Renting VS Buying a Home
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- Опубліковано 5 кві 2020
- Renting VS Buying a Home | SUBSCRIBE to ALUX: / @alux
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In this Alux.com video we'll try to answer the following questions:
Should you buy a house?
Should you rent a house?
Is renting better than buying?
Why buying a house is worth it?
Why renting a house is worth it?
What are the differences between buying and renting a house?
Which is cheaper, buying or renting a house?
Is it ultimately better to rent or own a home?
When is it time to buy a house vs renting?
Is renting better than buying?
When should I rent vs buying a home?
What are the pros and cons between renting vs buying a new house?
Why should you rent vs buy a house?
Is renting a waste of money?
#alux #renting #buying
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Hey Aluxers, renting or buying?
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Stay home!
Student Appearing Professional Exam, 15 points... Make a video... Requirement of Proper mindset as Writing Chartered Accountant Exam of India, ....
Thank you for the continuous educational videos. Do you have Any discounts for the meditating class?
Buying. Looking to refinance. Does Alex have a list of best companies for loans/refis? Thanks
I think you should make a video on buying vs building a home
Buying a larg area and building a community near yiur home is best and can genrate rent in your area and they wont mess with you plus any general store in that area will make a good income so starting your own store or giving a store on rent at high rent is best buisness idea
As a 27 year old bachelor, I prefer renting because of the flexibility and limited repair costs.
Appreciate you guys!
Short term - renting
Long term - buying
Yup!
Buying 🏡. Living in it and renting part of the house to cover the mortgage. Thus making it a FREE house when you retire 😝
One thing that owning a house free and clear. You can always live in it regardless of the economy. Just pay your taxes and no one can take it from you. Avoid condos where associations can control you and put a lean on your property.
Thats me...
Thanks for the tip. 👍🙂
I love renting, so when I want to up and leave (after the lease), I can do so quickly. I have never been a person to stay in the same place for more than a certain amount of time. The longest I stayed in one place (after moving out of my parents house) was maybe 5 years in Belen, New Mexico.
I've been renting for 7 years now, lived in 4 countries and around 10 different apartments ranging from "a disaster" to "fancy hotel-like" places. I'm very glad I hadn't chosen security over adventure.
That sounds very depressing to me, to each thier own
@@dgjFOURlife the opposite too sounds depressing. Living in the same city, same town, same house for many years is depressing.
Don't limit yourself, you can have both. My family used equity in their first house to buy more houses over time, including houses abroad and rent these out. They live off the rental income so the houses pay for themselves and they use the earnings to travel and stay in nice hotels worldwide. I have followed suit.
@Bhajau sabka Bhonga Can't disagree with you there but as you can see, you're a prime example of what I'm saying.
As long as you also properly invest your money that you didn’t spend on buying the house, then you are golden if you love renting
For me, definitely buying. You have more freedom, and I'm fed up with paying rent.
Renting for a lower rate and save money to invest, again when you switch jobs you can rent closer to work to avoid traffic I personally love flexibility, you can still buy a house and rent it out and go rent.
Buying a house and living in it is not an investment it’s a liability until you payoff that house, but if you buy a house and rent it out that’s an investment
I think renting is a better option because in times like today, no one really wants to stay tied to one place for over 10 years.
Buy to rent them. Rent it to live yourself in.
Have you done both renting and owning?
@@mkfitzge6354 I have. Could have paid for the house without it coming from me. Rented one side of the home that was the same as the mortgage. Paid it off quicker with the payment coming from my pocket and the renter's payment.
@@s.stewart8113 nice
I do. I now own my home. No mortgage. In today's world, that's a good thing.
During these uncertain times, you guys are still putting out valuable content. Thank you, Alux! ❤️
I own 56 houses, and trust me, you the renter are paying for the repairs. On average I profited 375$ per house, the repairs are already baked in.
Secondly get the mortgage as long as possible, your goal is not to pay it off your goal is to use other people’s money to get profits in your pocket. Also in 20 years the value of a dollar will be 50cents on today’s dollar, but rents will only go up.
On point advice! Also- *56 homes!?! IMPRESSIVE!!! Wow! Good for you! 🤩
Exactly! I own about the same and you can not even compare. They're not even fair game. Buying all the way. If you know what you do, you can build an empire.
I cannot understand
Buying a home is the most ideal thing. Renting is only advisable if the area is likely to be affected by disaster. I wish everyone safety and success
Grace Morgan speaks UA-cam Channel I agree and it is nice to own your own house. You can get kicked out if the owner wants to sell the house or other reasons. Moving is such a pain.
Owning in a disaster makes it hard to move.
Buy houses for renting them and form an LLC. Rent your home you might be also able to write off home expenses if you use it as an office!
Thank you so much💜. Same to you too.
No, it's not
Save a big deposit while waiting for a market crash. Then buy a house in an area with high tenancy rates. If single share a flat with someone else to live cheaper and pay it off asap. Then buy your own house to live in and use the rent from the rented out property to subsidize your mortgage and pay it off sooner also.
I think it depends on your situation for example if you are a univ student it is better to rent and if you are permanent in an area it is better to buy.
I own my home, but sometimes I wish I had rented. I sometimes wish I could just give 30 days notice and move to a different area.
You can rent out your house and move to the area that you want
@Ne Ws Actually it's the smart thing to do, the mortgage will be paid by someone else whilst the capital will appreciate and all the while you can go live down a hole if you want. And your home stops becoming a liability and instead becomes an asset.
@@prateekwalia1898 the issue with that is what if I rent out my house and then sign a lease elsewhere. Then my tenants break their lease and leave me with my mortgage payment AND my rent. I'll NEVER put myself in that situation.
@@dhodges1911 You live alone or with a family? You could easily Airbnb the shit out of your place.Thus, you always know who's coming or going add technology to the equation & wa-la. 3rd world it at 200 a month for some hotels/apartments even(*if you're single).
@@dhodges1911 With everything there's risks but renting out is always one of the safest bet because people will always need somewhere to live. You can put in your renters contract that you need notice before they're allowed to leave and find someone in the mean time or lease instead.
I rented for about 8 years, until I moved to an area I liked. Once I knew I liked the area, I bought when the market tanked in '09. My monthly payments are less than modest rents in the area and I'll have it paid off about 14 years early. In MY situation, buying was clearly the best option. I can easily see both sides, though, depending on everyone's path in life. Hope you're having a great day! Stay thankful.
You were lucky
Buying is a better option if planned to live in a place for over 10 years.
ua-cam.com/video/8-yIaxFUHUg/v-deo.html
My husband used to own and he said all the problems financially and emotionally are not worth owning, so we decided to rent... And we don't pay utilities too 😌
I have my own house 🏡 , but i’m still renting as well.. because i live in different area, both are good . I feel security to owned property, and flexibility to renting.
@@marvelgrey2843 You just got the best of both worlds
Renting u are losing.
prefer to buy when one could afford it since the landlord over here usually rent out 50% more than their monthly installment and will not fix anything broken.
I love renting, i know many will say it's stupid but i don't know....
i live in london. i rent a 2.7 million pound apartment, it would be 9-8k a month to get a mortgage, but i rent for 5.2k. if you’re in the same situation you’ll obviously love renting.
As a university student, I personally prefer renting a rather small already finished house immediately after I graduate so I can enjoy the flexibility that comes with it because I intend to move a lot after graduating and all I would need is to pack up my clothes and other personal belongings whenever I need to move. But I am intending to purchase a piece of land very close to my university soon and I intend to build a complex of self contain rooms which will be on rent to students. I don't really think I will ever live in a house owned by myself as I don't see myself staying in one place for too long but I intend to own properties which I intend to rent out.
I'm curious. What do you plan to do that will require you to move around a lot? If you don't mind me asking.
@@KyrstOak to be honest, I'm still deciding.
Though I have a small businesss and multiple investments. I may still go into one of the professions in the field I'm currently studying. I'm interning in a company right now and I've noticed that people who are willing and able to move at noticed, climbing the ladder faster and are paid more. Mobility is a big plus, as companies know you are willing to move at a moment's notice and they are willing to pay you more for it.
@@saratujibrin3755 I see. Interesting.
According to my comparison, mortgage is usullay 1.5 times of the monthly rent, but who in earth wants to live in someone’s else’s house. I can never be at peace. I’m happy to pay that mortgage for 15 years and die or whatever, I don’t care after that, I have a home.
Very good topic to discuss. Buy too soon and the additional costs and renovations ideas will cost far more than renting cheap. Documented a budget system which includes reducing costs and prioritizing investments. This way we can be sure to make progress on financial freedom.
Hello and thanks for your continuous and tireless effort to educate, inform, keep us safe, and always give finance and business training plus self development tips that your outstanding channel is a must and a pinnacle.
My in-laws buy a new home every 5 years or so. They earn money every time.
We bought our first house for $241, it's now worth 400k and this was only 6 years ago.
Buying is great. However, like you said, pocketsize matters.
Omg I've been waiting for something like this 😭💖
I actually prefer buying a home 🏠 then renting it , cause buying a home 🏡 means you own it for life , and you have all exclusive access to it
you don't own it till you paid it off lol. the bank does
The bank does not own the property unless there is a FORECLOSURE proceeding. You are provided a DEED with YOUR NAME on it when you buy the property. Legally, the house is YOURS. Your house is being used as collateral by the bank until the mortgage is paid off. The bank is not the owner!
Love your channel! Keep up the excellent work!
The expenses of an appraisal, home inspection and the truth in lending statement are all safeguards for the buyer to know exactly what they are getting into before a mortgage commitment is made. If there’s no prepayment penalty the mortgage can be payed off early or a profit could be made if the house is later sold. Depending on the buyer’s circumstances their options are unlimited. Renting long term makes some one else rich. Ownership is everything.
I rent and love it because I move a lot for work and enjoy using all the amenities. Buying a home is cool if it makes economical sense, and if it allows you to live below your means. PMI, taxes, HOA and down payments can eat up one's savings
much awaited from this channel 😍💞
You are headed in great direction alux👍
Lol I luv how dude at 4:40 tries to play off dropping the key's lol some unexpected humor on a serious topic
I personally believe that buying a house is a better option because I like my freedom and I appreciate it
But each option has pros and cons
But I think buying a house during bad times is not financially smart
Stay at home stay safe and listen to professionals
Buying a home during the bad times is a smart move as long as you can afford the payments since during the bad times the prices should be lower.
@@joebloggs4191 well interest rates are very low so is your income
So I personally don't recommend it
But it's your play who knows you may have a few tricks up your sleeve
@@ahmaddahir6545 Like I said so long as you can afford the payments, typically if the market is down it means house prices will be lower hence perfect time to buy if you are in a position to do so.
@@joebloggs4191 I believe you're smart so I can't really argue with you if I am bound to loose
AHMAD DAHIR 💯🙌🏼
I knew about the story about the red paper clip. I was in grade 3 it was back in around the mid 2000. And I thought it was so interesting and throughout the years, this memory appears. I just thought about it this week. Thanks again for great content :)
Thanks Alux for showing us the way.
Buying a home in the right area can start someone off in the right direction to build an empire. You own the home in the right neighborhood, take advantage of the tax breaks and if you get a two bedroom, house hack. Part of the mortgage is being paid off by your roommate and money saved can afford to buy a bigger place to continue house hacking, while renting out your old home or maybe Airbnb. Gradually you'll be able to own more and more property as long as you know how to use leverage to your advantage.
wow, you guys are the best content creators woohoo!
I have enjoyed watching this video, I have even lost count of the times I have watched it.
"Renting is usual cheaper than paying a mortgage"...Not in New Jersey. But technically yes renting is cheaper overall than having a mortgage. Great video as usual and appreciate the content.
Tanks Alux for all you been doing
I too believe buying is better than renting. Renting is temporary, buying is for a lifetime (in most cases)
Even life is temporary not only renting a home.
@basilis hellas true! Stay safe 👍
Depending on your priorities. Personally the security part is big with me, I detest moving and I love modifying my home to my comfort.
#CONSIDERATIONS FOR BUYING A HOME :
1. OWNING A HOME OFFERS YOU SECURITY.
2. YOU CAN MAKE ALTERATIONS THAT SUIT YOUR PERSONALITY.
3.THERE ARE TAX BENEFITS THAT COULD BENEFIT HOME OWNERS.
4. OWNING GIVES YOU THE OPTION TO TAKE A LOAN.
5. IT CAN BE A GREAT LONG-TERM INVESTMENT.
#ARGUMENTS FOR BUYING A HOME :
1. BUYING A HOME MEANS A LARGE FINANCIAL OUTLAY.
2.IT'S EASY TO LET EMOTIONS SWAY YOUR DECISION.
3.THE INTEREST ON MORTGAGE IS HUGE.
4. THERE ARE MANY HIDDEN COSTS.
#PROS ON STAYING ON RENT
1. RENTING IS A GREAT CHOICE IF YOU WANT FLEXIBILITY.
2. YOU ARE NOT LIABLE FOR UNEXPECTED EXPENSES.
3. CREDIT REQUIREMENTS ARE LESS PRECISE.
4. YOU CAN LIVE IN A BETTER AREA.
#CONS ON STAYING ON RENT
1. YOU CAN'T MAKE CHANGES TO THE PROPERTY.
2. YOU HAVE NO CONTROL OVER ANNUAL RENT FLUCTUATIONS.
3. RENTING IS A WASTE OF MONEY.
4. YOU HAVE LIMITED HOUSING SECURITY.
: )
Changing lightbulbs is clearly the responsibility of the renter. However, an owner cannot simply raise the rent... plus, it is very hard to evict a renter. At least not where I live.
Depends on where you live. Where I live it's most common to have a 1 year lease. At renewal time your rent can increase.
Buy a small property, rent it out while you live in an apt
great video! I had to come back and watch again
I think owing is better but it depends on your location Because I live in the Caribbean an it's much cheaper to own than to rent overtime that is Especially if you have kids, Because one of the most fulfilling feeling is to be able to design your house/home
That’s a great question! It’s totally dependent on your personal situation.
The key to happiness in USA is education and ownership. Buy, buy, buy-unless you move alot. BUT, you can always rent out your property as you travel.
You need to update this information. Because in order to qualify to rent you need a 640 credit score, 3x the rent in income, No eviction or Not being in debt with previous landlord and must still be responsible for certain maintenance. To buy a house you only need a 580 credit score with 3-10% down and you can even get down payment assistance with a 640 credit score. Even in an apartment tenants are paying for water and garbage. If you have pets you have an extra deposit plus a monthly rent fee for your pet which is ranging $25-$100 a month extra. But the win win situation was renting because we only had rent with a power bill and/or gas bill. Now that's changed. If you have a certain breed dog you can just rent anywhere because most people don't allow certain breeds. Sad to say but there is more horrible landlords today than it was back in the day.
Buying is always the best option. Thank you Alux for making this video.
Definitly own the house you live in! 🙏
As on today... Renting is the best... bcoz we r only the guest on earth 🤣🤗
Woah rent is more expensive lately in a lot of areas...or on par with a mortgage. A lot of people like me are being screwed into renting because our finances aren’t there yet to be a homeowner but rent is as much as mortgage and it’s ridiculous. Rent should never be more than a mortgage in an area but that’s more commonplace than number four on renting admits to.
Hey alux you put a great content out there
Thank you for the videos It Helps
Right now in this recessionary environment it’s actually a perfect time for you to purchase a home, especially if you can refinance the mortgage and lock in an absurdly low interest of 2-4 percent. Will bank will essentially be paying you to borrow the money...why? Because you wouldn’t even have any incentives to pay off that debt since if your investments are generating 5 percent annual returns, it would be illogical to pay off the debt while you could have made way more by utilizing that money in your investments instead
Totally agree
Megnovo 🙌
Own what you can rent and Rent where you want to live.
I sold my home and when back to renting after being a home owner for many years. The headaches just weren’t worth it anymore when I considered I could take the money in my home and make it work for me in the form of rentals. Those rentals more than cover my rent and my income/net worth has now gone up because of that decision.
Would love to connect. This is exactly what I’m trying to do. Do you have an email ?
I'm pro-renting all the way. It makes it easier for me to invest the extra income I save by renting. Also I rarely stay anywhere more than 3 years, being in the military. Also, I can avoid house related stuff (HOA fees, do it yourself 500 dollar trips to Home Depot, appliances breaking, property taxes, lawn and shrub care etc). It just works out better for me. I do think however, if you're not moving for a long time, are good at flipping or fixing up homes, or if you are not good at investing in the stock market, then you should buy.
Great video! Can you please do Living in the City vs the Suburbs pros and cons. Thanks 😊
Im immigrant and i bought a house year ago and i never regret my purchase. Im so happy with my house eventho it is large money to put on, repair, fix it buy new stuff etc, but it is worth it. I can do anything with my house, planting flower garden, decor etc. And i still can go vacation without worry someone will break my door and stealing my stuff. I was rent an apartment and always sad every month because i have to pay someone (rent) and always worry someone will break my door and steal my stuff pr package.
🎉 congratulations
🎉 congratulations
SECURITY AND FREEDOM/FLEXIBILITY are equally important to me. However, at times like this, I am really grateful that we own the house we live in because the only thing that we need to spend our money on is food. I am also less anxious about the aftermath of this lockdown (or Covid itself) because even if we lose our jobs or earn a lot less than before, at least we have a sure place to stay in without having to worry about rental fees and possible eviction.
Having been military for 17 years, renting was our choice. However after 10 years of house checks we concluded we had zero to show for the roughly $110,000 the army had given us... for housing. So we bought an RV to live in. Simple small, not expensive, easy to pack up and move. We now own 4acres and are building a microfarm on it. Running of the Kiyosaki mindset, we are making sure the property will make money in some way so not to be an asset not a liability. So many property related income streams i am not going down that rabbit hole, just that for ownership, our goal is that it pays for itself.
I like your videos a lot. Would you do a video on investing in stocks vs real estate?
Really it depends on what you do for a living and the lifestyle you want to live. If your bouncing to different cities and your job requires travel then renting is the best. If your stable and stay in one area then buying is the better option.
I'd like to buy simply on the bases that i hate moving, I'm ready to find a play i want to live and live there for the next 10 to 50 years
Black Vito - Moneyology I agree and moving sucks. If you do not own a house, they can kick you out anytime they want and you have to pack your bags fast.
@@TrinhNguyen-sh4fj this it's true
I rented for 7 years and had feeling that buying is waste of money when you can rent for cheap price. After buying I realized I was so wrong. That wasn't apples to apples comparison. You get to live in big, better quality house of which if bought at a right price value is going up.
Like the video says there are a lot of pros and cons . I think it depends on your situation. But it is nice to own your own home if you are raising a family. Later on in life you can sell it and downsize when you retire or you can leave to your children. But in the meantime it is a lot of work maintaining it and upgrading when needed.
If you are going to live in the same area 5-10 years, what do you recommend? By the way, great content.
Good morning Alux, hope you're having a fantastic morning.
Renting seems like a better option and seems like less of a long term liability than owning a house.....I've always had this view but more especially from reading Rich Dad Poor Dad and now this video🙏🙏💯💯Thank You Alux
Buying all the way. I'd like to see how pro-renting folks are dealing with this whole COVID-19 situation.
Great video - but I have a question. I am a 21-year-old guy living in the UK and I was thinking to buy a property ( 2 bedrooms ) and then rent it out to max 4 people and gain money over the years form the rent. What do you all think? Pro? Cons?
Thank you!
Morning alux I hope your having a great week
Buying is the best option instead of paying rent we can pay that amount to banks as instalments & after some years or after the repayment of loan the property belongs to us but thats not the case in renting
For early retirees, rent. You can travel and not be stuck to home to maintain it, pay tax, insurance, etc.
Own because freedom, thank you!
In big cities they have 'drive til they qualify ' but that means higher commuting cost which might nullify any advantages of buying
Rent with option to buy... perhaps. In case crazy neighbors move near by or the view you love is now being obstructed by a huge unexpected construction project...or you get nervous because strange flooding happens the same time every year. You didn't know this when you bought, but if you're renting, your inconvenience is short lived when you can simply pay people to help you pack up and move to another nice place. Thanks for the information.
I love where I rent at in Chicago and you can do alterations if you want I live right by lakefront and it fits my personality I can stay here forever and not mention I hv a killer view of my city
I think buying is the better option when it comes to getting a house and living just a little bit below your means so u can overall save money and live somewhere decent all at the same time
I am a singlemom and renting with my son, I am debt free and dont wanna give my son the problems of loans
buying for me 100%
Every alux video Worth watching
Buying always better if you can effort it.
Renting because I loves traveling and I don't need to care about any properties. I'm minimalism
Much needed video
Improving a place you don’t own is never a good idea. A friend of mine and her husband made improvements on a house they rented with the landlord’s approval. They entered into an agreement. When the improvements were completed the landlord tried raising their rent a great deal but my friend reminded him of their contract. Then the landlord pulled all kinds of stunts to get rid of them and they eventually moved out. The landlord rented the apartment for almost double the rent.
We put down a 40% deposit on our house.
Not required, but did reduce the interest rate.
Renting a home is the first step of knowing to navigate around the environment of the places you have never been in your whole because you need to step up your games if you wanted to survive the unkind world, along with that you need to find friends you need for support, apply for insurances, on immigration policy and process it for citizenship in the long-term as you either work or study abroad. That's the experience I'll be doing very soon but I know there's more to it.....
Right now I’m renting and Im saving a lot more money than I’m renting if I had to choose I rather buy a property rent it out and make some extra income
Think growth.
Duplex, 4plex purchase.
Live in one rent out others .
The others end up paying for that property.
When built equity, pull out money to purchase the home you want to be in.
Now you own two properties.
Or
Use the first property to buy larger more profitable buildings , so your investments pay for your dream home.
2 + investment properties start paying for the extras (i.e. dream , home, car, trip)
There are videos here that explain the concept
Perfect topic !
From my own point of view buy is a better option, it will offer you the flexibility to focus on other project.
Renting is good, especially when you dont have to do any yardwork. That always has a high cost and time commitment, unless you dont care or have enough income to pay someone else to do it
I'd rather buy vacant land for homes and farms.
🇿🇦🇿🇦
I think it all depends on your situation
We own our house and are happy that it’s paid but houses can also be liabilities with all the expenses
I wouldn’t mind renting where I was because I saved up a lot and felt financially free but of course wifey wanted to buy a house
Ownership is always the preferred way, especially with all the low-interest mortgages available it would be an absurd decision to keep on renting a property. Look at it this way, you have to make payment for your rent, why not do it for a mortgage? This way you will have more stability and peace in the future. And all the changes you make on the property would benefit you rather than the landlord.
Remember house is only a structure, but a home is made with love and memories, those you don't want to let go of.
Me personally would definitely buy a home. I'm always on the move so I won't be able to stay in it but at least I'll rent it out and earn side income from it.