Question--Rent or Own

[MOUNTAINORACLE]

Why would anyone want to own a home rather than rent?

I am a home owner and have been since 1972 when I made the final payment on my gentleman's farm with a three story, 5 bedroom old style farm house (built in the 1920's).

I retired for the second time in June 2007 and started collecting my two retirements and social security and with all this extra time on my hands, I got to wondering if I would be better off selling the home and properity and renting.

My three children are now adults have moved out of this area, are married with children, and own their homes (yes, they have mortages). My wife and I now own a home that too big (we have no need for 5 bedrooms) for our needs. With the price of heating, electric, & taxes going up & upkeep of the properity I can see a real plus in renting.

The main things that stop me from selling are:
1). The value of homes and properity at the present time, don't think I could find a buyer that would pay fair market value.
2). I will not consider renting the home and properity as I rented one house and had a bad experience with the a**holes that I rented to.
3). Talking Mama into moving out the house. She has lived in this house since 1972.

Can anyone give some pros and cons on the renting idea?


oracle

[PocketProtector]

Buy Low sell high....
Tax breaks and the ability to make profit in time. Either way you will pay almost the same.

[Pro2A]

I would rather rent, at least for the time being. If you are up front with the landlord about pets and various other things they are 9 times out of 10 going to work with you.

You don't have to deal with all the property tax (I know its included in the rent, but I don't have to directly deal with it).

If you have a good landlord (like mine) you can get repairs done pretty much free of charge.

It's more hassle free, at least in my opinion.

[normanvin]

Owning:

Your house your rules, preform maintence, taxes

Rent:

You must abide to what is in the lease, wait for someone else to fix things "their way", pay rent

[SteveXD]

The only issue I see with renting is it's not a fixed expense. I think there are going to be a lot more renters on the market driving up the cost of rent. Second, you do lose some control over what you can do/have and who you live next to.

However, owning a home has a lot of expenses that could arise that would far exceed the amount of rent. i.e furnace/roof water pipes etc..

I really think it's a toss up. My family always told me to but a home when I was renting. But I have to say since I just sold my last home and bought my new home I losted a lot of money in interest that I'll never get back

[Pro2A]

The only issue I see with renting is it's not a fixed expense. I think there are going to be a lot more renters on the market driving up the cost of rent. Second, you do lose some control over what you can do/have and who you live next to.

At least in my contract it specifically says the rent for this year (from sign date) stays the same. It can be re-negotiated in a year. When I rent I try to rent privately, and not from companies. It's easier to get to know a private landlord and have stuff done etc... then dealing with some office management.

[normanvin]

The only issue I see with renting is it's not a fixed expense. I think there are going to be a lot more renters on the market driving up the cost of rent. Second, you do lose some control over what you can do/have and who you live next to.

However, owning a home has a lot of expenses that could arise that would far exceed the amount of rent. i.e furnace/roof water pipes etc..

I really think it's a toss up. My family always told me to but a home when I was renting. But I have to say since I just sold my last home and bought my new home I losted a lot of money in interest that I'll never get back

My county just reassessed the property values. I am sure people rent will be going up.

[knight0334]

Renting is really a waste of money in my opinion, unless you plan to move again soon.

If you can afford to buy a place, and you dont intend to move - always buy it.

With renting: you do pay the owner's mortgage, you pay their property taxes, you pay the home owner's insurance, you put money into their pocket. In effect, you pay everything the home owner would pay and then some.

[kevindsingleton]

Mountainoracle,

How many acres do you have, there?

I'm looking to buy a property, just like that, and the Grove City area is on my list of possibilities.

PM me, if you want to discuss further, or my e-mail is kevindsingleton@yahoo.com.

[Pro2A]

Renting is really a waste of money in my opinion, unless you plan to move again soon.

If you can afford to buy a place, and you dont intend to move - always buy it.

With renting: you do pay the owner's mortgage, you pay their property taxes, you pay the home owner's insurance, you put money into their pocket. In effect, you pay everything the home owner would pay and then some.

There are some of us who are just getting out on our own in life and a new home is out of our reach, at least right away. Renting is a good option to get yourself financially stable before you buy.