Comments on: Renting vs. buying

By: bluntmoney

bluntmoney — Wed, 11 Mar 2009 18:44:54 +0000

Trevor, thanks! Glad you found me :)

Dana, thanks for the link.

Bill, those are good points as well. There are a lot of factors to consider…

By: Bill

Bill — Wed, 11 Mar 2009 18:41:52 +0000

When comparing renting versus buying, most people tend to think of the short term difference. They do not factor in the stability of a mortgage payment versus an ever increasing rent payment in the long term. In my area rents have increased by $800 to $1000 per month in the last 20 years, an average monthly increase of $40 to $50 every year. A 30 year fixed rate mortgage will have the same monthly payment as 20 years ago. There will be no monthly payment in another 10 years when the mortgage is paid off. Rent payments will continue indefinitely and most likely will increase indefinitely. People renting homes will most likely face several forced moves because their landlords decide to sell at very inconvenient times.

By: Dana

Dana — Wed, 11 Mar 2009 16:52:49 +0000

Dr Housing Bubble is a great site that does a lot of analysis on the myth that owning is better than renting. Some statistics are very interesting.

http://www.doctorhousingbubble.com/are-you-a-debt-slave/

By: Trevor @ Financial Nut

Trevor @ Financial Nut — Wed, 11 Mar 2009 16:39:00 +0000

Great points made here. I thought about buying a house about a year ago, and I’m glad I didn’t, as most of my decision was going to be based on that monthly payment, no every other little fee you can imagine.

I found you via Wisebread’s Top 100 Personal Finance Blogs. Congrats on making the list!