Pro's and Con's

Discussion in 'General Discussions' started by ATP, Feb 5, 2015.

  1. Hi guys. I wanted to make a fun little list to look at. Do you have a list? - ATP

    Mortgage Payments vs. Rent Money

    Mortgage Payments – Living in a nice neighborhood

    Mortgage Payments – You pay double in interest
    Mortgage Payments – Roofing, plumbing, electric, pavement, kitchen can go bad
    Mortgage Payments – Stuck with bad neighbors
    Mortgage Payments – Must cut lawn/shovel snow

    Rent Money – Maintenance fixes everything
    Rent Money – Do not have to cut lawn or shovel a lot of snow

    Rent Money – Rent also goes up the longer you live there
    Rent Money – Living in a bad neighborhood
    Rent Money - Stuck with bad neighbors
  2. You forget one - with renting, when it is all done, you still own nothing.
    Major likes this.
  3. Well, technically you don't own anything anyways. "They" own you. - George Carlin
    Abdicate likes this.
  4. In addition to what was already posted...

    Renting a home:
    Unable to do what you want with the land/home.
    Payments continue endlessly.
    Neighbors come and go.
    Rent can/will increase.
    Can be evicted.

    Buying a home:
    Do as you please with the land/home.
    Payments end in 15 or 30 years (unless you take out a second mortgage).
    Neighbors are usually around a lot longer.
    Property value can fluctuate.
  5. I like the one about the payments ending after a period of time. Then you can do something else with that money.
  6. Another pro would be that mortgage payments tend to take less of a percentage of your income over time.
    A huge con would be if the property next door gets sold as a rental property.
  7. This one got me thinkin'..

    Mortgage Payments – Roofing, plumbing, electric, pavement, kitchen can go bad $$$
    Rent Money – Maintenance fixes everything
  8. You don't get to choose the new kitchen or bathroom or if there is insulation under the roof.
    If the hot water service goes south, you could have a few cold showers before the land lord gets around to replacing it too.
  9. Well, it's either wait a few days at apartment or get a hotel..
    or pay thousands of dollars on your home that you happily own. (y)
  10. Why isn't equity even mentioned?
  11. And when you buy a home the interest and property insurance is tax deductible.
  12. Buying a home - Pros:
    No need to worry about noise or staying up late or having friends visiting at midnight
    No need to worry about noise from neighbors
    Enjoying barbecue in summer
    Planting garden and doing things outdoor as per our taste
    Good physical exercise in snow blowing and lawn mowing.
  13. Mortgage is French for "Pay 'til you die" :p

    Seriously though it does mean "dead pledge"...
  14. As long as you have to pay property tax (or lose your home), you're renting. All it means to pay off a mortgage is that the rent is greatly reduced... that is, until the government decides to raise it.

    Another con of "owning" is that you can't easily move due to sudden job change or other unforeseen circumstances.

    The price of rent includes all the costs the landlord has plus a profit, so unless the house is paid off, the landlord has to charge what you'd be paying for a mortgage, plus repairs, plus taxes, plus profit.

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