Owning versus Renting

Discussion in 'Buying & Selling Real Estate' started by Corzhens, Nov 12, 2015.

  1. Corzhens

    Corzhens Senior Investor

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    We have a friend who rents a house in favor of his business. He said that if he would buy a house then he cannot engage in his business since it is unwise to borrow capital from the bank. But he is employed and his business is just a sideline income. He was actually inviting us to join his business in lieu of putting our money in a house. But our concern is to have peace of mind. It is a different feeling to realize that we own this house where we live in.
     
  2. Onionman

    Onionman Senior Investor

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    There's probably no one-size-fits-all approach but at the end of the day it all comes down to personal choice and affordability. If he wanted to buy but couldn't afford to do so he could get himself into a lot of trouble if he stretched himself. I guess we all have to adapt our goals to our circumstances.
     
  3. pwarbi

    pwarbi Senior Investor

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    I agree and there isn't a one shoe fits all approach when it comes to either buying or renting.

    People will have their own opinions but at the end of the day, that's all they are, opinions and you have to make sure you just do what's best for you.
     
  4. crimsonghost747

    crimsonghost747 Senior Investor

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    In general, assuming that you have found a the place where you want to settle down for the forseaable future, it's better to buy. But there are a lot of reasons why some people prefer to rent, and as the others have said each person has a different situation so you can't have one model that works for everyone.

    I'll be renting until I find a city where I know I want to live for the long term. Then I'll start looking at buying.
     
  5. Corzhens

    Corzhens Senior Investor

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    That's a pretty good idea. Actually one option is to rent a house in a place that you prefer before buying a property there. I remember a friend who wanted to settle in Tagaytay, a remote city that is 2 hours drive from Manila. When I told the story of my uncle who has a house there, he was turned off. He wanted to settle there because of the heavy traffic in Metro Manila. Naturally he was disappointed to learn that Tagaytay has also a worse traffic than other remote cities.
     
  6. L_B

    L_B Well-Known Member

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    I have done both. I rented and then we bought a home then I went through a nasty divorce and we had to sell the home. I am not back to renting. At this time in my life renting works best for me. I couldn't afford the upkeep on a home and all the other responsibilities that a homeowner has. I also have the freedom to move when I choose if I find a more afordable place.
     
  7. kgord

    kgord Senior Investor

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    I think it really depends on your personal situation. I think at times in your life it makes sense to rent and other times it makes sense to buy. I like the freedom that comes with home ownership, no one can tell you what to do with your property, and home except for the homeowners associatisons who try to. I think it is a personal decision, but when I sell my house...I need to buy something else. I mean I don't meet the requirements to rent, and buying something outright would work better for me.
     
  8. Rainman

    Rainman Senior Investor

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    Going slightly off-topic here but since it's related, there also this question. Is it better to rent or buy business premises?

    Renting is often better. The money that would have been tied up if you bought some property can be invested in the business to make you even more money.

    Renting business premises is both somewhat risky [should the owner desire to sell the buildings to someone who wants to start a business in the same place for example, you'd forced out of business] but it could also work to your advantage if say competition gets to be rather stiff and you don't make as much money as you used to, you could find a better place where you could move to. This can be a lot harder if you own the premises. So depending on circumstances and what one supposes the future holds, sometimes renting can be the better alternative.
     
  9. pwarbi

    pwarbi Senior Investor

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    When it comes to business premises I would imagine that renting is the most popular and the safest way to go. A lot of businesses do fail so unless you know for certain a business is going to succeed, then your not going to buy the property just in case it doesn't.
     
  10. L_B

    L_B Well-Known Member

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    I would say when it comes to businesses it is better to rent. There are a lot of businesses that don't make it so if you put out a lot a money to buy a place and set it up you are already down before you even get started. If the business fails you still have to pay for the building that you purchased. If you rent you are only responsible for the lease that you signed so you can get out of it without it costing you a whole lot. Unless you know that you have a business that is going to be a huge success then it is best to just rent in my opinion.
     

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