Joann Schermerhorn, Live Simple Eco Blog- Eco-Friendly Living (Live Simple Eco)

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Rainmaker
1,046,944
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Oh ABSOLUTELY! Someone who is only going to live in the area a short time - doctor doing a residency, or contractor on a short-term job perhaps. If they're not gonna stick around, why buy?
You gotta do the numbers to see what makes the most sense.
ALSO, in my area, SO MANY PEOPLE fall in love with our Spring and Fall weather, only to find that Summer can be brutal. I used to tell folks to rent for 6 months to a year before deciding.
And they would not listen, another agent happily sells them a house and then they come back in Fall or Spring LOATHE to spend another Summer here. With NO equity.
AND, if you're not fiscally responsible enough to care and feed a residence, you'll find out quickly that property requires maintenance and you're buying!
MANY people should be renters. That's why we have landlords! 

Sep 15, 2019 11:16 AM
Rainmaker
949,977
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Long term renting makes great sense for myself. It's more of a "time value of money" equation and a "leveraged lifestyle" (doesn't mean we cannot afford it, but we absolutely get more for our dollar) among other things. It may not make sense (I don't consider our home as an investment, but as a lifestyle expense) to many, but it works. BTW, I am an investor and do understand the benefits of home ownership (especially leveraged gains), I would agree that home ownership would benefit the great majority of everyone else.

The detailed "why" and "how" would take a book!

Sep 15, 2019 11:23 AM
Rainmaker
5,096,466
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Of course, renting can make sense... if you're not planning to be in a specific location for long, if you have low rental costs that are fixed for a long period of time and lower than a mortgage, if you don't have the credit to borrow, if you're not sure about your work stability, if you're not sure about where you really want to settle down, if you really don't want to undertake home maintenance.

Sep 15, 2019 12:24 PM
Rainmaker
1,185,635
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

Home owner ship is not for everyone.  It is a long term financial committment that does beyond the initial purchase.  How can you tell?  

do the research, find an expert to give advice, run the numbers.  get educated.  

Sep 15, 2019 12:12 PM
Rainmaker
2,374,774
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Absolutely Joann Schermerhorn . Even though I've never rented I have friends who don't want to take care of a yard or maintain a house and asking them to purchase one would be like imprisoning them. On the other hand we have all seen homes, and sometimes entire neighborhoods, where there is no "pride of ownership" so it looks like crap. Owning is certainly NOT for everyone.

Sep 15, 2019 02:47 PM
Rainmaker
4,555,011
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Renting versus owning/buying makes sense for many reasons. One size does not fit everyone or every situation. 

Sep 15, 2019 04:46 PM
Ambassador
3,339,834
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Peter Mohylsky and I were discussing this recently. I echo his comment. 

Sep 15, 2019 02:07 PM
Rainmaker
2,776,081
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The feeling of owning is up there with feelings to experience. For function, renting works. For long term investment buying works well. People who have careers in one place tend to buy and those that may move around put it off. If one buys, hold for at least 5 years to recapture costs of owning or keep and rent out? In the end the whole concept remains subjective. Have fun with your Real Estate experiences. It all stays here in the end...

Sep 15, 2019 01:35 PM
Rainmaker
756,085
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Owning is better unless you don't have the capital to buy, you are looking to live someplace for the short term or you can't qualify for a loan.

Sep 15, 2019 12:34 PM
Rainmaker
1,723,026
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

WAY too many variables to consider before answering your question

Sep 15, 2019 12:08 PM
Ambassador
5,204,770
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I'm late to the party and you have several great responses here, Joann. Good luck with whatever you decide!

Sep 15, 2019 09:07 PM
Rainmaker
802,769
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

It all depends on your situation I think.

Sep 15, 2019 05:54 PM
Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

JoAnn,

I think that Candice A. Donofrio gave you a fabulous response.  There are no absolutes in the universe, except doing what is absolutely right for you...A

Sep 15, 2019 12:17 PM
Rainmaker
1,840,366
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

sure, job instability is one. Not a good idea to buy a home & then have your company move out of town. 

Maybe you are blending households & are not sure where to go at the moment.

It will always end up (in my area) cheaper to buy than rent. I have at least 5 apps on my phone that can figure that out for me ... get one.

Sep 15, 2019 11:18 AM
Rainmaker
3,415,644
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

First do you qualify for a mortgage, second do you want to build equity for yoursel for landlord?

Sep 15, 2019 01:42 PM
Rainmaker
7,794,784
Roy Kelley
Retired - Gaithersburg, MD

If you are going to be in the same area for several years, home ownership is the easy way to build family wealth.

Sep 15, 2019 12:34 PM
Rainmaker
707,412
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

I would rent if I were only going to be at a location for a short time, or when I am determining whether or not that location is right for me.

Sep 15, 2019 11:39 AM
Rainmaker
5,583,173
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

if you can qualify for a purchase, renting makes no sense.... you gain NOTHING.

Sep 15, 2019 11:18 AM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Depends of your financial situation.

Sep 15, 2019 08:18 PM
Rainmaker
1,712,551
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

One siuze does not fit all.

Sep 15, 2019 06:40 PM
Ambassador
6,358,770
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

How long are you planning to stay?

Sep 15, 2019 05:28 PM
Rainmaker
1,498,718
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

If you're not planning on being there a while.

Sep 15, 2019 04:28 PM
Rainmaker
5,194,073
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Nina Hollander summed it up well!

Sep 15, 2019 01:18 PM
Rainmaker
908,918
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Yes. It's case by case. If you know you're getting tranferred from place to place every year for job, military, etc, renting probably makes more sense.

Sep 15, 2019 12:11 PM
Ambassador
3,099,222
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Home ownership is so individual. Some people are not meant to purchase a home, especially if they like to move around the country - a lot! My parents were those people. They bought a home back in the late 70s and turned around and sold it a year later and a half later because he was being transferred. Also, a homeowner becomes their own landlord (per se), the maintenance and upkeep should take priority with money set aside, otherwise a solid investment can go south quickly when problems are ignored. Owning a home has so many fantastic advantages for those who can afford it, for those unable - best to rent!

Sep 16, 2019 07:24 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Are you a maintainer?
Do you stay in one place for a long time?
Do you build relationship with neighbors instead of antagonize them?

If you said 'yes' to all three, then get your finances in order and buy.

 

 

Sep 16, 2019 05:03 AM
Rainmaker
1,390,113
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Renters are either people who are trying to clear up credit history or are only in an area for a short time - job uncertainties, empty nesters in between homes, newlyweds.

Sep 16, 2019 03:35 AM
Rainmaker
1,619,416
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Yes, but as you said every personal situation is different. If one is financially ready to commit to becoming a homeowner, why to keep renting? 

Sep 16, 2019 01:39 AM
Ambassador
5,033,577
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

It depends on your personal interests and financials, the time you plan to be in the area, and your needs now and in the future. There are some good responses here with more to think about.

Sep 15, 2019 09:50 PM
Rainmaker
1,531,496
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

The individuals short term vs. long term goals/plans effect it, their finances and the market affect it too.

Sep 15, 2019 04:47 PM
Rainmaker
4,854,437
Richard Weeks
Dallas, TX
REALTOR®, Broker

Some people do not like to have the responsibilities associated with home ownership.

Sep 16, 2019 04:25 AM
Rainmaker
2,171,261
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

How long do you believe you will be living somewhere is huge . Less than 3 years at location is almost impossible to recoup your initial outlay .

Sep 16, 2019 05:54 AM
Rainmaker
1,189,527
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

The obvious is, Are you there for the long term or the short term?

Can you qualify for a mortgage?

Do you want to be a maintainer?

Sep 16, 2019 10:27 AM
Rainmaker
898,068
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Yes, buying can be far more expensive than renting in some situations. You need to consider your age, financial resources, flexibility of moving options, how long you plan to be in area, etc. Hard numbers can help, do some calculations - take into account deposit, (opportunity loss if you invested same funds), mortgage costs, attorneys, inspections and so on vs straight rental payments. 

Sep 19, 2019 05:42 AM
Rainmaker
1,237,595
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In our area rent is way cheaper than owning. An AAPL developer told me and gave me a copy of spread sheet how much money he saved over last 20 years renting. 

Sep 16, 2019 11:08 AM
Rainmaker
5,850,437
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have spoken to some people that may get relocated within a year.  That wouldn't make sense.

Oct 03, 2019 05:15 PM
Rainmaker
1,296,186
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I rented until I could buy. That was the plan and I never wavered from it!

For my clients, they need to make a commitment to the area to buy. Short-term or no real plan is risky if you buy.

Sep 20, 2019 07:34 PM
Rainmaker
55,355
Krystin Mitchell, CPA CFE
KLSM CPA Firm, PLLC - Houston, TX
Strategic Accounting & Tax Solutions

Your lifestyle plays a big part in your choice to rent or buy. If you get bored easily, or move alot buying probably isn's the best option for you.

Sep 17, 2019 08:57 PM
Rainmaker
2,070,825
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Yeah, right, how ?

 

Sep 17, 2019 07:52 PM
Rainmaker
4,272,524
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

We deal with several service people who are deployed and are not sure how long they will be in our state. There is no return on investment...

Sep 17, 2019 03:55 PM
Rainmaker
1,537,922
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Renting makes sense if you are temporarily assigned somewhere due to work.  Then again, if it is a growing area, it might make sense to buy then rent it out for a few years after you leave, perhaps to some co-workers...

Sep 17, 2019 09:46 AM
Rainmaker
4,903,568
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Buying is a great investment where renting you are not getting any tax benefits.

 

Sep 17, 2019 09:37 AM
Rainmaker
464,564
Realtyna Inc
Realtyna - Newark, DE
WordPress Real Estate - IDX, RESO Web API, CRM

yes, definitely. 

Especially young, broke post-grad students who are non-commital to a certain city/neighborhood. Quite like myself :D 

Sep 17, 2019 08:17 AM
Rainer
17,033
Joann Schermerhorn
Live Simple Eco - Overland Park, KS
Live Simple Eco Blog- Eco-Friendly Living

Thanks for the input everyone!

I struggle with renting vs buying because my husband and I have contract jobs, don't have kids, and love to travel. There are pros and cons to both. When we owned we gained a lot of debt because of financial situations. I love renting because of having a landlord who takes care of maintenance and yard work, etc. 

We will continue to rent for the next few years and see how the market plays out. I am just so curious to read all the tips and advice on here.

Sep 16, 2019 11:22 AM