Renting or Buying?

If there's any way you can buy something, buy it. Renting is like flushing money down the toilet.

I don't understand why people see renting as money lost...

When I compare my situation with a lost of my friends situation, and if I stick to my plan, we'll all end up with our mortgages paid around the same time. Except in the mean time they will have had at least ten years feeling stuck with a higher mortgage, not being able to afford holidays abroad etc..., paying interests rates much higher than mine.

But then that's according to my situation... I guess everyone, considering the place they want to live in, their career, their family etc... may see things differently.

Ponrauil

i dunno man i have a mate who shares a flat with someone he works with.

it's £550 a month plus bills split between the 2 of them.

he's been there close to a year and a half. 18 months @ 275 rent a month = just under 5 grand he could have invested in a house that he'd own and be able to trade up on.

am i correct in thinking that a majority of people in france rent rather than buy?

yeah it's not money thrown away, think of the interest, that's also thrown aways and in some cases (esp in a few years again when interest will go up big time) lots more than paying rent....

No, you're not correct.

A recent study from September 2006 shows 70% of French households are landlords and that 50% of renters wish to buy in the next 5 years.


Ponrauil

...I think of rent as dead money...but mortgages are also painful!....but at least you've got something that is an appreciating asset.....and when you're a pensioner you can release the equity... (just thinking ahead ). If you have a spare room, rent it out.

I would also say BUY - don't rent.
I have been able to purchase a few houses that have increased in value tremendously in just a few years. My first house I paid $60,000 and sold it 2 years later for $130,000. The house I'm in now I bought for $200,000 in 1990 and it is now worth over 2 million in 16 years here - I'm blown away by how the real estate prices have gone up. That why buying is a good idea.

Kathleen

WOW. Don't get me wrong--your house is AWESOME, but I never would have guessed that. Here it would probably be $350,000. That's the difference in highly populated and rural areas!

Just curious, how much is an acre of land worth there?

of course that's 10 times the value but it only becomes money when you sell it, and then only if you buy something back that is cheaper but probably less than you living now.
Of course it's an excellent retirement if needed, sell it & go renting