Do you think that renting is a waste of money?

Do you think that renting is a waste of money?
According to the results from the Renting versus Owning thread (the only person to vote for renting was me), most think that renting is a waste of money. One of the vote titles was even Renting is a waste of money by Beverly. Why do you believe that renting is a waste of money, or not?

Comments

EliteWriter
Yes, I do think that renting is a waste of money. Just imagine renting a house for several years. At the end of the day you still cannot call it your home because you do not own it. Should you pass away your wife/kids will not inherit anything. On the other hand, if you tried to find a house for which you can get a home loan, in time, you will be able to call it yours. You would not be throwing money away, but rather investing it in such a case. True, many people say that they prefer renting than getting tied up with a home loan for several years and paying the high interest rates. However, if you were to consider it as a long term investment, you will see that it is much more worthwhile, as long as you can manage the monthly repayments. So whenever possible renting should be avoided in my opinion as it is not a form of investment, but rather a short term solution, which ultimately results in money being thrown away.
Posted by EliteWriter on 12-12-2015
FindingJay
It depends on your circumstance, I suppose. I believe it is a waste of money for me since I have no reason to rent. You, on the other hand, have already suggested that you move around a lot (per your vote in the rent vs owning) and want to be free. Buying a house is locking you into a geographical region but renting allows you to move around at your leisure.

Renting is also, sometimes, cheaper than a mortgage payment. A mortgage payment also has a lot of interest. I think you mostly pay interest for the first 10 years on a mortgage for a 30 year loan (versus principal payments). This is because you pay the interest to banks up front and whatever is left over goes to the principal. This equates to like $8 on your first mortgage payment.

On the flip side, you get no equity, ever. My first payment netted me $8 in equity whereas your rent payment will never equate to anything.
Posted by FindingJay on 12-12-2015
EliteWriter
Yes, I agree that for those who travel or move around a lot renting is the best option so as not to leave the house unused for long or get bored in one place.
Posted by EliteWriter on 12-13-2015
BrowniePoints
Renting is a waste of money but sometimes it is the only option that people have. There are a lot of things that having a home entail, such as property taxes and home owners insurance. There are a lot of people that can not afford those things along with rent each month, so they have no choice but to rent and keep kicking money over to someone else for something that will never be theirs.
Posted by BrowniePoints on 12-15-2015
Beverly
Looking back twenty years, I can see all the many thousands of dollars that I have wasted on 'temporary housing, meaning rentals. And, I have to ask myself, was it really worth it for the convenience of being able to just pick up and go on a whim? Unfortunately, I can't get a dime of rent money back now. Once spent, it's gone forever and you're just living in the moment in a borrowed house. If I'd taken time or even had the money to invest into a home twenty years ago, rather than repeatedly sinking money into another person's property, it would surely be worth much more now as real estate almost always appreciates in value. And, now I'd actually be able to sell that house for much more money than I'd originally paid.
Posted by Beverly on 12-21-2015
Razzy
Renting is definitely a waste of money. You're basically paying the same amount, or close to it, as a mortgage. Why rent when you can own for the same amount each month? The only reason to rent, and I did this, is to build your credit score high enough to get a lower rate on a mortgage. My credit score wasn't great so my loan from the bank would have been pretty horrible due to the rates I would have gotten. I rented for 2 years and built my credit, then applied for a mortgage loan and I actually saved money.
Posted by Razzy on 06-14-2016
idealmikey
Renting is good for the short term. But not for the long term. If you're going to be renting long term, you may as well look into getting a mortgage as it will be money much better spent. As pointed out here, when you rent, that money is gone on rent and you'll never going to see a dime of it again. No matter how much rent you pay, the property will never be yours. Where as when you're paying for a mortgage, you're paying off buying the property bit by bit and eventually, once you've paid off the mortgage, the property is yours forever. It's a no brainer! :)
Posted by idealmikey on 06-14-2016
MasterA
Yes, renting is a waste of money in the long term. If you plan on living somewhere in the long term, then you should buy the house instead of renting. When you buy a house, it is kind of like turning cash into assets but with renting, you get nothing. Both does have a monthly cost but the monthly cost of buying a house is cheaper; mainly that is just maintenance costs and taxes. Therefore, it is more cost effective buying a house. There is an advantage with renting and that is using it for short term accommodation. For example, you won’t be able to buy a house straight away and you need somewhere to stay and this is where renting becomes very useful. For renting, in 10-20 years’ time, you would of paid the same amount as the cost of a house but with renting you won’t actually own a house.
Posted by MasterA on 06-22-2016
abkr08
I've rented in the past, but even though its a waste of money, sometimes it's ok. If you move to a completely new area you might want time to familiarize yourself with the surrounding area to decide exactly where to buy. It's always going to be money down the drain. If you buy a house & have a 25 year mortgage, it's yours outright at the end! If you rent for 25 years you've still got nothing & will be paying rent for the rest of your lives. Where as those who bought will be thinking about what they can spend their money on.. such as a nice new car, more holidays or even early retirement. It's a no brainier.
Posted by abkr08 on 07-26-2016
Natty
Renting is in some ways a waste of money, but in some other ways you do not really have a choice. Many people cannot afford the large deposit required to get a mortgage to pay for a house or to get a loan from a bank. For this reason I think that renting is completely fine for a couple of years or maybe a decade because not everyone is born with a lot of money and not everyone is as good at saving as everyone else.
Posted by Natty on 08-02-2016
neilbhabuta
To be fair, it totally depends upon your money flow, while at the same time your necessity and need for the product after a certain amount of time. If you needed for a long time frame, then purchasing it would be the better option rather than renting.
Posted by neilbhabuta on 08-18-2016
overcast
In some context, I think it's worth having the renting. Because you'd earn some decent money from that. You also have to consider having the money to be paid for the rented room or the house. You have to consider that rent based income streams are necessary. Another thing is that selling and flipping is a good option. But it can't be regular streams of money. I have learned that it may not be a good option if you are low on the money reserve.
Posted by overcast on 06-25-2017
JMS
Oh for sure renting is a waste of money. What you are doing is putting money into someone else's pocket every month instead of your own bank account. Sometimes though, people don't have enough money for the deposit or maybe they don't have regular work. If they don't have regular work then it is difficult to get a mortgage and then they are forced to rent.
Posted by JMS on 07-04-2017
Jonathan Solomon
Well, first, I think it depends on how much the actual amount of rent per month is. As well as how much you're left to spend once rent has been deducted for that month.

Keep in mind, not everyone is in a position to buy a property. Therefore, renting is their only option. Can it be a waste of money? Long-term wise, yes, it can be. However, there's nothing wrong with having an allotted period of time you plan on renting. Only to transition into a house in the future. The problem is, people get caught in a renting cycle. Never actually building and investing their hard earned money into anything of value to call their own one day.

It's at this moment, that renting can become more of a detriment than aid. Moral of the story is, plan your living arrangements accordingly. Live within your means, and think to own your own real estate eventually as you try to climb the economic ladder.
Posted by Jonathan Solomon on 07-04-2017
Clara1993
Renting is not a waste of money guys come on! not all of people can afford to buy houses so renting might be the only choice you have or let's say if you want your own space then reting is good and if you can rent a cheap apartment and still have some money left then it's a primary need like food clothing and other primary needs, we need privacy and having your own space gives you some privacy which help us to think and do everything we want the way we want it this is freedom, renting is not waste of money as long as you keep working on buying your house, plus not spend all your money renting luxurious houses ... that would be foolishness for me.
Posted by Clara1993 on 07-05-2017
BigDreamer
It depends on how long you plan on living there. If you will only be there a year or so then renting is the way to go and is not a waste of money. If you plan on staying forever then buy it instead of renting.
Posted by BigDreamer on 07-05-2017
vinaya
Imagine this. You pay $2000 as rents in five years you will be paying $120,000 as rents. From this money, you can actually have your own house. Good thing about buying property is you don't need $120,000 at once. If you have 20-20 thousand dollars, you can use that money as an advance payment and then apply for bank loan. In five years, you not only clear bank loan, but you also have your own house.
Posted by vinaya on 07-15-2017
chatbox
I agree that overall, it would be a waste to rent a house. Even if you do borrow money and pay interest to buy a house, the appreciation value of the property can easily cover the cost of borrowing money. On the other hand, renting is a sunk cost that you will never be able to recover. In general, the only difference in initial cash outlay between renting and buying a house is the downpayment. If you can save for this amount, you'll be more than happy to just pay for your own house than give your hard earned money to the lessor.
Posted by chatbox on 07-23-2017
Sue
First off not everybody can get a mortgage to buy a home so renting in their only option. Not everybody wants the responsibility of owning their own home. It can be quite expensive for the up keep alone if something goes wrong. There are a lot for added expenses you have when you own your own home that you don't have when you rent. I have done both and for me I prefer renting. Unless you can do a lot of your own repairs buying a home can cost you a lot. I have any problems I call the landlord and he takes care of it with no expenses to me.
Posted by Sue on 07-23-2017
hermessantos
I do not think paying rent is a waste of money. In the past I even had this thought, but today I no longer think that way. Today I pay rent, but I believe I'm paying for comfort. I try to see only the benefits of paying rent. Anyway, it would be interesting if it were cheaper.
Posted by hermessantos on 07-28-2017
cmoneyspinner
Any time you can put a roof over your head and over the heads of those who take care of, it's not a waste of money. Is better to own a home versus renting a home? Of course, it's better to own. But if you can not afford to buy a home and can only pay rent and that puts a roof over your head, it's not a waste. The alternative is sleeping on the streets. (O.o)
Posted by cmoneyspinner on 09-25-2017
Marvadaum
Yes, it is. Unlike education or food that can actually serve some purpose renting only serves to give other people your hard earned cash so they can earn and do nothing, not even fix the basic stuff that needs fixing in the house.
Posted by Marvadaum on 09-25-2017
Heatman
Not really, it depends on what financial position one is in at the moment that would determine if renting is a waste of money to me or not. Paying for rent is not a cheap budget and as well as buying or building a house, that one is even more expensive than one could ever imagine.

If one isn't financially capable to build or buy his own house, I don't see the reason one would term such person paying rent as a waste of money. He or she is making due with what is affordable at the moment and as a result, I think that such person shouldn't be blamed.

But when I consider it a total waste of money is actually if the individual in question can afford buying or building his own house but still decides to live in one's apartment and still pay rent. Not only do I view such as complete waste of money, it's also a stupid behavior in my point of view.
Posted by Heatman on 09-25-2017
narutos3nn1n
In my case as most of people I know and lots of people in our country cannot afford owning or even having sufficient funds and requirements to loan a house even with subsidiaries from the government. So I think its not necessarily a waste supposedly you have a job that just earn you quite a small amount money every payday that savings turns out really hard because of the small pay you get each month. I've experienced renting a room too with my girlfriend although we had to quit it after two months as we only went there every a week or two and the price was kinda big that we will mostly spend all our savings and hard earn money paying for it. Not to mention its quite far on our work place although its on the mid point of where we are working.
Posted by narutos3nn1n on 10-11-2017
vhinz
I also believe that renting is a waste of money because even if you rent a house for your entire life, you still won’t own that house and you’ll continue paying for it. There’s nothing that you could do also if the owner of the house wants to leave or deemed selling the house to other people. This is really my own experience. Moving from another house is not easy to do and could cost you also money. So it’s better to have your own house if you can afford it. Your children could also inherit it.
Posted by vhinz on 10-14-2017
Corzhens
In 1994, we were renting an apartment and after 2 years, we moved to a rented house which had a higher rent because we needed the garage. We stayed in the rented house for 5 years until we were able to buy our own house. With the amount of money that we had paid in renting, we had computed that we could have bought a house. However, it is not easy to apply for a housing loan here hence so many people prefer to just rent than to endure the hassles of applying for a housing loan that would usually deny them.
Posted by Corzhens on 12-11-2017
ColdFlameChris
Yes, because you're just wasting your money on something that will never become yours. It's much better if it's a rent-to-own which we can say an investment. If we calculate all the payment that for our rented home for more than 10 years, I can say that on that amount of money, we can afford to buy our own house. As much as possible, find a rent-to-own so you will eventually have your own home and not to worry in the future about still getting pay for the rent.
Posted by ColdFlameChris on 12-21-2017
lovely
Certainly living on rented apartment can hinder one from getting a home of his or her home for years, you will concentrate on paying rent which is often times high and also beautifying the place to your taste all the time and one keep wasting the money he or she would have used in building hs or her own place.
Posted by lovely on 02-25-2018
hermessantos
I think renting should not always be seen as a waste of money. If you can afford to buy a home but are still paying rent, then you are surely wasting your money. On the other hand, if you do not have the money to buy a home, then the rent is definitely the best option for you to have a home.
Posted by hermessantos on 01-31-2018
Wubwub
I haven't really rented anything on a regular basis so it's difficult for me to tell, but just from a general standpoint I do think it would be much better if the money you're spending would at least go to something that's a bit more permanent. I think I would be willing to rent only if I am not spending that much and could afford to lose the money and the alternatives are a lot less appealing but as of now I think getting something more tangible for the money you spend is a lot more worthwhile.
Posted by Wubwub on 02-09-2018
lovely
j totally agree that it a waste of money because one will never own it even after such a thing for a long period of time and beautifying it to one's taste,sometimes we can even upgrade it to our standard but all of that is done for the owner use in future when the rent expires whatever it was goes back to the owner and all our money becomes a waste and we either rent it again or rent another to start making it useful to us again or bring it up to our taste.
Posted by lovely on 02-25-2018
Martinsx
If you have no fund to actually own a building, then the only option left for you is to rent one. There is no shame in renting a building as long as you are paying for the rent as and at when due, in order to avoid any form of embarrassment from the house owner. Currently, I'm living in a rented apartment but I'm seriously making plans on buying my own house because it's a very good investment.
Posted by Martinsx on 03-09-2018
treecko142
If you have enough money to buy your own house, then yes, renting is a waste of money, but in some cases, people can only afford to rent be it for financial reasons or simply because they can't stay at one place for a long time. It still depends on the situation for each person.
Posted by treecko142 on 03-21-2018
Barida
From an economic perspective, I always see renting as a total waste of money for building our house is the better choice as long as I am concerned. The thing with renting is that those that are involved have got no other choice than that. So, they go for the least options of it.

If not for the kind of economy we have in Nigeria, it is even better for people to go for the mortgage loans to get their dream houses while they pay once in a month till they finish paying. The interest might be there, but at the end of the day, you get to enjoy the house alone without paying further to anyone again.
Posted by Barida on 03-21-2018
jaymish
I definitely think that renting is a big waste of money.You spend about one quarter of your income on renting a place to live. In my opinion you're sort of throwing that money. You have nothing to show for it. You're making your landlord rich. Why not pay that money towards owning your own house. Build a house or pay a mortgage. Property is one of the safest investments you can make. Very rarely does property depreciate. Once you buy or build your home. you can sell it later for a profit.
Posted by jaymish on 03-26-2018
Pixie
Renting is definitely a waste of money. Rent is quite high in my country and the majority of people prefer to buy their own homes. The problem with renting is that the landlord may tell you to vacate the house at any time and looking for a new house is not easy. Moreover, you may also have to adapt to a new environment. Having your own house is more economical. You can save the rent money and invest it in another project.
Posted by Pixie on 03-26-2018
hermessantos
There are situations where only the rent is appropriate to the needs of the person. There are cases of people going to spend only six months, one year, at most two in the city. For them, it does not make sense to buy a property for a short period of time.

Only buy a property that has stability and certainty of where you want to live. And it is not always the will of the buyer that hits the market. People most of the time want to reside in a specific place because it is close to work, university. And she needs a place to live with some urgency.
Posted by hermessantos on 04-18-2018