep the monthly payments as low as possible. I currently co-own another property that has 40k left on it's mortgage, once it sells I can use my half of the money to also make balloon payments up to 16k a year. If my current financial situation keeps, I can have it completely payed off in less than 15 years. If it doesn't keep, no worries because in 10 years I can refinance and get my monthly payments even lower if I need to.

All this is moot, my main point still stands.

Every month that you pay rent, you're pissing money away and making someone else richer.
Every month that you pay mortgage, you're investing in your own equity.
 Quoting: CleverMoniker 33226516


Its PAID bye, not payed Lord Tunderin Jesus!
LMAO ... good luck to you man, I wish the best.
No one will change your view until you change it yourself.
I know things down East are not easy and if it is working for you as of now, great.
But be warned of the consequences and what you hold as truth in the future.
I honestly wish the best for you my son!
...but funny thing, you don't seem to understand is YOU ARE PAYING RENT RIGHT NOW, to the bank, you don't own anything yet...
Have you looked at the first page of your Mortgage agreement?
Tell me what it refers to you as ...

TENANT ...
Go ahead and go look if you can find it, I have one sitting right here in front of me.
 Quoting: Anonymous Coward 31546051


1. You realize only Newfies talk like that, right?
2. 'change my view'? wtf are you talking about? change my view to what?
3. Yes, obviously I know I don't own something until I finish paying for it. Are you honestly saying that you think renting is better than owning? Because that kind of makes you a moron of the highest order.

Let's break this down:
You're paying roughly the same amount per month, regardless. In one scenario, after paying out $150k worth of renting, you have nothing to show for it other than the privilege of continuing to pay month by month.
In the other scenario, after paying out $150k worth of mortgage, you OWN something worth 150k, and you no longer have to pay anything but taxes.

You sir, are a moron. If correcting my spelling on a word makes you feel smarter for a few minutes, then enjoy.

Or, wait, let me guess. You're a full on GLP nutbag, and are proposing that paying a mortgage is foolish, because <insert batshit crazy paranoid theory here> will destroy society long before my mortgage is paid>
 Quoting: CleverMoniker 33226516



Before you freak out again, I needed to highlight this to show you just how wrong you are.
You said this ...

"In the other scenario, after paying out $150k worth of mortgage, you OWN something worth 150k, and you no longer have to pay anything but taxes."

This is incorrect, out of the $150,000 you paid, would you mind thinking about how much of that went to PRINCIPAL VS INTEREST, you paid $150K out of pocket, my dear friend, not all of that went against PRINCIPAL. Especially in your first 5 years of a MORTGAGE ... you hardly paid any PRINCIPAL.

You are overly biased and have tunnel vision...
very selfish and uninformed viewpoint right there.
 Quoting: Anonymous Coward 31546051



No rebuttal yet my Atlantic Friend AC31546051?
I am just getting started, there is more to the story but I didnt want to unleash everything at once.
By the way, as a RENTER, I have absolutely NO DEBT, no indebtedness to anyone, person, corporation, plastic card or ANYTHING, who owns your name right now as we speak?

Thanks for coming out though!
Anonymous Coward
User ID: 28870983
United States
02/17/2013 07:45 AM
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Re: Mortage vs Apartment living cost
I used to live in a paid off house but sold it and now live in an apartment. The apartment is cheaper and more secure, at least mine is.

I worry about the communists taking all private property under Agenda 21. If they're able to confiscate the guns, I think they will.

Better to be mobile at this time. Renting works for me.
 Quoting: Anonymous Coward 28870983


they can only take what you allow then to take....

DO NOT COMPLY
 Quoting: Anonymous Coward 21681843


Some stinking democrap introduced an AWB here in Ohio but it's unlikely to pass. Instead of signing another lease I'm paying an extra $50 a month and can leave at any time.

With the extra $50 my rent for a nice apartment and garage is $614 a month in a small semi rural town that's 99% white and amish. Very low crime. No dishwasher at that price.
Anonymous Coward
User ID: 34068008
United States
02/17/2013 07:49 AM
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Re: Mortage vs Apartment living cost
Twenty years from now the $600.00 house payment will be the same ...apartment rent will continue to rise. I bought my house 10 years ago and my mortgage is $400.00 a month....but if I were to rent it today, it would be more than double that. Plan ahead.....
 Quoting: Anonymous Coward 34572263


Twenty years from now the $600.00 house payment will be the same ...apartment rent will continue to rise. I bought my house 10 years ago and my mortgage is $400.00 a month....but if I were to rent it today, it would be more than double that. Plan ahead.....
 Quoting: Anonymous Coward 34572263


ummm..dipshit, 20 years from now your property taxes will be $5000 a month.

You,NEVER pay off a house EVER!

you foolishly believe you will actually own it free and clear of encumbrances, but the fact remains that you are truly just "renting" your mortgaged home. Read your Deed, it's even says you're renting.

Buy a house and you are trapped for years if not your entire life.
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 08:02 AM
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Re: Mortage vs Apartment living cost
Twenty years from now the $600.00 house payment will be the same ...apartment rent will continue to rise. I bought my house 10 years ago and my mortgage is $400.00 a month....but if I were to rent it today, it would be more than double that. Plan ahead.....
 Quoting: Anonymous Coward 34572263


Twenty years from now the $600.00 house payment will be the same ...apartment rent will continue to rise. I bought my house 10 years ago and my mortgage is $400.00 a month....but if I were to rent it today, it would be more than double that. Plan ahead.....
 Quoting: Anonymous Coward 34572263


ummm..dipshit, 20 years from now your property taxes will be $5000 a month.

You,NEVER pay off a house EVER!

you foolishly believe you will actually own it free and clear of encumbrances, but the fact remains that you are truly just "renting" your mortgaged home. Read your Deed, it's even says you're renting.

Buy a house and you are trapped for years if not your entire life.

 Quoting: Anonymous Coward 34068008



Many also seem to forget, that although you obtain a mortgage for 25 to 30 years, YOU CAN ONLY GET FINANCING in blocks of say 5 to 10 years at a time, then you need to go back to the bank and RE-FINANCE.

What will you do if interest rates are then 7%, 12% maybe even up to 20% as has happened in our history.

Come on homeowners, tell me?
Please be honest, we all know where you will be.
I am a former home owner, I was also in the camp of homeownership, until someone helped me see the light.

There are other things that can be done with the money saved in renting VS owning, just check out the options available and the FREEDOM you may gain!
Anonymous Coward
User ID: 31546051
Canada
02/17/2013 08:04 AM
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Re: Mortage vs Apartment living cost
OP you still here?

cruise
zenobiaphobia
While the deaf man sings along with the dumb

User ID: 34600607
United States
02/17/2013 08:05 AM

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Re: Mortage vs Apartment living cost
I used to live in a paid off house but sold it and now live in an apartment. The apartment is cheaper and more secure, at least mine is.

I worry about the communists taking all private property under Agenda 21. If they're able to confiscate the guns, I think they will.

Better to be mobile at this time. Renting works for me.
 Quoting: Anonymous Coward 28870983


Just footnoting that, since someone proposed this idea last year:

[link to www.realtytrac.com]

Robert J. Shiller, one of the Yale professors behind the Case-Shiller Index, penned a New York Times editorial this Sunday calling for “collective action” on the parts the government, banks and borrowers to fix the U.S. housing markets. Shiller suggested that local government use eminent domain laws to “take” mortgages from underwater borrowers, paying investors fair market value for them. Shiller wrote:

“But eminent domain law needn’t be restricted to real estate. It could be applied to mortgages as well. Governments could seize underwater mortgages, paying investors fair market value for them.

One way to time travel:
[link to www.gutenberg.org]
From a universe without The Walker Brothers Thread: What the Hell am I Talking About?
Gnosis 2020

User ID: 2107346
United States
02/17/2013 08:11 AM

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Re: Mortage vs Apartment living cost
A couple more things to consider..

You will be paying property taxes whether you rent or own. Ownership pays directly to government and renting just passes those taxes through to rent costs (you know that no landlord will just suck up that expense).

Same thing goes for interest expenses. Keep in mind many rental real estate loans are variable rates which means your rent will go up as rates increase, but will not go down in most cases.

In the US, you can subtract your personally paid mortgage interest and property taxes from your earned income for income tax determination. Net, this means that you get about a 40% real dollars discount on taxes & interest... Depending on your income it could be higher or lower, but this is about average all-in net savings.

Ownership is typically a non-equity building option in the first 5yrs of commitment the way banks charge interst in amortization tables. When you factor in listing costs and filing fees, there is little if any financial benefit to ownership if time expectation is under 5-10 years. There are exceptions to this to the upside of course, but there are exceptions to downside as well.

Hope this cuts the hype a bit!

rant
When everyone looks left, look right. Keep your eyes and your mind open...
Anonymous Coward
User ID: 34450439
United States
02/17/2013 08:15 AM
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Re: Mortage vs Apartment living cost
Buying is better imo. As stated, if you lock in a good low mortgage rate, your monthly payment stays the same for a decade.

I just bought at a 3.6% rate for 10 years, monthly payments including tax are $700 for a 3 bedroom rancher with a basement ready to be finished. Once the basement is finished, I can rent it out if money ever gets tight.


But the bottom line is this - when you rent, you're giving your money to someone else. When you buy, you're giving your money to yourself, in the form of equity. Once my mortgage is payed off, I'll be sitting on $150,000 worth of equity, and my living expenses will be significantly lower at a time when they need to be.


Renting = pissing away your money
Mortage = investing your money
 Quoting: CleverMoniker 33226516


True. We had a 15 year mortgage on our house (now paid off). Even though our taxes are relatively high, it costs us approximately 500/month to live in our house (not including utilities). I could not rent a 4 bedroom house in my area for less than 3,000/mo, and a 2 bedroom apt. would be no less than 1800/mo.
Anonymous Coward
User ID: 34455019
United States
02/17/2013 08:19 AM
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Re: Mortage vs Apartment living cost
I have experienced both sides of the coin. I say without hesitation to rent. I have no children and am 50 years old so I have no need of something to leave behind for anyone.
Gnosis 2020

User ID: 2107346
United States
02/17/2013 08:22 AM

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Re: Mortage vs Apartment living cost
A couple more things to consider..

You will be paying property taxes whether you rent or own. Ownership pays directly to government and renting just passes those taxes through to rent costs (you know that no landlord will just suck up that expense).

Same thing goes for interest expenses. Keep in mind many rental real estate loans are variable rates which means your rent will go up as rates increase, but will not go down in most cases.

In the US, you can subtract your personally paid mortgage interest and property taxes from your earned income for income tax determination. Net, this means that you get about a 40% real dollars discount on taxes & interest... Depending on your income it could be higher or lower, but this is about average all-in net savings.

Ownership is typically a non-equity building option in the first 5yrs of commitment the way banks charge interst in amortization tables. When you factor in listing costs and filing fees, there is little if any financial benefit to ownership if time expectation is under 5-10 years. There are exceptions to this to the upside of course, but there are exceptions to downside as well.

Hope this cuts the hype a bit!

rant
 Quoting: Gnosis 2020


One more thing is inflation. If rent increases average a paltry 3% annually, your payments will be double in 24 years. Assume the same increase in taxes and upkeep, and your real ownership costs will increase only about 33% in the same period assuming a fixed rate loan. This is because planners assume that 1/3 of home owners budget expenses should go toward upkeep, taxes, fees, etc and only 2/3 towards principal and interest.

The longer you keep your owned residence, the better the financial numbers work toward ownership.

Of course this is all subject to government impacts which can throw off all of this!
When everyone looks left, look right. Keep your eyes and your mind open...
goodgoddess

User ID: 34463522
United States
02/17/2013 08:30 AM
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Re: Mortage vs Apartment living cost
Apply for a Habitat House, if you qualify you get a zero interest loan. My 3 bedroom 2 bath house costs me $400.00 a month INCLUDING property tax and insurance. There's a catch though. Getting all your equity before it's paid off is not possible. after 15 years of a 30 year loan I am only eligible for 50% of the equity if I sell it! Hence the term "golden handcuffs", I couldn't find a comparable rental for that price.
Apocaloptimst ~ Know's that the worlds gone to shit but thinks it will turn out alright anyway.
Anonymous Coward
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United Kingdom
02/17/2013 08:45 AM
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Re: Mortage vs Apartment living cost



Unless you have enough cash in the bank to buy outright or are a landlord renting out your property to a tenant then buying does not make any sense whatsoever.
scimitar

User ID: 31201571
United States
02/17/2013 08:51 AM

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Re: Mortage vs Apartment living cost
I now live on 6 acres and it's a lot of work and not cheap, but I've lived in apartments before and I hate it compared to a house. I can't say that there aren't good reasons to live in an apartment.

Certainly some feel better with less resposibility and or spending less, but for me a greater sense(beacause none of us are really free) of freedom and a bit more room allows me to get closer to contentment.

Happiness is where you find it.
One Truth.... many realities
Anonymous Coward
User ID: 17996389
United States
02/17/2013 09:24 AM
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Re: Mortage vs Apartment living cost
I live just a few miles outside Manhattan.

- For a 2 bedroom, 2 bathroom apartment rent paid is $2600/month and i have paid out around $160K in rent over the last five years.

- I can afford to rent rather than buy, and have had the flexibility of moving whenever I need to.

- Many friends lost jobs, and couldn't move to a different part of the country for work because they were stuck with a house they could not sell and could not afford two monthly rents.

- I prefer to retain my flexibility.

- Also in the current and foreseeable economy, I refuse to take $200k from my account and use it as a deposit to buy a house, I will hold onto that thank you just in case I need it.

- When I die, (trust funds none withstanding) I am not happy about the fact that some 50% of what I own will go to government in inheritance taxes.


- Everything has changed in the last 20 years or so with regards the economy and speculation, but especially since about 2007 onwards.

I don't believe that the formulas used for calculating future house prices/values can be trusted. I don't think the government or the banks or anyone else with a hand in the economy of the can be trusted anymore.

- I have no intention of retiring in the US or EU for that matter (I am originally from UK).

My retirement will be spent in Asia or maybe South America where the cost of living is low and I can retire comfortably in a small rental cottage near the sea.
Anonymous Coward
User ID: 17996389
United States
02/17/2013 09:27 AM
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Re: Mortage vs Apartment living cost
I live just a few miles outside Manhattan.

- For a 2 bedroom, 2 bathroom apartment rent paid is $2600/month and i have paid out around $160K in rent over the last five years.

- I can afford to rent rather than buy, and have had the flexibility of moving whenever I need to.

- Many friends lost jobs, and couldn't move to a different part of the country for work because they were stuck with a house they could not sell and could not afford two monthly rents.

- I prefer to retain my flexibility.

- Also in the current and foreseeable economy, I refuse to take $200k from my account and use it as a deposit to buy a house, I will hold onto that thank you just in case I need it.

- When I die, (trust funds none withstanding) I am not happy about the fact that some 50% of what I own will go to government in inheritance taxes.


- Everything has changed in the last 20 years or so with regards the economy and speculation, but especially since about 2007 onwards.

I don't believe that the formulas used for calculating future house prices/values can be trusted. I don't think the government or the banks or anyone else with a hand in the economy of the can be trusted anymore.

- I have no intention of retiring in the US or EU for that matter (I am originally from UK).

My retirement will be spent in Asia or maybe South America where the cost of living is low and I can retire comfortably in a small rental cottage near the sea.
 Quoting: Anonymous Coward 17996389



I should add also that here in the USA, if you get old and get dementia or similar and need to spend your twilight years in an old peoples home that your house will be viewed as equity and sold to pay extortionate monthly care home costs until all of your equity is depleted, and then good luck finding a care home on medicare near your family.

(I have insurance to cover my old age infirmities, but MANy do not!)
Ontheverge

User ID: 6863083
United States
02/17/2013 09:28 AM

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Re: Mortage vs Apartment living cost
You do not have 4th Amendment Rights in a rental.
Anonymous Coward
User ID: 21949606
United States
02/17/2013 10:00 AM
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Re: Mortage vs Apartment living cost
OP you still here?

cruise
 Quoting: Anonymous Coward 31546051


Im still here baby, no sleep for me 2day
Anonymous Coward
User ID: 34353228
United States
02/17/2013 10:04 AM
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Re: Mortage vs Apartment living cost
4th amendment rights seems to be dwindling ...
i live in maine. "bought" a house eleven years ago.
it has been nice being able to raise my kids here but truly it is sucking the economic life out of me. now i am here with only one child still living with me.
i hate to just go because i have the romantic idea that this will stay our family home, you know for generations and such. also i hate to go because i am so opposed to agenda 21 and of course people having their own homes and property doesn't fit into that agenda well.
so i am torn. principle and ideals or practical survival here. i will be paying on this mortgage for the rest of my life... hm?
daisy
User ID: 34495736
United States
02/17/2013 10:06 AM
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Re: Mortage vs Apartment living cost
remember... he who has the smallest mortgage wins.
Anonymous Coward
User ID: 21949606
United States
02/17/2013 10:10 AM
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Re: Mortage vs Apartment living cost
Its the property taxes that take the fun out of home ownership, I pay 5k a year. I have no kids but ~80% of the property taxes goes for "schooling". With the type of money the schools get in the us they should be spitting out a higher class of education then we currently are.

But im sure those property taxes dont always get to where there suppose to go.

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