Should you borrow money to buy a house or rent an apartment?
Which option will save you more money? Buying a house and paying the mortgage off, home insurance, HOA fees or renting an apartment?
- 11 months ago
If it's only a few years that you plan to live in the place, renting may be cheapest because you don't have to pay the costs of buying and selling and, if applicable, getting a mortgage (and because mortgage payments in the beginning of a mortgage are often mostly interest, not principal).
If you plan to live in the place more than a few years and you're sure that you're not overpaying, then buying is smartest. The monthly costs might be higher to buy, but (1) much of the monthly payment eventually will be principal, which helps your net worth, and (2) you'll get the benefit of appreciation in price of the property, if it appreciates.
- Anonymous11 months ago
there is much miss thinking .. agree the question of saving money an should you borrow to do so
show you are not clear on finance and I will tell you;; that you will not get it here.
you need to find someone who will help you,,, BUT you will respond "i do not want to do that"
rent for a time a low cost place depending on where you are.. her $500.00 a month
you do not rent the same kind of place you buy
if your goal is a house $120,000.00 payment $1300.00 per month
take the $1300.00 take the rent out of $500.00 save the $800.00 per month for 3 years at least for down payment you will have $28,000.00 saved for the down payment
IF you cannot save this,, you should never buy
some other off the wall facts.... when you buy you buy because you decided it fits your budget not your dreams and the fact value change does not change the facts it fits your budget... a property worth less/more later does not change the fact it was in your budget then and you keep paying the payments
if you foolishly buy thinking refinance later you failed the entire idea of affordable budget
BORROWING for down payment or move in rental is proof you should not do either
- BLv 711 months ago
purchasing a property to live in it requires thought and effort, and a down payment and the location of the property to live in is extremely important to future growth in the value of the house. check realtor.com for zipcodes where you might buy or rent and compare your monthly costs before doing either one. you may find that rents are very much like throwing money away, so consider the investment in a piece of property.
- StephenWeinsteinLv 711 months ago
If you are going to live there over 30 years, then buying is probably better.
If you are going to live there less than 10 years, then renting is probably better.
If you're going to live there at least 10 years but less than 30, then it could be either; it depends on whether prices go up or down. And a lot of other things.
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- SlumlordLv 711 months ago
In the long term owning is almost always better than renting simply because rents go up over time whereas for owners expenses go up a bit but mostly the value of their properties go up over time. Thus after a long time owning your property equity will be vary large - if you rented you'll never get that.
However, there are major costs to buying a property so if you are going to be there less than 3-5 years then just rent. It take that long to recoup the costs of buying.
- linkus86Lv 711 months ago
Generally speaking buying is an investment that will allow the buyer to get back every penny paid toward the house back when it comes time to sell, and in many cases far more. Once rent is paid, that money is gone forever.
- curtisports2Lv 711 months ago
Over many years, you may spend more money to own a house, but from what you spend you subtract the value of the paid-off house. The number that you have then spent is usually substantially less than the total rent you paid, which at the end, leaves you with nothing but receipts.
- Beverly SLv 711 months ago
Renting never saves money.. you throw it out the window every month. With a mortgage you build equity.
- JudyLv 711 months ago
Depends on too many things to answer.
- Anonymous11 months ago
There is no set answer to this.
Owning a home and renting both cost money. They don't all cost the same.