We rent (and have done so for the past 5 years) and love it. The pros - it allows us to have a nice sized apartment with lots of great perks, such as the pool, gym, and walking trail. It also makes things easy if we need to move for whatever reason, as we did last summer to get closer to my boyfriends new place of work. Any problems are quickly fixed with a phone call, and we are still able to paint and add personal touches to the walls. The cons - not gaining equity in the property. Having spent over $50,000 in the last 5 years on rent with little to show is frustrating to think of, but not enough for me to buy right now. Also, pet fees are ridiculous! A down payment plus $30 per month per pet. We have 2 cats and this has always annoyed me.
Great article and some very valuable tips to help people save more and spend less!
One more I would add to the list is "Coupon / Deal Sites" (we all know them) ... With all of these deals, did you really save money over the last year? Or, is it possible that you spent more than you normally would have by eating out at more restaurants (the deals never allow alcohol and typically cap the amount per person), more at the grocery store (you buy stuff you really didn’t need), and more at the department stores (picking up extra items until your closest is in the brink of explosion) than you had expected to you in your annual budget. Has couponing made us spend more in a given year even though the amount per item was less than normal price?
I've been a homeowner for four years now. The cons? Having a big mortgage payment and not having the freedom to walk away as easily as you can when you rent. If the market and my neighborhood were better I would say a pro would be the fact that the house is an asset but, right now, mine isn't worth much, unfortunately.
We own; it's definitely more expensive--we rented while saving so we'd have 20% down-payment for our house. Our quality of life is significantly improved in our house--we have a lot more space, we can entertain friends more easily, we like the freedom to make repairs and changes on our own. Our mortgage (incl taxes) is slightly less than our rent--so how can it be so much more expensive? Everything we disliked in our apartment was ultimately someone elses--there was nothing to do about it! So we put up with cracked vinyl flooring in the kitchen, wood floors that sometimes gave splinters, ancient windows that let in a lot of cold air. Conversely, with everything we don't like in our own house, we can choose to fix it--and a lot of times there are truly optional things where it might make more sense to delay. I do feel like our house is a bit of an indulgence for us; we only own one car, we don't take fancy vacations, etc. Right now we're OK with where we are, but I think that in the long-run, I'd like to be putting less money into the house--particularly since the bank is still the majority owner!
Thanks for pointing that out! I totally forgot to mention that you should put a bit of masking tape over the hole for some of these projects. We definitely wouldn't want jello seeping out from the bottom! ;)
Great article. I wanted to find out once and for all why I crave eggs when I have a hangover. It just seemed so odd to me because when my tummy is hurting, the smell of it can make it unhappy as well. But as soon as the tummy pains are gone, I go right for the eggs...scrambled, over easy, hard boiled (great for on the go since Safeway and Starbucks has hard boiled eggs) - I just can't do them raw! Thank you for answering my inquiry!
We own our home in Denver. We paid 30% down and plan on renting it once we move. We did the same with our past home in Los Angeles and we're more than covering the mortgage. We like this model.
We own. I would find it very difficult to go back to renting. The cons of owning are that you have to do your own upkeep and maintenance to the residence and land. But for me there are far more benefits: * you can decide how the land/house should look * you can paint rooms whenever and whatever color you want * you still have to deal with neighbors, but they are further away - not just above, below or directly next to you *we can have a garden * we can have a clothesline (as long as covenants allow for it). We even have chickens!
I am a home-owner, soon to sell. I am hoping that my sale price will show this to have been a wise decision, compared to renting, however I am not too sure this will be the case. Fingers crossed.
PROs (reasons I chose to purchase): I can decorate as I like. I can keep my furry friends without added monthly costs. In a good market, I am building equity.
CONs : To sell, I must remove my decorations and spackle accordingly. My furry friends also create additional costs when selling. In a bad market, I am losing equity.
100 financing? Seriously? That makes no sense at all. The mortgage tax break is not that beneficial, and congress can always discard it, in fact, its likely they will seriously curtail it in the next few years.
My parents bought our single family home for $23,000 a year and a half ago, and we are paying them back the money for it. We had to put a new water heater in it, and had to put a couple thousand dollars worth of work done on it, but otherwise it is in good shape. We feel very blessed that my parents were able and willing to do this for us, and are very grateful to them. We have 2 dogs and 10 cats, so renting is not an option for us.
I own the home I've lived in for 30 years where I raised 2 my sons. After losing my husband last year and having to pay for many home repairs in my aging home, I'm considering downsizing to a rental.
I'm a renter and completely happy. I have a great apartment, in a great town, and the management is the best. When I retire, I plan to buy a small home in a retirement community, where prices are much cheaper. I'll also have much more time to take care of a house.
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We rent (and have done so for the past 5 years) and love it. The pros - it allows us to have a nice sized apartment with lots of great perks, such as the pool, gym, and walking trail. It also makes things easy if we need to move for whatever reason, as we did last summer to get closer to my boyfriends new place of work. Any problems are quickly fixed with a phone call, and we are still able to paint and add personal touches to the walls. The cons - not gaining equity in the property. Having spent over $50,000 in the last 5 years on rent with little to show is frustrating to think of, but not enough for me to buy right now. Also, pet fees are ridiculous! A down payment plus $30 per month per pet. We have 2 cats and this has always annoyed me.
Great article and some very valuable tips to help people save more and spend less!
One more I would add to the list is "Coupon / Deal Sites" (we all know them) ... With all of these deals, did you really save money over the last year? Or, is it possible that you spent more than you normally would have by eating out at more restaurants (the deals never allow alcohol and typically cap the amount per person), more at the grocery store (you buy stuff you really didn’t need), and more at the department stores (picking up extra items until your closest is in the brink of explosion) than you had expected to you in your annual budget. Has couponing made us spend more in a given year even though the amount per item was less than normal price?
Like you on FB.
I've been a homeowner for four years now. The cons? Having a big mortgage payment and not having the freedom to walk away as easily as you can when you rent. If the market and my neighborhood were better I would say a pro would be the fact that the house is an asset but, right now, mine isn't worth much, unfortunately.
We own; it's definitely more expensive--we rented while saving so we'd have 20% down-payment for our house. Our quality of life is significantly improved in our house--we have a lot more space, we can entertain friends more easily, we like the freedom to make repairs and changes on our own. Our mortgage (incl taxes) is slightly less than our rent--so how can it be so much more expensive? Everything we disliked in our apartment was ultimately someone elses--there was nothing to do about it! So we put up with cracked vinyl flooring in the kitchen, wood floors that sometimes gave splinters, ancient windows that let in a lot of cold air. Conversely, with everything we don't like in our own house, we can choose to fix it--and a lot of times there are truly optional things where it might make more sense to delay. I do feel like our house is a bit of an indulgence for us; we only own one car, we don't take fancy vacations, etc. Right now we're OK with where we are, but I think that in the long-run, I'd like to be putting less money into the house--particularly since the bank is still the majority owner!
I own my home!
Thanks for pointing that out! I totally forgot to mention that you should put a bit of masking tape over the hole for some of these projects. We definitely wouldn't want jello seeping out from the bottom! ;)
We own our home. Bought and paid for:its only a trailer, but it sits on almost 3 acres. Its nice not having to put up with neighbors.
Great article. I wanted to find out once and for all why I crave eggs when I have a hangover. It just seemed so odd to me because when my tummy is hurting, the smell of it can make it unhappy as well. But as soon as the tummy pains are gone, I go right for the eggs...scrambled, over easy, hard boiled (great for on the go since Safeway and Starbucks has hard boiled eggs) - I just can't do them raw! Thank you for answering my inquiry!
We own our home in Denver. We paid 30% down and plan on renting it once we move. We did the same with our past home in Los Angeles and we're more than covering the mortgage. We like this model.
We own. I would find it very difficult to go back to renting. The cons of owning are that you have to do your own upkeep and maintenance to the residence and land. But for me there are far more benefits: * you can decide how the land/house should look * you can paint rooms whenever and whatever color you want * you still have to deal with neighbors, but they are further away - not just above, below or directly next to you *we can have a garden * we can have a clothesline (as long as covenants allow for it). We even have chickens!
I am a home-owner, soon to sell. I am hoping that my sale price will show this to have been a wise decision, compared to renting, however I am not too sure this will be the case. Fingers crossed.
PROs (reasons I chose to purchase): I can decorate as I like. I can keep my furry friends without added monthly costs. In a good market, I am building equity.
CONs : To sell, I must remove my decorations and spackle accordingly. My furry friends also create additional costs when selling. In a bad market, I am losing equity.
Wish me luck!
we own our house and have for many years.
100 financing? Seriously? That makes no sense at all. The mortgage tax break is not that beneficial, and congress can always discard it, in fact, its likely they will seriously curtail it in the next few years.
My parents bought our single family home for $23,000 a year and a half ago, and we are paying them back the money for it. We had to put a new water heater in it, and had to put a couple thousand dollars worth of work done on it, but otherwise it is in good shape. We feel very blessed that my parents were able and willing to do this for us, and are very grateful to them. We have 2 dogs and 10 cats, so renting is not an option for us.
awesome post, you are very right. this country is crazy with debt, we are programmed to think it is acceptable.
I own the home I've lived in for 30 years where I raised 2 my sons. After losing my husband last year and having to pay for many home repairs in my aging home, I'm considering downsizing to a rental.
We own our condo - con is having to take care of maintenance and repairs but the pro is feeling stable.
Own. If anything breaks it's on me & my family, not the landlord.
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I liked you on Facebook.
I rent because I move around a lot so it doesn't make sense for me to buy.
I liked you and your post on Facebook.
I'm a renter and completely happy. I have a great apartment, in a great town, and the management is the best. When I retire, I plan to buy a small home in a retirement community, where prices are much cheaper. I'll also have much more time to take care of a house.