Rent or buy a home?

Question

I'm 24 years old, and I'll soon be making the decision of either buying or renting a home. I'm single, no kids, no wife, just me. I have about $2000 in my bank account. The only time I've moved out was with a friend for about 6 months and have been back home ever since. I plan on living in the area for some time. I have a secure income. I've been looking for places to rent, however it seems more expensive to rent than it is to buy. This is completely new to me and am looking for advice as to what direction would be best. Thanks!

Answer 1

Seeing what kind of loan you will quality for is the key to whether buying is a reality or not. 2k is not enough money youre gonna pay that in the earnest money deposit. I'd advise you to take a year to save...a complete year.

I bought a place when interest rates came down. Now is an excellent time to buy....and I've been around over 50 years and have owned a few homes and rented many. Buy a starter house and get roomates would be my suggestion to you. It will help until you start makeing the bigger money around age 35-40. My first house, I used to pay extra principle each month, when I bought my 2nd home, I already had like 50K in equity, so I was able to pay cash with all the other money I saved. My second house was all messed up, it took me 3 years, and about 30K to renavate it. But, it was all so worth it. I'm good for the next 15 years on repairs and upgrades. Buying a home while young is a decision you will NEVER regret. My monthly bills now only come to about $400 since I'm paid off, the rest of the check is mine to save or spend. I assure you....esp when your old and have little money. (My first house at 18, I had 4 roomates to help pay rent and other bills and a 20 year old car and it was a wonderful time) Think of your first home as a stepping stone. Congrats and enjoy the journey, it's exciting move!

Answer 2

I had to rent due to double digit interest rates in the 80's......but when I finally got serious about life, I bought a place when interest rates came down. Now is an excellent time to buy....and I've been around over 50 years and have owned a few homes and rented many. Buy a starter house and get roomates would be my suggestion to you. It will help until you start makeing the bigger money around age 35-40. My first house, I used to pay extra principle each month, when I bought my 2nd home, I already had like 50K in equity, so I was able to pay cash with all the other money I saved. My second house was all messed up, it took me 3 years, and about 30K to renavate it. But, it was all so worth it. I'm good for the next 15 years on repairs and upgrades. Buying a home while young is a decision you will NEVER regret. My monthly bills now only come to about $400 since I'm paid off, the rest of the check is mine to save or spend. I assure you....esp when your old and have little money. (My first house at 18, I had 4 roomates to help pay rent and other bills and a 20 year old car and it was a wonderful time) Think of your first home as a stepping stone. Congrats and enjoy the journey, it's exciting move!

Answer 3

Dude, $2000 no where near enough money to buy a home or even a crappie apartment and if you do rent, it's only going to last for about 4 month's anyway ($500/month estimate, if your lucky) let's hope your income is stable enough to pay for the rest of the month's.



Sry dude I didn't mean to sound harsh there, unless you made a type error and you've meant 20K, in that case I still recommend that you rent, I doubt you will be able to buy a home for 20K m8, even small and if your living on your own, I recommend that you rent an apartment out instead because it's cheaper and it's small, as you are on your own, you won't need load's of space.



Because if you were buying an apartment you will need to pay a month's deposit like if you were renting, if you are buying an apartment and you need to pay the same amount again but upfront + the original price of the apartment. And there aren't many good apartments that are worth 20K depending on the area you are in and idk any apartment what are selling for 20K so good luck, you can find much better apartments just up for rent almost anywhere else.



Overall:



House's are way beyond you budget m8.



I recommend that you rent out an apartment instead.

Answer 4

then it's silly to rent a home or buy a home.

And certainly $2,000 is not enough for a 20% downpayment on a home.

Sure it seems to you more to rent than to buy and it's probably the city you live in. I'm paying $611 for rent (and everything is supplied like sewer, water, pest control, maintenance, garbage removal, pools, tennis courts, pristine upkeep, etc.) while you'd probably be paying over $1000 to rent a home and may be expected to do some things around the house.

The economy has been bad, and in fact still is no matter that the news says, and rates are low but there's been so much flooding and natural problems that I'd suggest you not buy.

Answer 5

2K will not get you into a home. You need a substantial down payment plus a slush fund for emergencies. And insurance and property taxes can be monsters depending on where you live. When you do buy, look for first time home buyers information. Often it helps give you a good deal. But please wait until you have enough funds for emergencies. No job is totally secure and neither is your health. Save up enough for an ample down payment that allows you to take a 20 year loan and no more. I'd also advise you to rent for a while and learn to be on your own. It will help you decide where you really want to live that has all the amenities you want. I moved from a large city to a small town that doesn't have all the goodies. I would so like to have stores and restaurants within walking distance instead of having to drive across town to get some groceries. Try renting in an area you can afford and would like to live in.

Answer 6

2

Answer 7

You’re in a good place right now, you’re young and you have secure income, not guaranteed income secure for the moment.

Whether you buy a home or decide to rent is pretty much up to you.

If you decide to buy a home, upon signing onto a mortgage, you’re saying that you will have the resources, consistently, to cover that mortgage during it’s duration.

Mortgage does not include things like utilities and property tax.

With a home you have the option to re-decorate and make changes as you please, with the understanding that technically, you do not own the home until the mortgage is paid in full. Another thing people tend to forget is, the mortgage is for the home, not the property on the home. If you don’t pay the property taxes, the home can still be confiscated to cover unpaid taxes, just a thought.

I remember, a young man I met many years ago, he bought the property and build the home on the property, he was smart, at the time he was a student to become a pharmacist, a secure occupation.

With renting, you own nothing, no obligations, nothing to fall back onto and most important, your neighbors are a lot closer to you. You share the walls, the floors and the ceilings with your fellow tenant. A big con is apartment buildings in this country has no regulations requiring insulation nor soundproofing of any kind. If you look at the many apartment reviews, you will see a steady stream of “paper thin walls”, water damage, etc. But with apartment living, if something goes wrong, you contact the office and someone will take care of it for you, with a home, it’s up to you to take care of maintenance issues.



I know that I provided a lot of information, but whatever decision you make, you have to live with it. Take you time in your decision and check ALL of your options. Listen to your gut instinct and ask questions.



I hope this helps



D

Answer 8

2

Answer 9

With only $2000. you barely have enough to pay first and last month's rent and the security deposit.

As far as buying, the closing costs alone could be 3 times what money you have. You need about 20% of

a down payment in order to be approved for a mortgage.

Stay at home and begin some serious saving. Maintaining a home costs a lot more than renting.

Common sense, not your heart, is the only way to accomplish your wish to own a home.

Answer 10

the decision really depends on what you plan to do over say the next 5 years



If you plan to stay in 1 place then generally buying is better



If you dont then renting is better



(one thing to bear in mind if you buy - you can always rent out rooms and share utility bills

Years ago a girlfriend shared a house with 2 others and they all shared utility bills - one of them was buying the house

the rent the 2 renters were paying was more than the mortgage on the house

that meant the buyer was living rent free while the mortgage was being paid for her AND she only had to pay 1/3 the costs of living there)



Course - this has nothing to do with whether you can afford to buy.



Another thing to consider is WHERE you buy (if you are renting it dont matter)



If you can buy in an area that is becoming (or likely to become) more popular then you will see a hgher increase in resale value than anywhere else (obviously - if you buy in an area thats getting less popular then its value is likely to decrease)

Answer 11

Seeing what kind of loan you will quality for is the key to whether buying is a reality or not. 2k is not enough money youre gonna pay that in the earnest money deposit. I'd advise you to take a year to save...a complete year. I'm not a fan of completely depleting your savings so if you save 15k in a year I'd only come to the table with 8k-10k for a down payment. Sometimes the money in your bank is worth more than giving it away for 30 bucks a month off your mortgage. It definitely smarter to buy a home but most people can't do to their financial inconsistencies and their bad credit. You have good credit and decent income you are a idiot if you rent. Bought my first home at 27 in 2007 and I lease it out now and I profit $600 every month, I'm selling my second home now and I'll make at least 70k off that transaction and my current home is worth 50k more than I owe on it. If you choose your property wisely... owning has a earning power....renting is just a black hole. Youre making someone really rich. Not my style. Its your choice though.

Answer 12

Don't worry about how much you have $2000 is fine , you will need a family member , possibly your parents to help you out with the other $4k , and il tell you why .



In my case I was 23yrs old had 1k in bank found a home in Houston texas 2008 , for sale in a not so good and not so bad area . The area homeowners all over 50 yrs , kept their yard clean homes were for sale under 70k , found me a 64k home got approved with Wellsfargo no money down BUT had to pay my closing cost ( realtor waived her fee 3% since the bank was paying her commission ) CLOSING cost was $5k , called mom she said no call in laws and got 3k same day ..



so to answer your question don't rent buy , my home is now worth 155k appraised , new roof windows and ac unit etc . and if I would of took I DONT HAVE MONEY excuse in beginning id probably be RENTING . Nothing to my name . Mortgage is 4% taxes home payment insurance pmi $580 , rent is $950 for 3 bd room



BUY A USED HOME REAL LOW

Answer 13

My parents are Land Lords and overall, buying would be a better option than renting however with $2,000 in a bank account that is not enough to buy a home. Most mortgages require around 10-20% of the home sale price plus a debt service coverage ratio of your gross income. You need to make a steady stream of income to prove to the banks you have the capacity to pay the mortgage. Don't forget that owning a house has other associated costs such as property taxes and house insurance.

Answer 14

As noted by many others, $2000 is not enough for a down payment. Not sure what housing goes for in your area, but lets use an example to flesh out your thinking. Say you have a starter house at 150,000. You will need to have at least 10%, almost certainly 20% down. This is $30,000, unless you secure some other source (VA loan guarantee for zero down, or mom/dad co-signing). If you have been saving for a year or two, that means you will need another 14 years to save the cash for a down payment, unless you really work at saving. Short term answer will have to be "RENT", keep your expenses as low as you can (cheap cars, small apartments, budget well, etc).

While you save up, look into buying. Good news is you have a few years to learn while you are saving. Real estate and rental properties are a very common, and in my experience, good way to build up wealth. Your first house should have considerations of eventually renting out to someone else when you move on, i.e. buy it to live in it for a few years, but plan on renting it after you move on.

Your first house then, will require you to read up on buying, but also on renting out property. Often, you can cover the mortgage with the rent you receive, even if you have to pay a management company to do the day-to-day stuff. Don't be in a rush to decide, you have a while before you are capable.

Plenty of books, and experts out there to learn from.

On to the question that needs answering, even if you haven't realized you needed to ask it:

Use some of the money you have saved, sit down with a financial planner, and plan out everything else. A house, like any investment, should be part of a coherent financial plan. This may cost you a few hundred dollars, but they will be able to help build that plan in a way that will save you from making costly mistakes. Think of the funds you pay the financial planner as an investment in yourself, and your own financial understanding. THAT is your far more immediate need that I see, and the single most important investment anyone will ever make. Once you get a well advised plan and some financial education/understanding, the house buy/rent decision will take care of itself.



Hope that helps. It is the advice I am teaching to my own kids, who have the advantage of having an accountant and finance/economics nerd for a dad. :)

Answer 15

Rent

Answer 16

I needed to lease because of twofold digit interest rates in the 80's......but when I at long last quit fooling around about existence, I purchased a spot when interest rates descended. Presently is a great time to buy....and I've been around more than 50 years and have claimed a couple homes and leased numerous. Purchase a starter house and get roomates would be my proposal to you. It will help until you begin makeing the greater cash around age 35-40. My first house, I used to pay additional rule every month, when I purchased my second home, I as of now had like 50K in value, so I had the capacity pay money with the various cash I spared. My second house was all fouled up, it took me 3 years, and around 30K to renavate it. However, it was all so justified, despite all the trouble. I'm useful for the following 15 years on repairs and overhauls.

Answer 17

Rent

Answer 18

The best option for this, rent an apartment which is better to stay out of home. When you decided to move out then take this step of renting, don't think to buy.

Answer 19

2K won't enable you to get right into a house. You'll need a considerable deposit along with a slush account with regard to emergencies. As well as insurance coverage as well as home taxation's could be creatures based on in your geographical area. Whenever you perform purchase, search for very first time house purchasers info. Frequently it will help provide you with a great deal. However make sure you wait around before you have sufficient money with regard to emergencies. Absolutely no work is completely safe as well as nor is the wellness. Conserve sufficient to have an sufficient deposit which enables you to have a 20 12 months mortgage with no much more. I would additionally counsel you in order to lease for some time as well as learn how to end up being by yourself. It can help you choose exactly where a person actually want to reside which has all of the features you would like. We relocated from the big town to some little city that does not possess all of the treats. I'd therefore prefer to possess shops as well as dining places inside strolling range rather than needing to generate anywhere to obtain a few food. Attempt leasing within an region you are able to pay for as well as want to reside in.

Answer 20

If you have a stable income as you indicated, rent for now and put some aside for when you're truly ready to buy a home. Owning a home means you are now the landlord, the plummer, the all around maintenance man. If you don't have the money to hire repair personnel, then it all falls on you. And don't forget the property tax, all the utilities; I yell at my guess when they're in the shower for longer that ten minutes. People always say it's cheaper to buy but they never consider all the other expensive stuffs that comes with owning a home. With the crazy economy, if you were to lose your job, you will really be screwed. You should have enough saved in your bank account to cover at least six months of mortgage payments should you find yourself in a financial dire. Good luck to you.

Answer 21

Either to rent or buy a new home is it not good decision. If you rent a home one day your balance could be quite. Other way $2000 is not sufficient balance to buy or take ownership a flat.So it's better to deposit to bank your money for enough balance to buy a new home. I advice you it's better to buy a new home or flat than rent.

Answer 22

$2000 is about half the down payment on a good house. So buy a crappy house.



Interest rates are the lowest they have been for decades - They have no where to go but up.



House prices have not gone up in a decade - That can't last.



Rents at the moment are as close to mortgage payments as they have ever been.



Now's the time for everything but what you have as a down payment. Get a crappy fixer upper and get to work.

Answer 23

If you are having a steady income source it is always better to take the leap. Though $2000 sounds pretty low for a start it is possible to take the chance as you are young and thus opting for a longer duration to repay the loan will not be a bad idea. Moreover it will be an investment and an asset for you. You can resell it anytime you want and opt for a better house. If you buy the property in a good locality with all the basic amenities available there will be no dearth of buyers. So, why wait, take the leap!

Answer 24

If you decide buy or rent a home must choose Condos near UT Austin in Wenchester Condominiums. It is only $1,625/ mo. featuring the 2 bed and bath unit which is just a few steps away from the UT Campus. Complete with appliances and other things necessary for convenient living. Parking garage is also available for tenant. There is also another condominiums available just visit the website.http://utstudentcondos.com

Answer 25

Buy a home because paying rent is like throwing money down the drain.

Answer 26

It depends on your area...its a big contry or world for that matter. Do you live in a large city? Is it going to be flooded when the sea level rises which in 10 years will effect its value since the sea level is rising faster than predicted and it will show by then.

You might be better off getting a temporary home a "tiny housr on wheels" or RV, and when its paid off (IF you can live in your parents back yard there - keeping that and the zone and code laws in mind when buying one.

Then buy a "lot" or even acreage where you would home to retire, pay it off while you work out your reminder of 63 required work years till retirement saving in case SS is gone by then.

You can possibly build a Duplex/quad (on your lot or acreage) or in your city or buy one in a few years. A friend of mind bought a duplex and rented out one side making out of pocket for te mortage and insurance, taxes smaller from his own pocket when he married and had his 2nd kid he installed a door joining the two into one in the LR once the kids moved out the door was removed and with the place paid off he was able to save losts from rent and bought his dream retirement home.

Answer 27

My dad was a builder so he always encouraged me to buy so when I was just your age and going to college I went out and found a used mobile home in good shape and bought it. Left it in the mobile home park for the next two years and then I found a plot of land that was designed for mobile homes but as large as a regular lot (100' by 80') and bought it. 5 years later I graduated from law school and got married so I sold the house and lot, made a profit and bought a condo. Moved on from there. Something to think about. Good luck!

Answer 28

I would rent first of all . If your going to move out with only $2000, look for a friend to maybe move in with to help pay the rent. Your only 24 years old so thats completely normal.

Answer 29

Rent apartment

Answer 30

I am a new fresh girl and i am working this summer, i earn little so i only could rent a small room with another girl.But i need to say that i live unhappy with others. It is not convenient to live with others, so i decided to rent a big single room by myself though it may be a little experience that i feel some difficult to pay.

But i think i could live happy and free.

So i just want to say no matter what your decision, just follow your heart and be happy.

Answer 31

In my opinion you should buy a home. Renting an apartment you will only make the landlord richer and you will never end up owning the house. Land is always a good investment whether it be a field of corn or a house. Land never depreciates. So I would go with a house.

Answer 32

Rent with option to buy.

Answer 33

Rent an apartment

Answer 34

Rent-To-Own Homes - http://RentToOwnHome.uzaev.com/?KWrt

Answer 35

Rent a home is batter than buy.

Answer 36

It just depends on your situation, if you can buy I would suggest buy, because when you rent its kind of like just throwing your money into nothing, at least when you buy, its going toward paying off a house

Answer 37

first of all do you have a good, permanent job that you can afford payments, $2K in your savings isn't much toward a house purchase let alone maintenance

when you are the owner all the repairs and maintenance are up to you, no one else is going to pay them

then at 24 is this where you want to live for a good number of years, most people trade houses in 7 yrs, are you settled enough that this consistency is a factor for you

investing in a home is always a good thing, it is 'investing' not paying for something you will have no interest in, in fact when you rent you are actually helping the other person to pay for his investment, you are contributing to his asset, not yours

but in your state look at all the factors before you jump in

Answer 38

I think you should buy because after buying you need not spend more money but if you rent you have to spend more money which will equal to your cash after 1 year or two year later. If you have not enough money you can take loan from bank.

Answer 39

It really depends on your job stability and income. It cost more to own than it does to rent when you figure in the property taxes , insurance and maintenance, however you generally gain equity over the long run. Renting is ok for those that may need flexibility in moving and do not have the time or money to perform maintenance.

Answer 40

There are a lot of programs for first time home buyers , there's one from the State or Obama, it's call Bond , it gives you $8000 for the down payment but this one you have to give it back if you sell the house , another or you can put it on top of this Grant is call HOPE it is an organization to help first time home buyer with low income, now they are giving $8000 , this one you have to pass a class for 8 hours in one day so they give you a certificate as a first time home buyer and this $8000 you don't have to pay back if you live the house for more than five years or ten, this certificate is valid for one year, so you have $16000 right there for down payment, if you go with Citibank they give you $3000 for closing cost as a credit and if you open an account with them they give you $500 toward the closing too, depend on the city that you want to live or buy they have programs for the first time home buyers that they give you from $15000 to $55000 or more but you have to live the house for five or ten years, when you find the place to buy ,go to its city and find out the programs for the first time home buyers , there are some programs like FHA that you only give five % on the down payment for example on a $100,000 house , you only give $5000 down payment but if you get all this programs it's better to go for the 20% down payment

I live in Florida , if you live in this state , I can give you all the phones # and address, every month they have all the classes for the first time home buyers , yes at this moment it's better to buy

Answer 41

how in the world could it be less to buy than rent with just $2,000 down?



IF you really can buy for less than rent by ALL MEANS buy.

Answer 42

I took on my mortgage in 1986. At the time the Realtor we consulted was helpful and honest. We (Wife

and I) went in with NO down payment, years of Renting experience - Good Credit and MY one condition

was NO CLOSING COSTS. My ex-wife mentioned money I had saved; $3,000 and a bit more and the

Realtor informed us "Unless you have 25% or more of the amount you borrow LEAVE IT and use it

for other costs when you have to. For EVERY $1,000 you spend as Down Payment your Mortgage

payment is lowered by $8.

HAVE YOUR PARENTS ask their Lender if that is still true. The mortgage we took was @ 6.8% then

6.6% at Closing. That's about TWICE the rate now. TEN YEARS later when I looked for another

mortgage (she got the first one in the divorce) the Lender I applied to said "You don't earn enough.

Without $7K to put forward my company won't lend to you." I asked for a lower interest rate --

Golly Gee ! Government regulation SET the rate; they couldn't go lower and EVERY Lender charged

the same amount ! NO COMPETITIVE PRICING!

Answer 43

If your living with parents, take advantage of that and really start to save as much as you can for the deposit while also doing everything you can at the same time to improve your credit rating so that when you come to look at a mortgage, you'll have a nice big deposit as well as an amazing credit score, both of which should help you get the best possible interest rate saving you money :)

Answer 44

rent for now. 2000 is nowhere near enough to buy a home.

Answer 45

Stay at home and save more money then Buy. After i got out of college i was 21 and lived at home till almost 24. saved 50K put 25K down on my house. Also recommend fifteen year mortgage if possible. Good luck

Answer 46

Rule of thumb, as I recall, is you should not buy if you don't plan to relocate within 7 years. Frankly, I think I would discuss a gift from my parents from your parents I did not; but, if you need help my view is to grant it on the front end of your life than the end of their life. If this appeals to your family it would time to sit down with a bank. If at all possible, avoid a real estate broker as they owe you nor the seller any loyalty. The broker, in would seem, represents you. Nope. Learn this before all else.

Answer 47

save more money for a decent down payment and then go for it.

at your age and with living at home, you should have more than $20,000 not $2,000 saved before this buy.

always look at location location location before you buy (check out realtor.com for all the homes and condos in your area) and talk with a banker this week to see what $ you can get a mortgage, it will be based on your income and the type of home you want.

Answer 48

You're best renting a house until you have a job when you can earn an efficient amount of money for a mortgage.

Answer 49

In this market, i would rent and wait for a crash or something to then buy

Answer 50

Coming from experience, I am 26, I wouldn t purchase a house if you only have $2,000 in your account. Like an above response, that will barely cover you if something happens for one month. I would wait til you can put down 10%+ downpayment and can cover life for up to 6 months! Be patient, things will happen right in time.

Answer 51

Home ownership is great when you are young and single. You can get room mates to help with the bills. But you will need a 20% down payment to get into a home. Best of luck

Answer 52

You will not be able to buy a house if all you have saved is $2000. That won't cover your closing costs.

Answer 53

If you plan on staying in the area or 4 or 5 years you should buy, lots of financial reasons to do so.

Answer 54

Of course if you have sufficient amount of money to buy a home you should buy it.Because who wants to give a certain amount of money to house lord every month. and the rate increasing each year simultaneously.If you buy a home you are free from that obligation.

Answer 55

A house is expensive. If you have the money, then you will like the property. However, if you are a college student, just rent a place as it is cheaper :)

Answer 56

You need to buy a home at this age!

Answer 57

You can invest $2,000 in Asia to buy any off-market property. After 2-3 years you can merge your saving to buy new property in Europe.

Answer 58

2000 isnt enough for **** having to do w buying a house or apt or renting anything

Answer 59

Rent is not a good .

Answer 60

rent then buy

Answer 61

Renting is better

Answer 62

At 24, always rent. At this age, you want the flexibility to move if you want to.

Answer 63

You should go for rent.

Answer 64

rent

Answer 65

Buy a home.Nothing can be best than owning something

Answer 66

Buying is best because you dont have to pay someone else's home. I'm currently saving money to get my own home.

Answer 67

rent

Answer 68

Keep saving money and then buy a house

Answer 69

Buy

Answer 70

Buy a home.

Answer 71

You should probably rent until you can save up a down payment. $2000.00 won't do it.

Answer 72

Buy a home for yourself.

Answer 73

rent is easy for now

Answer 74

rent

Answer 75

Rent because you can move further all the time.

Answer 76

buy a home

Answer 77

Buy as soon as you can. work with the banks and family so you dont have to wait 5 years. for example you can use LOC

Answer 78

buy a home

Answer 79

You really didn't need to state that you had no wife when you said you were single at the start.

Answer 80

Buying is always better because you own it.

Answer 81

YOU SHOULD GO FOR RENT

Answer 82

buy a home ,that's yours .

Answer 83

you better buy home

Answer 84

RENT IN YOUR CASE.

Answer 85

Buy buy buy

Answer 86

It depends on many factors

Answer 87

buy a home.

Answer 88

Aim to buy a condo.

Answer 89

buy

Answer 90

buy

Answer 91

def an apartment bro ..for now

Answer 92

buy if you can.