How to Determine Whether You Should Rent Or Buy

  • Posted by a hidden member.
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    Jun 19, 2015 4:27 AM GMT
    NYT: The choice between buying a home and renting one is among the biggest financial decisions that many adults make. But the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal. To help you answer this question, our calculator takes the most important costs associated with buying a house and computes the equivalent monthly rent.

    http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?
  • mar0302

    Posts: 273

    Jun 19, 2015 4:41 AM GMT
    Good tool.. It's a shame there's not a UK version. I'm buying a flat now that will end up costing me about $1,500 USD more than renting. I think in the long run it will be worth it, but it's painful to think of paying so much more for something that's not really an improvement over where I rent now.
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    Jun 19, 2015 1:55 PM GMT
    mar0302 said... a UK version. I'm buying a flat now that will end up costing me about $1,500 USD more than renting...
    most american peeps buy because there are tax benefits in owning. Dont know what benefits there are for UK citizens. I guess if your mortgage payment is fixed you are sheltered from rent increases. You are sheltered from increasing cost of housing (as the cost of drywall & 2x4's increase).

    in america the time to buy was 2010.
    if your renting in a market that is still affordable go for it.
    keep in mind you cant just leave when the lease is up so your employment and relationship status needs to be stable.

    bargains do exist; (2br 2ba 950ftsq $175,000):

    i REALLY like this house in North Denver:
    http://www.zillow.com/homes/for_sale/Denver-CO-80216/13301979_zpid/93292_rid/39.788638,-104.931214,39.770135,-104.972284_rect/14_zm/1_fr/?view=map

    the good:
    -its next to a major lite rail station or two.
    -already has a nice fenced corner city lot with 2 car garage. The garage is off a back alley so nice access
    -buy lo, sell high, this area will increase in value as the state plans to invest in major construction projects near by.
    -brick construction is possible lo maintenance.
    -this section of Denver has very low low property tax, at least for now.
    -the house is historic Denver 1890's and from the outside i have see worse, looks mechanically stable with good paint.
    -the house is very typical to urban Denver.

    the bad:
    -area is kinda hoody now.
    -its an old historic house (1890) so you have to be extra lesbian handy with a big homoDepot account. If you dont know how to do stuff no big, most of it is on a youtube video. But you have to want to do it tho and constant construction gets old fast.
    -the area dosnt look all that nice right now and so the location represents a risk how the property will appreciate
    -corner lot; one street has a fair amount of traffic. It is next to a major freeway so there will be crime and its america so shootings too. You have to know how to handle living in an urban setting. A lot of guys grew up in the suburbs and a little different buying your first house in the hood.
    -very likely the electrical, plumbing are updated. The question is if its done to code enough that it will not burn down.
    -you need to get a structural engineering firm in to inspect this house before you buy. They need to be absolutely skilled in several aspects mechanical, heating, roofing, video scope the sewer line, look for lead plumbing, verify no exposed asbestos (especially in the areas you intend to work on).
    -1890's brick and mortar was not meant to last 200 years. You may need to re apply mortar, stucco, or paint or coat the brick to stabilize the structure.
  • FRE0

    Posts: 4864

    Jun 20, 2015 7:12 PM GMT
    The article mistakenly assumes that money is the only consideration. There are other important things to consider when deciding whether to rent or buy.
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    Jun 20, 2015 8:05 PM GMT
    FRE0 saidThe article mistakenly assumes that money is the only consideration. There are other important things to consider when deciding whether to rent or buy.


    I like the stability of owning my home (condo). It's paid for! I don't have to worry about rent increases (definitely going up in PS). But my HOA fees will definitely go up. It doesn't matter if the value goes up (it has) or down anymore (it might).

    When I bought it I was unemployed. Renting an apartment, background checks, etc., would have been problematic. I hate been scrutinized like that, just to give my money away on rent.