Comments on: Renting vs. Buying

By: MYM Series: Wall Street Bailout Explanation 2 of 4 | Milk Your Money

MYM Series: Wall Street Bailout Explanation 2 of 4 | Milk Your Money — Thu, 02 Oct 2008 02:38:21 +0000

[...] The Federal Government’s Role- The Federal Government has advocated homeownership for some time now. The idea has essentially been the cornerstone of the American dream. The Government practically begs you to purchase a home by offering tax incentives, Government backed mortgages, and various other programs designed to aid in purchasing a home. The reality is that many people simply should not purchase a home, even if on paper it’s somewhat affordable. (If you have time, read this article where we weigh the pros and cons of Renting vs. Buying). [...]

By: Friday link lovin’ | Sense to Save

Friday link lovin’ | Sense to Save — Fri, 01 Aug 2008 13:08:30 +0000

[...] Renting vs. buying at Milk Your Money [...]

By: Festive Link Love Carnivality #19 | Free From Broke

Festive Link Love Carnivality #19 | Free From Broke — Sun, 27 Jul 2008 11:42:11 +0000

[...] Renting Vs Buying by Milk Your Money. [...]

By: Frank

Frank — Fri, 25 Jul 2008 14:19:50 +0000

It’s strange to think about, but your house would actually have to more than double in value for you to get your money back when you sell it, right after it’s paid for. This is because the interest payments are more than the actual value of the home. Say you buy a $200,000 house, the interest paid in 30 years is $255,000. Making your total home purchase $455,000.

By: Ben

Ben — Fri, 25 Jul 2008 13:24:08 +0000

@ Tiffanie: I know exactly what you mean…The big idea about buying is that all the money you spend on a mortgage you could theoretically get back when you sell. Its riskier but the reward is more of course.

Some of the real estate “gurus” you see on TV say that if you live in a house for the minimum of 2 years (to avoid capital gains on reselling) and increase the value by DIY remodeling, you can get your dream house paid for in something like 10 years. A tantalizing prospect…

Frank is right though: now is not the time to sell and you are subject to market fluctuation that can hamper progress.

By: tiffanie

tiffanie — Fri, 25 Jul 2008 05:06:02 +0000

i’ve been renting since i was 18 (so 6 years now) and i’m getting so tired of it! i will admit that i love the low price of $500 rent for a 2 bedroom apartment (and that’s including the $20 cat fee + heat & water are included). so i know it’s what’s best for us right now, but I can’t help but think how much we’ve “wasted” in rent.