Comments on: Renting is Not Wasted Money

By: Jack

Jack — Wed, 02 Nov 2011 21:42:40 +0000

Just to clarify- rent *is* tax deductible in some states (like my current state of Massachusetts).

By: Amanda C

Amanda C — Mon, 31 Oct 2011 22:43:09 +0000

I’m in Canada, so the tax deductions aren’t applicable, and the housing market is different than it is in most of the US. My partner and I are starting to think about buying so that we have something that is ours, and we can do what we want with (it helps that I work in the construction industry, so I have a lot of know-how and contacts). For the time being though, we scored quite a deal on our apartment, and we did so through a lease transfer. Unlike most other places, in our province after the initial year of the lease it up, unless the landlord agrees to something different, the lease automatically renews for another year. And continues on and on. So we ended up getting a lease transfer via kijiji (seems more popular than craigslist for apartments in this area) for a very very good price, as the landlord cannot up the price between tenants this way, as we were taking over the previous tenants lease. We’re quite happy for the time being, and happy to be saving up a nice downpayment, while taking the time to explore what is available for us to buy.

By: Mishka

Mishka — Sat, 01 Oct 2011 00:46:13 +0000

PS I should mention that I’m currently living with my parent$, and I’ve only rented during college.

By: Mishka

Mishka — Sat, 01 Oct 2011 00:42:30 +0000

Or renting is for you if you don’t mind your bathroom ceiling falling in chunks on your head while you’re trying to shower in the old school bathtub that manages to get water all over the ground causing mold buildup after awhile (even if you dry it well) next to the creaky hallway adjacent to the neighbor with the dog who barks 24/7. Don’t even get me started on parking…
I’m saving for a house, thanks.

By: Meghan Holender

Meghan Holender — Thu, 02 Jun 2011 22:39:57 +0000

There’s also Robert Kiyosaki’s way of looking at your place of accommodation. “The house you live in is a liability”. Better to rent somewhere nicer or cheaper to live in and a buy an investment property that will generate positive cashflow.

By: Dave

Dave — Sat, 07 May 2011 17:11:03 +0000

In the process of buying a house in Southern California now. We found a house that the payments will be comparable to renting, we have a low interest rate and the house is in an area that has held up better in the housing crash. My wife and I are 26 and our main reason for buying is because we want to own our own home. We have traveled the world via the military and paid outrageous rent in Japan. I can’t stand the thought of lining another investors pockets with my rent money. I would rather lose my money on my own home than put it into someone elses pocket. We have carefully gone over the amortization sheets and will be more than able to continue maxing out our retirement contributions along with owning this home. We know the risk but the benefits of owning far outweigh the possible costs.

By: Andrea

Andrea — Mon, 24 Jan 2011 04:27:34 +0000

As with most things, renting vs. owning comes down to your lifestyle and goals. For me, renting is the better option because I like the freedom to travel a multiple times a year, both in the US and in Europe. I feel like I’d spend more money on a house and wouldn’t take the trips that I do to visit friends who are all over the place. I also plan on moving out of Saint Louis in the next 1-2 years so for me, owning would tie me down and I wouldn’t make any money off of a home if I only owned it for 1-2 years. At my age (25) I have a lot of friends who have recently bought or are looking to buy condos and houses, and I’m happy for them, but for me, it’s just not the right time.

By: mike

mike — Fri, 23 Apr 2010 03:48:55 +0000

IF you can get a 30 yr fixed, and
IF the payments will be comparable to what you pay in rent THEN go ahead and do it. I did. Another option is a townhome/condo… you generally arent responsible for the outside and can do pretty much what you want to the inside.

By: Johanna

Johanna — Thu, 22 Apr 2010 19:53:43 +0000

Sara, BT, Al, and Jessie:

Don’t forget that you can always pay ahead on the principal on your mortgage, and avoid lots of interest that way. Especially the first few years of the loan, when most of the monthly payment is interest, you can get ahead by putting extra towards the principal and avoid paying the interest on it.

However, no one rule fits everyone. There are good reasons for both buying and renting, and the more each of us can do to make an informed decision, the better.

By: Jessie

Jessie — Tue, 24 Mar 2009 18:55:05 +0000

Al brought up a good point. The tax deduction is a huge benefit, especially for singles with no children. The amount of income tax you pay the gov’t that is offset by the tax deduction covers property taxes for the year. Meanwhile you gain equity (well, certainly not right away) in the long run and equity on your home is your wealth.