Mortgage Vs Renting

Sigma Force

I'm starting to think perhaps many people incl. ourselves are bonkers to be burdened by a mortgage, have started to ask ourselves what are the actual benifits of a mortgage.

Lets face it ok at the end of the day you eventually own your own home but for many it's 30 years away and at the end ok you will have a property worth something but in the money you could save by renting you could also have a nest egg put by.
As for passing a property on as inheritance that nest egg could be used for that either and life insurance can always be gotten seperatly if worried about a partner/husband/wife or kids if something should happen to you.

A mortgage can also be difficult to get out of especially if you are trying to sell and move on but can't because of the market.

With renting you can move on eventually even if you have a long term lease you know that it's going to be up in a couple of years. So if you don't like one area or you want to shop around for cheaper rent you can do you aren't tied to one area forever.

So what's your opinion on renting vs mortgage the only posative things I can think of is 1. More freedom to allow pets into your home as some landlords are dead against it. 2. If you really love an area so much you want to settle there and keep it as a family home for generations.

But with renting with compramise on location a bit eg renting slightly out of a town you can rent somewhere that allows pets and just because you may love an area and want it to be the family home your kids could grow up and fek off and not want to know lol.

Would be interesting to hear any arguements for and against it.

We have a choice (if we can ever sell this place) of renting or buying, and am starting to sway towards renting, after all the bank in the long term will get almost the price of our mortage on interest alone eg so far paid in 30 K and 25k of that went on interest.

If renting you also don't have the cost of house insurance etc.

johndaman66

I can see the argument from both sides to greater or lesser extents. In an ideal world where house prices mimic inflation, interest rates are not crippling and your clear intention is to settle down in the area in question longterm taking a mortgage may perhaps be the best option for you. However, it is certainly not an option you should take lightly and one where financial prudence should be the order of the day. You, sometimes along with your spouse/ partner are committing to up to and over 30 years of mortgage payments. Many will be very old people when such mortgages are finally paid off and in some cases their kids will end up paying the mortgages for christ sake:eek: On a side note I think a 30 year or more mortgage is lunacy, plain insane and I would suggest that if one has to go with such a longterm mortgage they clearly cannot afford the property in the first place. I would suggest that one applies a formula such as 3 to 5 (5 being absolute maximum) mulitiples of their annual income to ensure the property is affordable to them before buying. Furthermore I think one should look at a universally well recognised formula such as rent multiples to justify the price in the first place before they buy regardless of their income.

People do let their emotions run away with themselves when it comes to houses...I don't believe being able to paint the kiddies room the colour the kiddies want it is a good enough reason to justify buying over renting. I do know a number couples be they married or not with young children who are renting longterm and never have any major problems. Renting is most probably ideal for younger people starting out on their career paths. Chances are probable that they may change job or be reassigned to a different part of the country in their current jobs. A change of career path may require one to return to college in which case keeping up mortgage repayments could prove difficult. This may well be the case for older people for that matter. Remember there is no such thing as a job for life anymore. Renting gives one added freedom and mobility.

Above are just some of my thoughts thrown together in a somewhat haphazard and not very well thought out order as you can see! It is a subject that can be analysed much further.

If you don't mind me asking I assume you are gone interest only on your mortgage, 25k of your total 30k repayments being solely interest? Not committing you to answer and will respect your privicy.

danbohan

Guineapigrescue wrote: »

I'm starting to think perhaps many people incl. ourselves are bonkers to be burdened by a mortgage, have started to ask ourselves what are the actual benifits of a mortgage.

Lets face it ok at the end of the day you eventually own your own home but for many it's 30 years away and at the end ok you will have a property worth something but in the money you could save by renting you could also have a nest egg put by.
As for passing a property on as inheritance that nest egg could be used for that either and life insurance can always be gotten seperatly if worried about a partner/husband/wife or kids if something should happen to you.

A mortgage can also be difficult to get out of especially if you are trying to sell and move on but can't because of the market.

With renting you can move on eventually even if you have a long term lease you know that it's going to be up in a couple of years. So if you don't like one area or you want to shop around for cheaper rent you can do you aren't tied to one area forever.

So what's your opinion on renting vs mortgage the only posative things I can think of is 1. More freedom to allow pets into your home as some landlords are dead against it. 2. If you really love an area so much you want to settle there and keep it as a family home for generations.

But with renting with compramise on location a bit eg renting slightly out of a town you can rent somewhere that allows pets and just because you may love an area and want it to be the family home your kids could grow up and fek off and not want to know lol.

Would be interesting to hear any arguements for and against it.

We have a choice (if we can ever sell this place) of renting or buying, and am starting to sway towards renting, after all the bank in the long term will get almost the price of our mortage on interest alone eg so far paid in 30 K and 25k of that went on interest.

If renting you also don't have the cost of house insurance etc.

interesting line of though , think one many irish will have in future , good website http://www.ronanlyons.com/2010/04/20/your-very-own-rent-or-buy-calculator/

edellc

i've been renting since 2000 and have positive and negative views on it
positive

1. can move yearly if you like
2. dont have to pay for fixing things that are broken
3. no huge debt with mortgage

negative

1. rental market has been way over priced for what you get ( i didnt benefit from celtic tiger so could never afford anything spectacular)
2. your stuck with decoration of the place
3. dealing with landlords can be a pain in the ar**
4. you feel like a nomad and sometimes just want a place to settle down in forever
5. worry about dragging a child from pillar to post

okay just doing that has made me hate renting i want a mortgage tied round my neck, i want to be able to decorate to my liking to buy furniture that i like that is mine to not have to clean other people crap when i move in somewhere to not have to deal with landlords and feel sick at giving them rent each month when i know that a mortgage would cost me less but to not have a penny left to save for a deposit or any kind nice relative to help me out it sucks
i'd buy any day of the week over renting

quozl

I'm in the renting is better camp currently. Things may change in a few years.

If I lose my job, I don't have to worry about a mortgage. I could even move in with family and have no rental costs if it was a major crisis.

If I lose my job I can go wherever I can get another job, without having to worry about finding someone to rent my property to, and the shortfall that would involve. I can even emigrate.

Someone else is holding the depreciating asset.

I can afford to rent a much nicer place than I could currently buy.

So, while it's not perfect, I'm very glad to be renting.

I've had no problems with landlords yet, touch wood, but that may just have been luck. I think most landlords are reasonable, and you can get a bit of an idea for some of the dodgy ones at least when you're looking for a place and just pass on it.

AARRRRGH

Id say it depends where you are in life. If you have school going kids and need to rent somewhere bigger and are governed by proximity to both school and work, you would b in a different situation to a young free and single person.

I bought my house and had it paid for in 10 years. I travel a lot with my job at the moment so Ive been renting it out now for a good few years for a nice profit and living in a 2 bed mews at the back when i am home.

But since im settling down and moving to a new job where I dont have to travel we'll be moving back into the house shortly.

Im glad I dont rent now and dont have to pay a mortgage anymore, but I can see benefits to renting if it suits your particular situation too.

Its not black and white at all.

Bringthethunder

AARRRRGH wrote: »

Id say it depends where you are in life. If you have school going kids and need to rent somewhere bigger and are governed by proximity to both school and work, you would b in a different situation to a young free and single person.

I bought my house and had it paid for in 10 years. I travel a lot with my job at the moment so Ive been renting it out now for a good few years for a nice profit and living in a 2 bed mews at the back when i am home.

But since im settling down and moving to a new job where I dont have to travel we'll be moving back into the house shortly.

Im glad I dont rent now and dont have to pay a mortgage anymore, but I can see benefits to renting if it suits your particular situation too.

Its not black and white at all.

Ok you have your mortgage paid and your loaded get over yourself.

seenitall

Bringthethunder wrote: »

Ok you have your mortgage paid and your loaded get over yourself.

Meeeeaow!

The_Conductor

Calm down guys.....

KillerKity

My goal in life has always been to own my own house (I'm in my early 20's and saving). I've been thinking lately why exactly is this. I mean, my parents both had good jobs but were stressed most of their married life paying for a mortgage.

I'm renting at the minute but moving on soon due to work and a few other things. With a mortgage this wouldn't be possible! Yes sometimes dealing with landlords can be annoying but if you don't like it then move! I think as being Irish, we have this weird desire to own our property to give ourselves stability and something to pass on. Putting aside the stress it's something that appears to be built into us.

I still fully intend on buying my own place but might wait another 10-15 years or so until I have a substancial amount of savings.

AARRRRGH

Bringthethunder wrote: »

Ok you have your mortgage paid and your loaded get over yourself.

Very childish comment.

edellc

KillerKity wrote: »

Yes sometimes dealing with landlords can be annoying but if you don't like it then move!

oh the joys of being a nieve 20 year old with who hasn't lived through the greedy years of the celtic tiger who has no responsibilities and can afford to save but im sure mammy and daddy will help you when then time comes to purchase your own home for those of us who don't have such luxuries yes we can move but no matter where you go you still have to deal with landlords silly girl

KillerKity

edellc wrote: »

KillerKity wrote: »

Yes sometimes dealing with landlords can be annoying but if you don't like it then move!

oh the joys of being a nieve 20 year old with who hasn't lived through the greedy years of the celtic tiger who has no responsibilities and can afford to save but im sure mammy and daddy will help you when then time comes to purchase your own home for those of us who don't have such luxuries yes we can move but no matter where you go you still have to deal with landlords silly girl

Excuse me? Could you please refrain from stupid judgemental comments? Firstly, never once did I state that "mammy and daddy" would be helping me out. Not that it's any of your business but they don't help me financially and they won't as I'm an adult and can look after myself. It's not my fault if you got yourself into a mess and are bitter towards the world :P

edellc

oh so im to blame for the mess the government got the country into and for the situation that i and many others find themselves in due to this...im the one that made my job disappear, and over inflated rents for the last 10 years along with the cost of living???
im not bitter i have made the best of the cards that have been dealt to me....when you get some more life experience and its kicked you in the balls a few times then maybe eveything wont be so black and white

KillerKity

You might want to calm down! Your problems are nothing to do with me and you have NO IDEA of my personal circumstances. I caused none of problems nor did I make any reference to the goverment or your job situation. Please stop lashing out at me just because I seem to be younger than you. Again, I can't help that. Like you I'm doing the best I can in life and trying to save (which isn't much) so MAYBE by the time I reach my mid 30's I'll be in a position to afford my own place. And yes life has kicked me in the balls but I'll stress again I'm doing the best I can for my future

irishguy

Guineapigrescue wrote: »

I'm starting to think perhaps many people incl. ourselves are bonkers to be burdened by a mortgage, have started to ask ourselves what are the actual benifits of a mortgage.

Lets face it ok at the end of the day you eventually own your own home but for many it's 30 years away and at the end ok you will have a property worth something but in the money you could save by renting you could also have a nest egg put by.
As for passing a property on as inheritance that nest egg could be used for that either and life insurance can always be gotten seperatly if worried about a partner/husband/wife or kids if something should happen to you.

A mortgage can also be difficult to get out of especially if you are trying to sell and move on but can't because of the market.

With renting you can move on eventually even if you have a long term lease you know that it's going to be up in a couple of years. So if you don't like one area or you want to shop around for cheaper rent you can do you aren't tied to one area forever.

So what's your opinion on renting vs mortgage the only posative things I can think of is 1. More freedom to allow pets into your home as some landlords are dead against it. 2. If you really love an area so much you want to settle there and keep it as a family home for generations.

But with renting with compramise on location a bit eg renting slightly out of a town you can rent somewhere that allows pets and just because you may love an area and want it to be the family home your kids could grow up and fek off and not want to know lol.

Would be interesting to hear any arguements for and against it.

We have a choice (if we can ever sell this place) of renting or buying, and am starting to sway towards renting, after all the bank in the long term will get almost the price of our mortage on interest alone eg so far paid in 30 K and 25k of that went on interest.

If renting you also don't have the cost of house insurance etc.

It depends on your circumstances really. If you can afford to buy a property that suits your needs in the long term and in an area you like then I think you should buy.
I purchased a house in an area I really like and I could stay here for the duration of the mortgage quite easily. The mortgage (At the moment) is a bit less than it costs to rent the same house. Taking interest relief and renting a room into consideration we are paying less than we were for rent (for a much smaller/not as nice property).
In the longer term your house should appreciate at near the rate of interest you are paying which negates the interest payments, of course you have all the other costs of buying/maintaining a property too.

Unfortunately/Fortunately the tax/legal system in Ireland is skewed towards house buyers. Under the current system I wouldnt like to to rent for the rest of my life, now some of this may change in the future. With the changes in tax structures (property tax/mortgage interest relief/stamp duty) this may make purchasing property less attractive, but there is still the poor legal rights of tenants which makes it unattractive to rent long term.

So it depends if you think the market is going
It does tie you down to staying in that area

Also if everyone is telling you its a good time to buy/sell then its probably the worst time.

Bringthethunder

AARRRRGH wrote: »

Very childish comment.

No you are childish and i hope your house sinks.

billybigunz

AARRRRGH wrote: »

Id say it depends where you are in life. If you have school going kids and need to rent somewhere bigger and are governed by proximity to both school and work, you would b in a different situation to a young free and single person.

I bought my house and had it paid for in 10 years. I travel a lot with my job at the moment so Ive been renting it out now for a good few years for a nice profit and living in a 2 bed mews at the back when i am home.

But since im settling down and moving to a new job where I dont have to travel we'll be moving back into the house shortly.

Im glad I dont rent now and dont have to pay a mortgage anymore, but I can see benefits to renting if it suits your particular situation too.

Its not black and white at all.

You got lucky so you don't have much of an insight.

The_Conductor

Bringthethunder wrote: »

No you are childish and i hope your house sinks.

1 week ban for personal abuse.

Regards,

SMcCarrick

The_Conductor

edellc wrote: »

KillerKity wrote: »

Yes sometimes dealing with landlords can be annoying but if you don't like it then move!

oh the joys of being a nieve 20 year old with who hasn't lived through the greedy years of the celtic tiger who has no responsibilities and can afford to save but im sure mammy and daddy will help you when then time comes to purchase your own home for those of us who don't have such luxuries yes we can move but no matter where you go you still have to deal with landlords silly girl

1 week ban for personal abuse.

Regards,

SMcCarrick

The_Conductor

Guys- if you disagree with what someone else posts- refute the post factually, without attacking the poster. If you see a problematic post- use the 'report post' function (the exclamation mark in the triangle under the person's username) and one of the forum moderators will deal with it as soon as possible.

Its not that difficult to remain civil to each other........

AARRRRGH

billybigunz wrote: »

You got lucky so you don't have much of an insight.

Luck had nothing to do with it.
Anyway isnt the thread about whether its better to rent than buy.
If you know what you are doing, you can take either. Take whatever suits you at the time, but plan ahead for every eventuality.

billybigunz

AARRRRGH wrote: »

Luck had nothing to do with it.
Anyway isnt the thread about whether its better to rent than buy.
If you know what you are doing, you can take either. Take whatever suits you at the time, but plan ahead for every eventuality.

Yes it had. If you were ten years younger would you have had the same outcome.

You were born at the right time so that when you did buy a house the immediate years were followed by massive inflation including wage inflation.

planetX

renting sucks.
most of my friends mortgage payments are less than my rent. My child has never known what it's like to have a home, to decorate his bedroom, to have swings in the garden. We have to keep our pets hush hush. All in all it's very bad for mental health to live this way long-term. I don't recommend it.

halkar

1- I have many friends and neighbours with mortgages. They would never think of renting. They have families.
2- I also have many friends renting. They are young, happy enough to share to have few extra yoyos for the weekends. They are happy to rent.

One day 2 will move to area of 1 and will stop renting .

The real value of your home is your own valuation not the estate agents or markets.

dan_d

What I'm seeing here is that the grass is greener on the other side of the fence...regardless of which side of the fence you're on.
Both arguments have merits, but in the end it's down to the individual I suppose.

ei.sdraob

KillerKity wrote: »

My goal in life has always been to own my own house (I'm in my early 20's and saving). I've been thinking lately why exactly is this. I mean, my parents both had good jobs but were stressed most of their married life paying for a mortgage.

I'm renting at the minute but moving on soon due to work and a few other things. With a mortgage this wouldn't be possible! Yes sometimes dealing with landlords can be annoying but if you don't like it then move! I think as being Irish, we have this weird desire to own our property to give ourselves stability and something to pass on. Putting aside the stress it's something that appears to be built into us.

I still fully intend on buying my own place but might wait another 10-15 years or so until I have a substancial amount of savings.

Thats the right attitude, fair play

but be careful where you invest your money, I wouldn't trust any of the Irish banks with a cent since they are all insolvent (so is the state making their guarantees worthless) and you might get a nasty surprise one day...

unklerosco

planetX wrote: »

renting sucks.
most of my friends mortgage payments are less than my rent. My child has never known what it's like to have a home, to decorate his bedroom, to have swings in the garden. We have to keep our pets hush hush. All in all it's very bad for mental health to live this way long-term. I don't recommend it.

I think u just need to find the right place/landlord.. Our rent is less than any of our friends/siblings mortgages. Our landlord doesn't mind what we do with the house once we don't paint it fluorescent orange or something. It's ours to do what we want with... Sure, whats the point as it's not our house.. Well, it mightn't be our house but for now and the next few years it's our home n we want to make it one...

planetX

unklerosco wrote: »

I think u just need to find the right place/landlord.. Our rent is less than any of our friends/siblings mortgages. Our landlord doesn't mind what we do with the house once we don't paint it fluorescent orange or something. It's ours to do what we want with... Sure, whats the point as it's not our house.. Well, it mightn't be our house but for now and the next few years it's our home n we want to make it one...

It's not easy though, you don't really know what a place is going to be like till you move in - eg the crappy heating where I am now. You don't get to try out the boiler for a few days before you sign the lease. You might be allowed to decorate etc, but you have no control over things like insulation, type of heating. You can't plan for years ahead because landlords lie, and leases end. It makes me really depressed, it's not how I'd planned to bring up my child.

m5ex9oqjawdg2i

billybigunz wrote: »

You got lucky so you don't have much of an insight.

What?

Say he didn't spend money like most do, say he didn't buy new clothes every 3 months, say he doesn't smoke or drink, say he doesn't socialise much, say he doesn't over spend on food and other sundries, say he is extremely good with money, all hypothetical as I have no idea who AARRRRGH is, or what he is like.

but just say all the above is true, it is very easy to pay off your mortgage a lot sooner than the 30 or 40 years it is taking other people.

AARRRRGH wrote: »

Luck had nothing to do with it.
Anyway isnt the thread about whether its better to rent than buy.
If you know what you are doing, you can take either. Take whatever suits you at the time, but plan ahead for every eventuality.

People don't like the idea that you paid off your mortgage in 10 years, they dislike the fact that you are not debt free (as regards mortgage at least) and own your own home, they don't like to see you getting along, they HATE that other people do better than them

planetX wrote: »

renting sucks.
most of my friends mortgage payments are less than my rent. My child has never known what it's like to have a home, to decorate his bedroom, to have swings in the garden. We have to keep our pets hush hush. All in all it's very bad for mental health to live this way long-term. I don't recommend it.

I don't have many friends that own houses, we are all in the same boat really and I am not sure if any of them will buy a house anytime soon. Our rent is a lot more than a mortgage, if we had a mortgage we would have a lot more expendible income, but the banks say we cannot afford the mortgage. Why can he not decorate his bedroom? Why can't you look for a home that has a garden? Why can't you put swings in the garden? Not recommending it to other people based on your own misfortune is not good.

planetX wrote: »

It's not easy though, you don't really know what a place is going to be like till you move in - eg the crappy heating where I am now. You don't get to try out the boiler for a few days before you sign the lease. You might be allowed to decorate etc, but you have no control over things like insulation, type of heating. You can't plan for years ahead because landlords lie, and leases end. It makes me really depressed, it's not how I'd planned to bring up my child.

The landlord has to have everything in working order, what's wrong with the boiler? He needs to get it fixed and soon too if it's cold. You check out all these things before you move into a house, type of heating, energy rating, can you decorate etc etc. Plenty of houses out there you can rent, landlords are more lax now that they need to get in people to their accomodations.

KillerKity wrote: »

My goal in life has always been to own my own house (I'm in my early 20's and saving). I've been thinking lately why exactly is this. I mean, my parents both had good jobs but were stressed most of their married life paying for a mortgage.

I'm renting at the minute but moving on soon due to work and a few other things. With a mortgage this wouldn't be possible! Yes sometimes dealing with landlords can be annoying but if you don't like it then move! I think as being Irish, we have this weird desire to own our property to give ourselves stability and something to pass on. Putting aside the stress it's something that appears to be built into us.

I still fully intend on buying my own place but might wait another 10-15 years or so until I have a substancial amount of savings.

Fair play to ya I have the same goal but instead of a house, I want a boat and a nice car to pull the boat. I know renting an apartment/house can be very expensive, I find it to be more stress free. I would have serious problems having a 300K loan looming over my head for 40 odd years, anyway, I wouldn't get that much, and what I would get wouldn't get me the house I would want (which is very moderate).

music.babe75

Having rented for 6/7 years, I think the disadvantages of renting are:

• Having to move when the lease is up, if landlord decides to sell etc.....no stability.
• Not being able to decorate / do gardening etc. Even if the landlord agrees you might spend a fortune and then landlord decides to sell etc so its a waste of money
• Dependent on landlord to make repairs etc in a timely manner i.e having to listen to excuses "I can't get a plumber till next month" etc etc

I think most people just get to a certain age and want a place they call home. I wanted to put down roots and not be waiting for the landlord to ring to say you have to move, I'm selling. I wanted a place that I can put my own stamp on etc. I envisaged myself and the OH in our 50s or 60s and still renting away in 2nd rate houses / apartments etc and thats not what I wanted out of life. I want a place that I can shut the door in the evening and say yes, this is mine (well, the banks for the moment:)) and paint the walls purple if I want

We found a place I can envisage being in for the rest of our lives and yes there is the worry of paying the mortgage sometimes but you have to pay the rent to your landlord as well.....