Comments on: Buying Vs. Renting: Is Homeownership Better for your Money?

By: Jeanett Blau

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By: Yang Habben

Yang Habben — Fri, 05 Mar 2010 09:02:43 +0000

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By: CChase

CChase — Thu, 27 Sep 2007 00:09:11 +0000

You assume that you will always get 10% on your alternative investment in the S&P 500 index. While a 10% year-over-year increase is quite significant over the long run, you can easily run into a stretch where you find yourself with little appreciation, or even a dip in value. I know, because I’ve been-there-done-that. The 10% figure is one that seems to hold true over the long run, but may not be the case during whatever home ownership horizon you envision. Also, you leave out in your analysis the tax benefits of deducting the interest portion of your mortgage payment. If your income is high, the tax savings from your mortgage payment can be significant, and those savings can be invested in some other asset(s).

By: Daniel

Daniel — Wed, 12 Sep 2007 08:49:02 +0000

I couldn’t understand some parts of this article Vs. Renting: Is Homeownership Better for your Money? | How I Will Be Rich, but I guess I just need to check some more resources regarding this, because it sounds interesting.

By: Steve Austin

Steve Austin — Tue, 11 Sep 2007 00:02:34 +0000

Owning is a pain in the azz. Renting is a great simplifier of life.

Yes, owners have great control over their property, but renters have greater control and flexibility over where they wish to live, and for how long. Friction makes this kind of flexibility prohibitive for the owner.

Finally, most owners (about 2/3rds of them) aren’t really owners, rather they are long-term renters from a bank or other lender, on a rent-to-own plan.

If you’re going to be an owner, and are as certain as you can be that you have found a good place for yourself (and family), have the ballz to buy it outright. Don’t jack around with lenders who *own you*.

By: Matt Wolfe

Matt Wolfe — Sun, 02 Sep 2007 19:25:28 +0000

I can see where people are coming from when they say they want full control over the property and that they want no limits with what they can do with it. But for people who are concerned with growing their wealth, renting may be a better option. That is the main point that I am trying to make. Thanks for the comment.

By: Jesse

Jesse — Sun, 02 Sep 2007 19:13:23 +0000

I tend to lean towards the home-buying side. I think you actually are throwing your money away when you rent. All you’re doing is putting food on the table for the family you send those checks to. I would need the full satisfaction of knowing that a house is mine. I don’t want limits, and I think a little extra money would make it worth it. Good viewpoints, though.

By: Matt Wolfe

Matt Wolfe — Sat, 01 Sep 2007 17:43:43 +0000

I agree that it is harder to invest the difference and that investing in a home is a forced savings plan. That is one of the up-sides to to owning. But if you are disciplined with your investing, renting make more financial sense. Thanks a lot for the comment.

By: come clean

come clean — Sat, 01 Sep 2007 09:38:55 +0000

The problem most people have is that they won’t take the difference between the mortgage payment and a rent payment and invest it. Housing is forced saving much like getting a big tax return back. It’s not necessarily the best way to save, but it is better than if you didn’t do any at all.