To buy or to rent?

Yes I agree. My home will be paid for in August this year and I am looking forward to having the extra money in my account.

@Alexandoy It's nearly £400 for me which is around $520 per month. Property is very expensive here.

@sprite1950 it's a nice feeling when the mortgage is fully paid. That's an extra $200 monthly.

My house is quite small but I figured that when my granddaughter has flown the nest I might be able to buy something cheaper and make some money on the sale. Moving costs are huge here though.

@sprite1950 In India, it makes sense to own several small homes. You see, rents are decent. Larger and sophisticated homes can mean richer and powerful people coming down to take them on rent, and then they do not vacate, and cause legal issues. Smaller homes are usually taken on rent by people in lower and middle classes, and rents increase at the rate of 10 percent per annum, compounded annually. So yeah quite lucrative when you consider that bank pays about 6.5 percent per annum, simple interest, and other alternative is risky stock market. Real estate here has another advantage. Valuations are not revised for the purposes of wealth tax calculations but valuations are visible in stock markets and bank deposits or bonds. So a person is not liable for taxes on capital gains till he or she sells. Only hassle is legal aspects. You have to be very careful investing and equally careful while selling or letting it out.

@vandana7 It's very different here. Very few people own more than one property unless they have been left one by a deceased parent and then they would either sell it or rent it out.

I took it out quite late in life. I was 49 and then I remortgaged for two cars which was stupid as it would have been finished years ago if I hadn't done that. The repairs are expensive with owning, that's the only thing I don't like.

@Lushlala I definitely don't regret buying and although you think you will never reach the end of the payments, suddenly you are almost there and that's a great feeling.

@sprite1950 Wow, Linda you just gave me hope, there. I keep thinking to myself, will I ever own my own property?! The good thing about Botswana is that it's still relatively easy to get a piece of land free from the government or even buy it cheap from someone else. The repairs being expensive doesn't bother me too much because at least you know it's your own house.

It's slightly different here. If you rent privately you can stay as long as you like providing you pay your rent unless the landlord suddenly decides to sell and then you get 2 months notice. They will have a fixed term contract which is decided by the landlord, it could be 1 or more years and they cannot leave before this term is complete but my friends have been in their house for 10 years with no rent increase. Sometimes the landlord will only want to let for a short term like 6 months. Rent increases are at the discretion of the landlord but can be any time. It's more random here. With council renting you can stay as long as you like. My mum was in her council flat for more than 30 years but the rent increases were yearly and affordable. My sister does the same and has been in her flat for 25 years.

@LadyDuck Private renting here is less reliable. A friend of mine had water pouring through her ceiling but the landlord wouldn't fix it so she eventually moved out. The council will fix it right away and everything is more organised and up together.

@sprite1950 You have a very good renting system. When we lived in Monte Carlo it was the French system, even if you had a 5 years contract, the rent was automatically adjusted to the "cost of living", if the cost of living went up 10% during the year, the rent was adjusted. In Monte Carlo it was impossible to buy, because the price of a small apartment it is simply ridiculous and half of our rent was payed by a client of my husband who asked him to follow his Administrative office there. For us it was a great arrangement.

I did think about renting again at one point but now my mortgage is ending I'm pleased I carried on. I will have the extra money each month to put towards repairs or anything else that I want. It works out at around £400 a month ($520).

@sprite1950 That's a nice amount of extra money you will have now! Do you have any other income as well? Are you retired, or do you still work?

@moffittjc I am retired but I get paid for having my granddaughter. The silly thing is I'm better off than I ever was when I worked. Taking on custody of her coincided with my retirement date which was lucky. They pay kinship carers well because it would cost them a lot more if a child has to go into the care system.

Yes even though the repairs are expensive.

@florelway This happened to my friends. The owner decided to sell the property and they had to find somewhere else.

@sprite1950 in the long run buying a property is much more practical than just renting. Worst scenario when one is renting is that when the owner decides to use the property for his own use then you will have to be kicked out and you have no place to go because it would be more expensive to find another place.

@sprite1950 We are a couple of years away still--It will feel like a relief I am sure!

@divalounger A couple of years isn't too bad. At least you are getting there.

Thank you so much. When I first took on my mortgage the end seemed so far away. I can hardly believe I am nearly there.

Yes it's quite exciting to think my mortgage will end in the summer. At least I will have more money to save for repairs.

@rakski Yes I think it finishes in August so that will be my last payment

@sprite1950 I am excited for you! unlike in renting, as you said never ending payment and in the end, you still have no property

That always occurred to me. A friend of mine ended up living in a campervan when he lost his home. Better than being homeless though.

@JudyEv I think it's because the repairs can be so expensive. When you rent the repairs are the landlord's responsibility.

@sprite1950 You pay rent forever. You might as well use it to pay off a home - but not everyone thinks that way.

Yes I understand that life chucks hurdles in our way and makes a situation impossible. Maybe you will be in a position to buy further down the line

@sprite1950 Yea, I hope so cause renting certainly feels like throwing money out the window.

@sprite1950 Oh, not familiar with council property, we don't have that here.

I'm not married now and have paid off most of my mortgage myself but I can see the benefits of renting if you are a single parent. I sometimes wish I hadn't bought my house when it comes to repairs.

@oahuwriter Yes we can do that over here with some appliances like boilers but not everything. I don't think we have a single plan for all repairs .. it's worth investigating though as I would be interested in something like that.

@sprite1950 It can be costly, but have you seen the commercial about having a home plan, paying monthly for repairs that the company does or they replace with new appliance. I've been seeing 2 different ones, they must be on youtube. I found one American Home Shield, though good to check with bbb.org about companies. Living in an apt. I don't keep up but see commercials about it. Good luck whatever you decide.

I was always taught by my parents that it is better to buy although I hate the fact I am responsible for the repairs which are so expensive. It will get easier in August when my mortgage ends. I really can't wait as the extra cash can be put towards repairs ... or maybe a new car

@porwest The house I bought was originally owned by the local council and I bought it at a remarkably cheap discount price when I was 49 which is quite late to take out a mortgage. I would have paid it off had I not remortgaged for cars (which I bitterly regret now). I sold it and bought a much nicer house, the one I live in now and it will be paid off in August this year but it does need a little modernisation. I look at my sister's rented flat which has been kept up to date beautifully by the council and wonder if it has been worth it but at least I will have something to leave my kids when I die and that was the main reason for buying it at the time.

@sprite1950 Yeah, I mean, for the most part your parents are right. It's when you think of things like this that makes you shake your head a bit. I bought a duplex in 1998 for $120,500. My average monthly payment with escrow was $1200. I owned it for 20 years. So, I paid $288,000 out over that period of time. Granted, I DID collect rents. But there were furnaces, appliances, decks, roofs, and any other things I had to spend money on over the course. Carpets, paint, vacancies... I bought it for $120,500, paid out $288,000, and sold it for $95,000 in 2018. When all was said and done I was negative $72,500. My wife and I bought a house in 2007 for $177,000. Our average mortgage payment with escrow was $1500 per month. We owned it for 8 years. We spent $144,000 in 8 years and still owed over $145,000 when we sold. If we would have kept the house to pay it off in 30 years we would have paid about $540,000 for a $177,000 house. The duplex, that actually went down in value, would have cost me $432,000 if I'd have kept it for 30 years and paid it off. Even if I could have sold it for say, $150,000, I'd still have been out $282,000. My HOUSE would have been worth maybe $300,000 by the time we would have paid it off. I'd be out $240,000 over the course of the loan period.

It's too expensive for most people in the UK to buy more than one property as it is expensive here but I generally think it is better to buy.

@arunima25 Property is very expensive in the UK. My mortgage is nearly paid off but some young couples today cannot afford the cost of buying a house.

@sprite1950 Yes. Your decision will be based on your earnings, requirement, cost of living at your place and definitely the price of real estate there.

Yes there are benefits to renting. The repairs are the responsibility of the landlord so you don't have to pay for them yourself.

@yoalldudes That sound quite cheap. My sister has a 2 bed flat and she pays amost £400 a month (which is more than $500) but property in the UK is expensive both to buy and rent.

@sprite1950 The rent in our place is $60 a month but since we had a few expenses for its improvement it was reduced to $40. It is along coastal area.

@sprite1950 It definitely can be a good investment for sure. I'm glad that you've almost got it all paid off.

@dodo19 Once it is paid off I will probably use the spare money I have for repairs and updating my house.

I bought my house quite late in life at the age of 49 but I am now 69 and it is almost paid off. I think it's a good investment.

@sprite1950 Another reason buying a house might be the better idea.

@maclanis My son's eyes lit up when I told him that the proceeds of the house would be divided between his sister, his daughter and himself when I die

Oh yes definitely and I have two children and a granddaughter that will inherit the property when I die. I want to leave them something.

Mine should be finished in August as I didn't take it out until I was nesrly 50. I am quite excited.

@DianneN Thank you!

@sprite1950 I feel your excitement and good for you!

I have done both and I must say it was nice having the repairs done free. That's the only downside to owning, the repairs can be expensive.

@thelme55 Yes but if it's not kept up together it can deteriorate badly

@sprite1950 Yes, the repairs are annoying. There is always something to repair in a house.

Unfortunately I don't have a driveway attached to my house which is why I got it more cheaply but I do intend to buy another house at some point and it will definitely have a drive as the parking is terrible where I live and I have to park in the cul de sac at the top of my road. I sometimes wonder what I was thinking when I bought my house but I loved it and decided it was the worth putting up with the parking.

@dgobucks226 I've always been lucky with neighbours. I have had a few disagreements from time to time but we always managed to sort it out.

@sprite1950 I understand. There are so many factors to consider in buying a home another being your neighbors and neighborhood. In retrospect, having known ahead of time about the weekend visitors to our neighborhood and some of the inconsiderate neighbors I came across, I probably would have choose another location.

Yes, I have 5 more months left on my mortgage so I'm on the countdown now.

@Mabeljoe Thank you. When I first took on the mortgage it seemed a million miles away but now here we are

@sprite1950 5 months will be soon. You can breathe well after that. Congratulations for owning a home.