Comments on: Pros and cons of buying vs. apartment renting http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/ Christian Personal Finance - Financial help, debt help and other financial resources Sat, 21 Nov 2009 05:30:02 -0600 hourly 1 By: Money Hacks Carnival - Otter Pop Editio | StretchyDollar http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/comment-page-1/#comment-12539 Money Hacks Carnival - Otter Pop Editio | StretchyDollar Wed, 20 May 2009 15:23:54 +0000 http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/#comment-12539 [...] presents Pros and cons of buying vs. apartment renting posted at Christian Personal [...] [...] presents Pros and cons of buying vs. apartment renting posted at Christian Personal [...]

]]> By: bob http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/comment-page-1/#comment-12447 bob Sat, 16 May 2009 04:31:55 +0000 http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/#comment-12447 Jim good points - and just to clarify, in your first paragraph, you were referring to the deduction of mortgage interest from taxes -correct? And as far as it being a great year for buyers, I couldn't agree more... Jim good points – and just to clarify, in your first paragraph, you were referring to the deduction of mortgage interest from taxes -correct? And as far as it being a great year for buyers, I couldn’t agree more…

]]> By: Jim http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/comment-page-1/#comment-12446 Jim Sat, 16 May 2009 03:18:08 +0000 http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/#comment-12446 While I enjoyed this post, there is definitely one thing I want to point out - and you did touch on it, however; I read an article a while ago over at Get Rich Slowly, it was a guest post (http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/). Basically, what the article says, in two sentences, is that having a mortgage for the single reason of taking advantage of a tax credit sounds a lot better than it is. The tax credit isn't a dollar for dollar reduction, its not like paying $15,000+ a year in interest is going to get you 15k back from the government, it's simply a deduction on your earned income - so you're paying 15k in interest, and getting a fraction of what it's worth "back." I'll take the 15k any day. Also, to all considering buying: This year is definitely the time to buy if you're a first time home buyer. This is $8,000 in FREE money from the government (not a deduction, from your taxable income). Personally, I am not a first time home buyer - but if I were, I would definitely try to take advantage of the credit this year. I would even do so if it required "tightening up the belt" for a little while in order to replenish a savings account. I am definitely not saying to buy more house than you can afford, or not to do your homework but, if you find a deal - I would jump on it. This summer, house prices are going to be low low low, money is cheap (low interest rates), plus $8,000 back from uncle Obama. That turned into a winded post, but it's just my $0.02 (more like $1.02 I guess, haha). Keep up the writing, I enjoy reading your post - it's nice to read a financial blog that has Christ at it's roots. God Bless. While I enjoyed this post, there is definitely one thing I want to point out – and you did touch on it, however; I read an article a while ago over at Get Rich Slowly, it was a guest post (http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/). Basically, what the article says, in two sentences, is that having a mortgage for the single reason of taking advantage of a tax credit sounds a lot better than it is. The tax credit isn’t a dollar for dollar reduction, its not like paying $15,000+ a year in interest is going to get you 15k back from the government, it’s simply a deduction on your earned income – so you’re paying 15k in interest, and getting a fraction of what it’s worth “back.” I’ll take the 15k any day.

Also, to all considering buying: This year is definitely the time to buy if you’re a first time home buyer. This is $8,000 in FREE money from the government (not a deduction, from your taxable income). Personally, I am not a first time home buyer – but if I were, I would definitely try to take advantage of the credit this year. I would even do so if it required “tightening up the belt” for a little while in order to replenish a savings account. I am definitely not saying to buy more house than you can afford, or not to do your homework but, if you find a deal – I would jump on it. This summer, house prices are going to be low low low, money is cheap (low interest rates), plus $8,000 back from uncle Obama.

That turned into a winded post, but it’s just my $0.02 (more like $1.02 I guess, haha).

Keep up the writing, I enjoy reading your post – it’s nice to read a financial blog that has Christ at it’s roots.

God Bless.

]]> By: Kacie http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/comment-page-1/#comment-12426 Kacie Thu, 14 May 2009 23:01:53 +0000 http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/#comment-12426 We're renting and will probably be renting for another year or so. We briefly considered buying, thanks to the tax credit, but we just don't have enough cash on hand to afford a decent down payment and closing costs without tapping our emergency fund. We thought long and hard about it, and it just seems like we can't pull it off. We're going to keep on saving for now. In my area, renting is MUCH cheaper than having a house. Our rent for a 2-bedroom 1.5 bath place is $770/month plus electric, which is about $80 on average. A house would be mortgage, property taxes, insurance, gas, electric, water & sewer, trash, and maintenance. We calculated those costs to be around $1300 to $1600 per month, depending on the place in our price range. Yikes. When I lived in Indiana, there was a renter's tax credit for the state where you could deduct a portion of your rent. That was nice. Good luck with your move! We’re renting and will probably be renting for another year or so. We briefly considered buying, thanks to the tax credit, but we just don’t have enough cash on hand to afford a decent down payment and closing costs without tapping our emergency fund.

We thought long and hard about it, and it just seems like we can’t pull it off. We’re going to keep on saving for now.

In my area, renting is MUCH cheaper than having a house. Our rent for a 2-bedroom 1.5 bath place is $770/month plus electric, which is about $80 on average.

A house would be mortgage, property taxes, insurance, gas, electric, water & sewer, trash, and maintenance. We calculated those costs to be around $1300 to $1600 per month, depending on the place in our price range. Yikes.

When I lived in Indiana, there was a renter’s tax credit for the state where you could deduct a portion of your rent. That was nice.

Good luck with your move!

]]> By: Karrie http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/comment-page-1/#comment-12418 Karrie Thu, 14 May 2009 08:28:29 +0000 http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/#comment-12418 I have recently been thinking about this (renting vs buying) in regards to my situation. I am wondering what you think about this, since I have always had difficulty thinking long term and thinking about financial matters. I am just over 30 years old, and have been "declared" disabled and receiving social security for a little over 2 years now. I have a medical condition that has slowly but consistently worsened over the last ten years, but has remained a mystery to the doctors. As that relates to this financial issue, to me it means I do not have a reliable sense of how I'll be doing in five, ten, or twenty years; the probability is that I will be as bad as I am now or worse. It has, however, reliably kept me in the same town for the last six years, and will probably keep me here for the forseeable future. As I've been crunching my little numbers (or, rather, utilizing financial websites that help you), it seems that over 20 years, I would save some money, but that the financial risk is front heavy. What are your thoughts? Do you think it is a possibility or that it is fiscally sound to attempt to own if you are, and probably will continue to be, below the poverty line? I hope this is not out of line to ask a question here as a comment. Thank you for your always interesting and informative articles. I have recently been thinking about this (renting vs buying) in regards to my situation. I am wondering what you think about this, since I have always had difficulty thinking long term and thinking about financial matters.
I am just over 30 years old, and have been “declared” disabled and receiving social security for a little over 2 years now. I have a medical condition that has slowly but consistently worsened over the last ten years, but has remained a mystery to the doctors. As that relates to this financial issue, to me it means I do not have a reliable sense of how I’ll be doing in five, ten, or twenty years; the probability is that I will be as bad as I am now or worse. It has, however, reliably kept me in the same town for the last six years, and will probably keep me here for the forseeable future.
As I’ve been crunching my little numbers (or, rather, utilizing financial websites that help you), it seems that over 20 years, I would save some money, but that the financial risk is front heavy.
What are your thoughts? Do you think it is a possibility or that it is fiscally sound to attempt to own if you are, and probably will continue to be, below the poverty line?
I hope this is not out of line to ask a question here as a comment.
Thank you for your always interesting and informative articles.

]]> By: Craig http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/comment-page-1/#comment-12409 Craig Wed, 13 May 2009 19:33:02 +0000 http://www.christianpf.com/pros-and-cons-of-buying-vs-apartment-renting/#comment-12409 I am younger and could not afford to buy right now. Also, I recently moved and am not looking into a permanent location yet because I could easily move states again, and want to. No rush in settling down. If I was older and wanted to settle and could afford, I don't see why not. It becomes an asset then and you could always rent it out. I am younger and could not afford to buy right now. Also, I recently moved and am not looking into a permanent location yet because I could easily move states again, and want to. No rush in settling down. If I was older and wanted to settle and could afford, I don’t see why not. It becomes an asset then and you could always rent it out.

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