Rent or Own?

Question

So what does everyone think. Do you think you should own your own home first, then start investing into real estate? Or do you think its smarter to rent a place that is much cheaper then owning to save up funds? Ive heard people bring this up from time to time.

Jason Wheeler · Answer

I know successful investors on both ends.  Personally I think an investor should own.  But that is my story.  You can learn a lot from owning your own home.

Account Closed · Answer

It is a great time to buy homes.  Cheap interest and many good deals. IMO it is better to own than rent.

Jon Klaus · Answer

Remember that the mortgage on your personal residence is often the cheapest money you can borrow.

You might also buy a home that converts into a good rental when you are ready to move.

Travis Bontrager · Answer

You also get a tax advantage for the interest deduction. Make sure first that you can afford your home and then take into consideration the advantage you get from the tax deduction.

Kevin Kaczmarek · Answer

Invest in things that appreciate in value, rent things that depreciate in value.

J Scott · Answer

It really depends on your personal preference and your personal plan.  For some, renting for a while and using the credit/cash you have to purchase investments is the best route.  For others, getting into a personal residence is the right move.  And others decide to buy a multi-unit property, and move into one of the units, renting the others; this provides the best of both worlds (and the worst :).

Also, remember that that the costs of ownership are often similar to the costs of renting -- you have taxes, extra insurance, maintenance, capital costs, market risks, etc -- so neither is cut-and-dried the better decision in every situation.

Kwame B · Answer

if you can afford to obtain a mortgage or can negotiate yourself into a home you can afford. i always say own your home. if you rent you never receive that money you've spent paying rent. there are numerous benefits to owning tax deductibles, rebates, incentives, better voice in the community, etc....

Rent or Own?

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