Home Sweet Home: Thoughts on Renting Vs. Owning, and a House Vs. an Apartment?

  • Christian Chat is a moderated online Christian community allowing Christians around the world to fellowship with each other in real time chat via webcam, voice, and text, with the Christian Chat app. You can also start or participate in a Bible-based discussion here in the Christian Chat Forums, where members can also share with each other their own videos, pictures, or favorite Christian music.

    If you are a Christian and need encouragement and fellowship, we're here for you! If you are not a Christian but interested in knowing more about Jesus our Lord, you're also welcome! Want to know what the Bible says, and how you can apply it to your life? Join us!

    To make new Christian friends now around the world, click here to join Christian Chat.
Solemateleft

Solemateleft

Honor, Courage, Commitment
#41
Jun 25, 2017
14,042
4,097
113
#41
cinder said:
That's why I need to buy a house now, so my dad is around to help me fix stuff when I don't know how. Actually renting, I learned the value of hair catchers in the bathtub drain. Have to admit it was nice to not have to foot the bill for that ( not break the bank expensive, but certainly a stupid newbie type of thing).

That's also why I'm greatful for the internet, it can teach me how to fix most anything.
Click to expand...
Fathers and the internet are awesome when it comes to picking up handy-tips for quick fixes around a house. Another good source, regardless of whether you are a single male or female or your friendly neighbors... I learn a lot of does and don'ts merely by have neighborly conversations with some of my more seasoned home owner neighbors... Often times, they will even offer to help...
Another relatively affordable approach is to have a friendly and trustworthy (cheap) handyman to do the things that even dad wouldn't try on his own...
 
Solemateleft

Solemateleft

Honor, Courage, Commitment
#42
Jun 25, 2017
14,042
4,097
113
#42
seoulsearch said:
Thanks for pointing this out, Deade.

This is another important consideration I've been observing with family and friends. A person might think they have the security of being able to sell their house at any time and be able to use that money for whatever their next step might be, but if the house isn't selling, it can easily turn into double payments for everything.

I had some family members whose house didn't sell for over a year and friends who are still trying to sell former houses after a couple of years, and boy, would I hate to be in that situation.
Click to expand...
I agree 💯 nobody can afford that kinda stress...
The way I managed that stress is based upon timing... Meaning do not try to force a sell and take a loss unless there are absolutely no alternatives...
- timing is everything
- my strategy is to never allow a house to go empty for more than one month...
- strive to flip or rent the home during peak season, typically end of school year, early summer...
- know the value of your home relative to your location...
- have a decision time line to transition from selling and settle for renting...
- begin to prep and advertise home months before your known desired transition date...
- Chose a very competitive selling price, meaning do not over price it, pick a reasonable price that beats your local competition that allows you to make out okay. Don't get greedy and be in a rush at the same time...
- Good, Fast, or Cheap... Pick Two, you won't get the Third.
- if you have no nibbles at that time, and are closing in to 1-2 months to your decided departure, drop the price to your break even cost and adjust advertise for sale or rent...
- your fail safe is to choose the minimum rental cost that both covers the mortgage and is competitive for the local rental market...
- at this point you are free to take a deep breath and wait for the market to suit your needs to begin to advertise it for sale again.
- broiler plate rental agreements are available online and not as difficult as they might seem.
- in almost 25 years of renting out my homes the longest I've ever had a home empty was one month on two separate occasions.
- I dumped one home for a break even cost only because my soon to be Ex demanded it. Was to much to ask of her to help co-manage two rental properties at the same time from out of state...
- the two homes I own now are worth over $100-$150k more than I paid for them...
- the home equity line of credit have been a reliable blessing at times
- the ability to refinance and withdrawal equity from the homes has enable home improvements, to consolidate and payoff other debts...
- lots of perks and benefits, but it takes a willful commitment...
 
H

Hamarr

Guest
#43
#43
Pipp said:
I definitely feel like renting has its plus side .. especially as a single female. Not causing we can't work on our own houses, but if something bigger than us happens, we aren't left responsible to fix it.
Click to expand...
Yeah. Having maintenance has been great for repairs. My dishwasher quit draining recently. I logged a ticket on their property management site and it was good to go by the time I got home from work that day.

I did take a look at it at first, but it wasn’t going to be as easy of a fix as I thought.
 
Solemateleft

Solemateleft

Honor, Courage, Commitment
#44
Jun 25, 2017
14,042
4,097
113
#44
Solemateleft said:
I agree 💯 nobody can afford that kinda stress...
The way I managed that stress is based upon timing... Meaning do not try to force a sell and take a loss unless there are absolutely no alternatives...
- timing is everything
- my strategy is to never allow a house to go empty for more than one month...
- strive to flip or rent the home during peak season, typically end of school year, early summer...
- know the value of your home relative to your location...
- have a decision time line to transition from selling and settle for renting...
- begin to prep and advertise home months before your known desired transition date...
- Chose a very competitive selling price, meaning do not over price it, pick a reasonable price that beats your local competition that allows you to make out okay. Don't get greedy and be in a rush at the same time...
- Good, Fast, or Cheap... Pick Two, you won't get the Third.
- if you have no nibbles at that time, and are closing in to 1-2 months to your decided departure, drop the price to your break even cost and adjust advertise for sale or rent...
- your fail safe is to choose the minimum rental cost that both covers the mortgage and is competitive for the local rental market...
- at this point you are free to take a deep breath and wait for the market to suit your needs to begin to advertise it for sale again.
- broiler plate rental agreements are available online and not as difficult as they might seem.
- in almost 25 years of renting out my homes the longest I've ever had a home empty was one month on two separate occasions.
- I dumped one home for a break even cost only because my soon to be Ex demanded it. Was to much to ask of her to help co-manage two rental properties at the same time from out of state...
- the two homes I own now are worth over $100-$150k more than I paid for them...
- the home equity line of credit have been a reliable blessing at times
- the ability to refinance and withdrawal equity from the homes has enable home improvements, to consolidate and payoff other debts...
- lots of perks and benefits, but it takes a willful commitment...
Click to expand...
Also, another perk with using time and patience to your advantage with home ownership:
- in addition the advantages mentioned (if you are willing to step out into the Home Rental option) by mitigating risk of having an empty home - I believe that the rent only covered about 95% of the mortgage initially...
- I was willing to accept that initial out of pocket cost, knowing that my long term plan was long-term investment and that every year I had the option to increase the rent ($25 is reasonable) when it came time to renew the lease...
- over the course of time and patience - the rent money currently pays almost $250 above the mortgage. I try to put that extra money away to cover potential maintenance...
- Having lived in the home/area - I have a go to Handy-Man as needed, but rarely needed... The renters have the option to be responsible for lawn etc or pay additional rent as compensation...
 
H

Hungry

Banned
#45
Nov 26, 2012
3,095
1,050
113
#45
I love owning. I wanted another bathroom, I put one in. I wanted a swimming pool, I put one in. When you rent, if you want a change, you either lose the investment or have to move.
 
melita916

melita916

Senior Member
#46
Aug 12, 2011
10,467
2,704
113
#46
one tip our realtor gave us was adding a 13th payment to the mortgage each year. he said to take the monthly payment and divide it among the 12 months, and add it to the payment each month. he said it can do wonders in the long run. that's our plan when we get a house, Lord willing. :)
 
W

Wild

Guest
#47
#47
Owning a home is much better because you are putting money into something that hopefully will grow in value. There is more responsibility but also greater freedom and privacy. It feels good to be the king of your castle rather than throwing money away every month.
 
Solemateleft

Solemateleft

Honor, Courage, Commitment
#48
Jun 25, 2017
14,042
4,097
113
#48
I think a couple/few of us mentioned the additional home-owner benefit/option to rent out a room to help out financially.
Now take that option on top of the benefits that I have mentioned as a Home-Renter and take it to the next level as a real profitable investment...
With kids of my own in college and helping to pay their rent and on-campus resident costs - I have come to realize the benefit of the those who own homes near college campuses and rent out individual rooms to several students at a time... Talk about taking candy from babes - those folks are making a killing in profit - as those rooms are all over priced...
Deliberately competitive/skewed based upon the cost of on campus living...
As the Three Golden Rules in Real Estate are:
1 - Location
2 - Location
3 - Location
 
Oncefallen

Oncefallen

Idiot in Chief
Staff member
#49
Jan 15, 2011
6,070
3,459
113
#49
I would recommend that anyone with the means buy rather than rent unless you are not planning on being in the area for more than a year or two. In those circumstances you are more likely to end up upside down in a purchase since closing costs, realtor fees, etc wouldn't have been offset by property value increase yet. Even for those who are concerned about property maintenance issues a condo or town home gives the benefits of ownership but the HOA fees cover grounds and exterior maintenance.

Of course there are no guarantees about purchasing because the economy could crash and cause your equity to disappear over night but the odds are in your favor of coming out ahead over the long run. Take for example my parents, the house that I grew up in was purchased when I was 6 (mid 70's) for roughly $42,000. That home was sold in the late 90's for around $225,000 and the capital gains were rolled into the home that they still own (purchased for $170,000) that has a current value of roughly $360,000. They plan on "downsizing" sometime in the near future which will leave them with a large chunk of cash to help fund their continuing retirement. If they had been renting all those years they would have a big fat zero.

The biggest mistakes that people make when purchasing a home IMO are :

stretching themselves too thin financially because some bank was willing to finance them for more than they really could afford leaving them with nothing left over to cover eventual maintenance costs

not putting away money to cover the inevitable maintenance costs.

People don't stop to think that a hot water heater can cost upwards of $500 to replace, a furnace $2,000, a roof $5,000. This is why financial experts across the board recommend maintaining an emergency fund of at least a couple months income to cover these sorts of surprises.
 
K

Kyless123

Member
#50
Dec 2, 2018
65
37
18
#50
Owning woud be better long term. Look at this side of things.
1 am I going to live in a certain spot for long term or sort term like a 3 year window.
When my wife and I met we rented for a couple years then we bought a house with One child at that time and just one income of about 40,000 a year. we just sold that house and bought another one for twice as much with 3 kids and about 50,000 a year. Maybe a little more. I left that job now and got a little better one. Just because your single doesn't mean you can't own if you want to. You can. You just have to talk to banks Probably 5 or so and see what you can get. There is a first time home buyer loan out there to help first time buyers
 
Lynx

Lynx

Folksy yet erudite
#51
Aug 13, 2014
27,718
9,649
113
#51
Oncefallen said:
The biggest mistakes that people make when purchasing a home IMO are :

stretching themselves too thin financially because some bank was willing to finance them for more than they really could afford leaving them with nothing left over to cover eventual maintenance costs

not putting away money to cover the inevitable maintenance costs.

People don't stop to think that a hot water heater can cost upwards of $500 to replace, a furnace $2,000, a roof $5,000. This is why financial experts across the board recommend maintaining an emergency fund of at least a couple months income to cover these sorts of surprises.
Click to expand...
I don't own a home myself, but I have to agree with you there. My best friend said he and his wife chunk $100 per month in a separate bank account to deal with home maintenance. He also said they usually wind up using it before the year is out.
 
You must log in or register to reply here.