Renting vs Buying a House - Can Someone Explain The Benefits/Pros and Cons of Each?

[Jimmy Two-Times™]

I saw this diagram but it seems too over simplified. Can someone give their own true opinion on the matter. Lets say I have enough money to buy a house outright but I wanted to learn more about renting instead, so what would you do in that instance?

I'm finally ready to stop being a bum and scrounging off mumzy!!

HELP MEH, BREHS!

 

[Poetical Poltergeist]

You can pay someone else's mortgage or you can pay your own.

 

[Hahahaha]

You can pay someone else's mortgage or you can pay your own.

That's an extremely simple way of looking at things.

I have owned and rented and prefer renting. Renting when the market is super hot makes sense if you can time a dip in the market and buy below value.

 

[Jimmy Two-Times™]

Man, I just wanna be relatively successful and help my entire immediate family out too. I've been looking at and trying to understand the jargon involved with stocks, ISA accounts and various ways to legally avoid tax but I think I'm about to have a brain aneurysm at this rate.

You can pay someone else's mortgage or you can pay your own.

Nicely put, but a little too straight forward for me.

But, that is a nice way to remind myself.

I'm thinking of saving up for some more years then buying outright but renting that property out whilst living at home rent free with my parents and just help out when need be (their mortgage is paid off).

That's an extremely simple way of looking at things.

I have owned and rented and prefer renting. Renting when the market is super hot makes sense if you can time a dip in the market and buy below value.

What does that actually mean exactly?

So, when the economy dips the value of most properties will decrease too and so property rent estimations will also in turn drastically follow suit? I thought there was a limit on how long you can rent out a property so that reduced value for the rent won't last forever. So really the only difference is multiplying the rent value (from my research can be raised to any amount when the economy sorts itself out) by the cost of the home/mortgage over your expected lifetime.

This shyt is so mindboggingly simple but weaved into literally jargon gibberish. Why can't someone just do a step by step process of it all.

Forgive me for my ignorance but I'm new to this and this type of stuff has only peaked my interest this week since I'm a poor c*nt looking to get a leg up in this shytty world. Oh, and my family think very, very, very, very, very, very, very, very, very, very, very, lowly of me.

They keep shytting on me but I'll prove them wrong and savour the day when they ask *me for money.

 

[NkrumahWasRight Is Wrong]

I was looking to buy but it's such a sellers market that I just applied to rent instead

 

[The Knee Grow]

Ive rented a couple of years and i have been a homeowner for 10. In theory you buy the house and then sell it at the for the same $ or maybe more $. Or you could rent it out and have somebody pay your mortgage for you. If i bought my house for 300k and sell it for 330k then theoretically i am going to be reimbursed for the the past 10 years of my living expenses. The negatives of owning are the you responsible for the maintenance of the house which also includes upgrade (which can be a lot but most of the time is minimal if you budget). The house is yours though and you can do it whatever you want (unless you have an hoa). When I first bought my house I looked at it as just an apartment with more space but over the years ive come to appreciate it as my own. It is a huge commitment and you have to be sure you like the house and the neighborhood your in because you cant just leave after your lease is up

 

[The Knee Grow]

I was looking to buy but it's such a sellers market that I just applied to rent instead

I would advise to rent first just so you can experience that check coming out of your account for the next 30 years

 

[NkrumahWasRight Is Wrong]

I would advise to rent first just so you can experience that check coming out of your account for the next 30 years

 

[Jimmy Two-Times™]

Ive rented a couple of years and i have been a homeowner for 10. In theory you buy the house and then sell it at the for the same $ or maybe more $. Or you could rent it out and have somebody pay your mortgage for you. If i bought my house for 300k and sell it for 330k then theoretically i am going to be reimbursed for the the past 10 years of my living expenses. The negatives of owning are the you responsible for the maintenance of the house which also includes upgrade (which can be a lot but most of the time is minimal if you budget). The house is yours though and you can do it whatever you want (unless you have an hoa). When I first bought my house I looked at it as just an apartment with more space but over the years ive come to appreciate it as my own. It is a huge commitment and you have to be sure you like the house and the neighborhood your in because you cant just leave after your lease is up

Now that was very clear and insightful.

I had to Google some of this things you said but I completely agree.

As a Londoner the average 2-3 bedroom house is around £500,000 which is why I'd have to rent low or stay home and live rent free and help out where possible which is easier and fortunately possible for me .

The question I'd like to ask you is what type of lease do you have on your home owned property? Because, obviously we will not live for past 100-999+ years from the age when when we initially brought the property for whatever the freehold costs so which is more worth it to you?

 

[Poetical Poltergeist]

I don't think theirs many other feelings better than knowing you own your own home. I appreciate my house more than ever.

 

[88m3]

I rent and I own



Where I rent and live full time I would own but there isn't enough supply and everything is overpriced and has been for several years. Everything is highly dependent on whatever the local real estate market is. To me the biggest factor I think people should keep in mind is commitment because if you have to move and sell the odds of dinging your investment are pretty high. One of the better rent or own calculators broke out the cost/investment over 10 years. The other thing which is hard to gauge and really quantify is where in the market is in the cycle you are and your individual roi think proximity to job, prestige, and enjoyment etc.

Overall good graphic

 

[Jimmy Two-Times™]

I rent and I own



Where I rent and live full time I would own but there isn't enough supply and everything is overpriced and has been for several years. Everything is highly dependent on whatever the local real estate market is. To me the biggest factor I think people should keep in mind is commitment because if you have to move and sell the odds of dinging your investment are pretty high. One of the better rent or own calculators broke out the cost/investment over 10 years. The other thing which is hard to gauge and really quantify is where in the market is in the cycle you are and your individual roi think proximity to job, prestige, and enjoyment etc.

Overall good graphic

Can you say that simpler, please?

I appreciate your honesty.

 

[TLR Is Mental Poison]

Dont look at your residence as an investment... look at it as a place to live

I bought my first place about 3 years ago after years of renting. They def have their pros and cons. I personally would not buy as a single dude unless you are sure you are going to be in one place for a long time.

As far as "paying someone else's mortgage", when you actually break down the equity you keep you're not building much wealth in the beginning. Probably better to rent a place that's cheap enough that you can afford to save and essentially build your own equity on the side. Then once you get settled find a place to buy

 

[GnauzBookOfRhymes]

Too many variables breh.

Where do you live?
Do you see yourself living in same city in future?
What do you make after expenses?
Do you have steady W2 employment or are you self employed/own business?
Kids? Now or in the future?

 

[Jimmy Two-Times™]

Too many variables breh.

1. Where do you live?
2. Do you see yourself living in same city in future?
3. What do you make after expenses?
4. Do you have steady W2 employment or are you self employed/own business?
5. Kids? Now or in the future?

1. London
2. Yes. I could live on the outskirts of London, but I don't wanna be too far from feeling comfortable. I need to be in a big city and London is my home and that's where I grew up. I think I'd go insane if I lived in the middle of nowhere but had a big house with no one around. I need to be able to walk outside my house and see people.
3. I'm a new graduate, so not much at the moment (<£30K with the prospect of £45K-£70K on average after a few years) but I plan on doing freelancing with the same trade on the side as well as diversifying my investments within the next 5-8 years once I have learned enough about investing in various markets. I am currently learning about housing property, London Stock Exchange and AIM (London Stock Exchange for small businesses) in order to get a leg up in my financial situation.
4. I've got no idea what a 'W2' as I'm British. But, from the way you worded it STEM jobs in the UK are extremely in high demand especially in post March 2019/post-Brexit when these stupid old racist white c*nts send the good hard working foreigners back to their country which means big business is going to certainly be secured which is something our current Prime Minister is sorting out now with the European Union [Brexit may actually not happen since a new referendum is shaping up ]. British companies with a stronghold in the UK will snap up the void left in the market place which ideally will make the market thrive for finding/creating work for people like myself ready to move up in this world. So to answer your question, employment seems to be steady for now and the foreseeable long term future for what I do in IT.
5. I definitely want kids... one day... but only once I'm secured. I'm not looking for a serious relationship now to potentially mess my future up. I just wanna get myself in a good space spiritually and financially first before settling down and fukking around literally.