A question by Ano: I’m 24 years old, and I’ll soon be making the decision of either buying or renting a home. I’m single, no kids, no wife, just me. I have about $2000 in my bank account. The only time I’ve moved out was with a friend for about 6 months and have been back home ever since. I plan on living in the area?
Answers
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I must be getting this question every week because it appears to be popular. The fact is, it depends on your situation. Owning outweighs renting in the long run for a variety of reasons, according to statistics and reality. However, it also relies on your unique situation. For instance, are you planning to leave the area soon? Do you possess the self-control and investing expertise necessary to outperform the benefits of homeownership if you rent? To resolve this, you need the assistance of your financial counselor. Renting is preferable to buying if you have the funds for a down payment and can pay your mortgage in less money each month. However, this might not be feasible if you reside in an expensive area. Contacting a trustworthy lender in your area to go through the numbers is your best option.
Real estate is a long-term wise investment, and many people have made their fortunes through real estate ownership.
Vaor
“Seeing what kind of loan you will quality for is the key to whether buying is a reality or not. 2k is not enough money youre gonna pay that in the earnest money deposit. I’d advise you to take a year to save…a complete year.
I bought a place when interest rates came down. Now is an excellent time to buy….and I’ve been around over 50 years and have owned a few homes and rented many. Buy a starter house and get roomates would be my suggestion to you. It will help until you start makeing the bigger money around age 35-40. My first house, I used to pay extra principle each month, when I bought my 2nd home, I already had like 50K in equity, so I was able to pay cash with all the other money I saved. My second house was all messed up, it took me 3 years, and about 30K to renavate it. But, it was all so worth it. I’m good for the next 15 years on repairs and upgrades. Buying a home while young is a decision you will NEVER regret. My monthly bills now only come to about $400 since I’m paid off, the rest of the check is mine to save or spend. I assure you….esp when your old and have little money. (My first house at 18, I had 4 roomates to help pay rent and other bills and a 20 year old car and it was a wonderful time) Think of your first home as a stepping stone. Congrats and enjoy the journey, it’s exciting move!.”
Alba
“I had to rent due to double digit interest rates in the 80’s……but when I finally got serious about life, I bought a place when interest rates came down. Now is an excellent time to buy….and I’ve been around over 50 years and have owned a few homes and rented many. Buy a starter house and get roomates would be my suggestion to you. It will help until you start makeing the bigger money around age 35-40. My first house, I used to pay extra principle each month, when I bought my 2nd home, I already had like 50K in equity, so I was able to pay cash with all the other money I saved. My second house was all messed up, it took me 3 years, and about 30K to renavate it. But, it was all so worth it. I’m good for the next 15 years on repairs and upgrades. Buying a home while young is a decision you will NEVER regret. My monthly bills now only come to about $400 since I’m paid off, the rest of the check is mine to save or spend. I assure you….esp when your old and have little money. (My first house at 18, I had 4 roomates to help pay rent and other bills and a 20 year old car and it was a wonderful time) Think of your first home as a stepping stone. Congrats and enjoy the journey, it’s exciting move!.”
Emily
Dude, $2000 no where near enough money to buy a home or even a crappie apartment and if you do rent, it’s only going to last for about 4 month’s anyway ($500/month estimate, if your lucky) let’s hope your income is stable enough to pay for the rest of the month’s.
Sry dude I didn’t mean to sound harsh there, unless you made a type error and you’ve meant 20K, in that case I still recommend that you rent, I doubt you will be able to buy a home for 20K m8, even small and if your living on your own, I recommend that you rent an apartment out instead because it’s cheaper and it’s small, as you are on your own, you won’t need load’s of space.
Because if you were buying an apartment you will need to pay a month’s deposit like if you were renting, if you are buying an apartment and you need to pay the same amount again but upfront + the original price of the apartment. And there aren’t many good apartments that are worth 20K depending on the area you are in and idk any apartment what are selling for 20K so good luck, you can find much better apartments just up for rent almost anywhere else.”
Richard
“hen it’s silly to rent a home or buy a home.
And certainly $2,000 is not enough for a 20% downpayment on a home.
Sure it seems to you more to rent than to buy and it’s probably the city you live in. I’m paying $611 for rent (and everything is supplied like sewer, water, pest control, maintenance, garbage removal, pools, tennis courts, pristine upkeep, etc.) while you’d probably be paying over $1000 to rent a home and may be expected to do some things around the house.
The economy has been bad, and in fact still is no matter that the news says, and rates are low but there’s been so much flooding and natural problems that I’d suggest you not buy..Seeing what kind of loan you will quality for is the key to whether buying is a reality or not. 2k is not enough money youre gonna pay that in the earnest money deposit. I’d advise you to take a year to save…a complete year. I’m not a fan of completely depleting your savings so if you save 15k in a year I’d only come to the table with 8k-10k for a down payment. Sometimes the money in your bank is worth more than giving it away for 30 bucks a month off your mortgage. It definitely smarter to buy a home but most people can’t do to their financial inconsistencies and their bad credit. You have good credit and decent income you are a idiot if you rent. Bought my first home at 27 in 2007 and I lease it out now and I profit $600 every month, I’m selling my second home now and I’ll make at least 70k off that transaction and my current home is worth 50k more than I owe on it. If you choose your property wisely… owning has a earning power….renting is just a black hole. Youre making someone really rich. Not my style. Its your choice though.”
Silverloan
“You’re in a good place right now, you’re young and you have secure income, not guaranteed income secure for the moment.
Whether you buy a home or decide to rent is pretty much up to you.
If you decide to buy a home, upon signing onto a mortgage, you’re saying that you will have the resources, consistently, to cover that mortgage during it’s duration.
Mortgage does not include things like utilities and property tax.
With a home you have the option to re-decorate and make changes as you please, with the understanding that technically, you do not own the home until the mortgage is paid in full. Another thing people tend to forget is, the mortgage is for the home, not the property on the home. If you don’t pay the property taxes, the home can still be confiscated to cover unpaid taxes, just a thought.
I remember, a young man I met many years ago, he bought the property and build the home on the property, he was smart, at the time he was a student to become a pharmacist, a secure occupation.
With renting, you own nothing, no obligations, nothing to fall back onto and most important, your neighbors are a lot closer to you. You share the walls, the floors and the ceilings with your fellow tenant. A big con is apartment buildings in this country has no regulations requiring insulation nor soundproofing of any kind. If you look at the many apartment reviews, you will see a steady stream of “paper thin walls”, water damage, etc. But with apartment living, if something goes wrong, you contact the office and someone will take care of it for you, with a home, it’s up to you to take care of maintenance issues..”
Coraan