Ask Experts Questions for FREE Help !
Ask
    The 20year old's Avatar
    The 20year old Posts: 6, Reputation: 1
    New Member
     
    #1

    Feb 4, 2016, 03:54 AM
    Buying a new house or renting one
    I'm very young but I'm starting work very soon and going to earn a load of money so I want to know if I should get a house or rent a flat for me and my girlfriend . I can afford to buy a house but I think I'm to young and renting a flat could save mega money but my girlfriend sais I should buy a house please help me.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
    Uber Member
     
    #2

    Feb 4, 2016, 04:26 AM
    If you live with her long enough she gets half of it just like you were married. Same with your savings. Something to keep in mind.

    Look at buying a house like an investment. Rent keeps going up and its money you will never get back, you are buying someone else their house in effect. Buy a house, it will usually appreciate in value, and while the interest you will never see back, beyond tax credits... the value of the house you will get back plus any appreciated value when you sell.

    Also if you plan to stay in the area is important. It makes no sense to buy if you plan on leaving in a few years. But if you plan to stay it does.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,304, Reputation: 7691
    Expert
     
    #3

    Feb 4, 2016, 04:43 AM
    Buying the correct house, is a good investment, esp if you are going to stay for years and years in the same area.

    So a lot will depend on what "tons of money is" and the other is that often renting is often not that much more than buying, depending on the investments
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
    current pert
     
    #4

    Feb 4, 2016, 04:54 AM
    When you are young, you need to ask yourself what is the likelihood that you will stay at the job you have. If you will be changing, maybe even moving far far away, don't buy. If you do decide to buy, buy ONLY a move in ready house in excellent condition, in an appreciating area, but also one that is not high priced for that neighborhood. Real estate people have stats on all that.

    I'm not sure what smoothy means by your girlfriend getting half as if you were married. Even so, no matter how lovey dovey you two are, sit down and put all financial agreements with her in writing, and keep monthly accounting for as long as you own a house. If she doesn't have an equally high paying job, DO NOT put her on the deed, or she can stop paying a dime, and even force the sale, or prevent the sale if you change jobs.... the list of horrors is a long one. I bought my first house with my bf and another friend and it couldn't have been smoother, even when we bought out the friend, and even when I was bought out by my ex. But I saw it go all wrong with other people.

    Also, if you will be making a lot of money, you will really need the mortgage interest deduction.

    I have always preferred owning to renting, no matter how broke I was.
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #5

    Feb 4, 2016, 07:00 AM
    Up until the housing collapse of 10 years ago, a house was an excellent investment. To give you an example. I bought my first house in the late 70s. I sold it 10 years later for 4x what I paid for it. I then bought a new house and 30 years later its still worth double what I paid for it.

    But, as Joy indicated, you have to gauge how long you will be in your current job/area. Also how much you can put down on the house. You say you can afford to buy, but are you considering that from a monthly cost or from a down payment.

    The two main advantages of owning are building equity and tax savings. You get a deduction for property taxes and for mortgage interest. But you need to look at the total cost of ownership (which includes property taxes, mortgage interest, insurance and upkeep). Renting generally includes only your rental costs and renters insurance (which is cheap).

    Interest on a mortgage is front loaded. So your payments start with more going to interest then principle. That's one of the main reasons you need to look at how long you may be in your job and how long you will stay in the area. You don't really start building much equity until after the first 5 years.

    Another point is you need to look at what your girlfriend will be putting into this. If she is putting nothing, she could stand to have a share of the house if you break up.

    You are never too young to own a house, but being young does bring in factors that need to be considered.
    talaniman's Avatar
    talaniman Posts: 54,137, Reputation: 10852
    Expert
     
    #6

    Feb 4, 2016, 08:10 AM
    What are your finances like NOW? Seem obvious you rent and see how this new job goes and where this girlfriend fits in your life.

    https://www.askmehelpdesk.com/relati...ve-821343.html

    She doesn't even know you don't want a future with her, and is obviously planning to stay with you and build a nest.
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
    Uber Member
     
    #7

    Feb 4, 2016, 08:28 AM
    Should get a house or rent a flat for me and my girlfriend". Is this the same one you wanted to break up with?
    The 20year old's Avatar
    The 20year old Posts: 6, Reputation: 1
    New Member
     
    #8

    Feb 4, 2016, 11:58 AM
    Quote Originally Posted by ma0641 View Post
    Should get a house or rent a flat for me and my girlfriend". Is this the same one you wanted to break up with?

    Yes I wanted to but we talked about it and we are good and I'm staying with her . She sais she is going to change , lets hope so
    The 20year old's Avatar
    The 20year old Posts: 6, Reputation: 1
    New Member
     
    #9

    Feb 4, 2016, 12:03 PM
    Quote Originally Posted by ScottGem View Post
    Up until the housing collapse of 10 years ago, a house was an excellent investment. To give you an example. I bought my first house in the late 70s. I sold it 10 years later for 4x what I paid for it. I then bought a new house and 30 years later its still worth double what I paid for it.

    But, as Joy indicated, you have to gauge how long you will be in your current job/area. Also how much you can put down on the house. You say you can afford to buy, but are you considering that from a monthly cost or from a down payment.

    The two main advantages of owning are building equity and tax savings. You get a deduction for property taxes and for mortgage interest. But you need to look at the total cost of ownership (which includes property taxes, mortgage interest, insurance and upkeep). Renting generally includes only your rental costs and renters insurance (which is cheap).

    Interest on a mortgage is front loaded. So your payments start with more going to interest then principle. That's one of the main reasons you need to look at how long you may be in your job and how long you will stay in the area. You don't really start building much equity until after the first 5 years.

    Another point is you need to look at what your girlfriend will be putting into this. If she is putting nothing, she could stand to have a share of the house if you break up.

    You are never too young to own a house, but being young does bring in factors that need to be considered.



    Thanks , the town I'm moving to is really small and houses are really cheap there so I think it's a good deal. Like R400000 or $36000 .
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #10

    Feb 4, 2016, 12:43 PM
    My post was referring to the US housing market. If you are not in the US your experiences may vary. I'm guessing you aren't by your use of R400000.
    The 20year old's Avatar
    The 20year old Posts: 6, Reputation: 1
    New Member
     
    #11

    Feb 6, 2016, 08:06 AM
    Quote Originally Posted by ScottGem View Post
    My post was referring to the US housing market. If you are not in the US your experiences may vary. I'm guessing you aren't by your use of R400000.
    Yeah I'm in south africa
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
    Uber Member
     
    #12

    Feb 6, 2016, 11:59 AM
    Quote Originally Posted by The 20year old View Post
    Yes I wanted to but we talked about it and we are good and I'm staying with her . She sais she is going to change , lets hope so
    I hope you do not purchase a house unless you can afford it on your own. Based on your previous posts about your relationship with the girlfriend, I would be wary of incurring debt until you are sure "she is going to change".

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search


Check out some similar questions!

Buying or renting a home with difficulty [ 2 Answers ]

Hey, I didn't know if this was the right topic, but it was the only topic that had real estate in it. Here's the situation I need help with: I'm in college right now and my fiancÚ is a construction worker. Well, he's a roofer and does other construction jobs also when it's called for. On his bad...

Renting vs. Buying [ 8 Answers ]

I'm going to be attending college this winter quarter on the other side of the united states. I plan on living in Seattle region, more specifically Edmonds area. I have a place to stay 'till I find somewhere to live, and I don't have a job lined up. However, I'm saving up money for myself when I...

Buying the property you are renting [ 3 Answers ]

If you are renting a property, and before the lease is up you buy the property from the owner, when does the owner have to return to security deposit? (At closing or does he have 30 days)

Renting a home owned and buying another [ 4 Answers ]

We are in the process of buying a new home to be built in June 07 and will have to mortgage 160k. We currently own a 8 month old home (paid for in cash). However my husband wants to rent this home to pay for the mortgage on the other new home, I say sell, he says rent ! I'd rather sell and be...

Buying investment real estate and renting it to myself [ 5 Answers ]

Just wondering... Is it legal to buy a small house, put the property in an LLC, and rent it to myself under another LLC? I am self employed in sales. While a lot of people in my field work out of their house, I chose to rent a small office. Rather than keep paying rent and see the money go...


View more questions Search