IslandMix - Soca, Reggae, Zouk and Caribbean Entertainment

Not sure if this topic was posted in this forum already....been away for awhile.
This is a decision that I and other young folks such as myself will inevitably face after the age of 21. So far, reasons for renting could be summed up as:

*Temporary/permanent relief from mitigating circumstances in the household.
*Having your own space=peace of mind
*Independence= learning to handle other responsibilities
establishing your financial independence


On the other hand, there is the buying option. Reasons:
*Once again having your own space, permanently
*Not spending mucho denero in rent(some pple don't like the idea of helping someone pay their mortgage, but it is a symbiotic relationship, without the rent, there's no mortgage, and if there is no mortage, there is no shelter over your head.)

Of course the option to buy also comes with financial strains that may not amount to the same as renting

*Dinero for downpayment and closing costs

*Maintenance costs (bear in mind that there are also maintenance costs as much as a renter but not as much, because you do not share alot of responsibility for the place of residence, only if you cause damage to the apartment

But in the end, having your own home allows you to pass on a legacy in the form of memories to other future generations.



Can imix please shed some financial sense on this subject. thanks

As soon as you are able to come up with whatever necessary downpayment there is and as long as there is a good chance you will be able to afford the mortgage (through your own income or through partial renting), i say buy.

also there are several programs out there to benefit first time home buyers ....sometimes no closing costs depending on your situation....cuz you know in Ny real estate prices are forever escalating....Gl

owning is the BEST investment you could make.

Besides passing on a legacy and saving money from rent....it is the no. 1 investment because the minute you buy a house its value will surely go up. Housing value always goes up. Takes years but every investment takes time.

For more financial info...u can check one of my posts on finance, heres the link: Black People and Financial Independence

thanks folks...

HG: Thanks for the link!!

ur welcome

Chinee,

Sorry met to respond to this post earlier. There are so many programs now that encourage people to purchase homes that you really have to seriously think about getting your own home. Two I know of off the top of my head are the Nehemiah program and NACA.

These programs allow you to purchase with little or no money down and 0 closing costs. With Nehemiah the seller gives a concession to the buyer for the closing costs. What realy happens is that the purchase price is increased to include the closing costs, but hey you get the house. NACA, your closing costs are rolled into the mortgage.

All these programs work with you if your credit is not stellar, but I would recommend anyone interested in home purchase to come up with a plan and start cleaning up your credit right away.

I have tons of info cause I have been researching home purchase for a couple of years now.

The best way to paint the picture is this. By renting you are literally taking your hard earned money, and standing at the window with a fan to blow it all away. Calculate the amount you spend on rent each month, multiply it times 12 and see how much you throw away in just a year...on th other hand, home ownership is like having a hidden savings acciunt thast constinues to accrue from the date of purchase. What that means is in another 5 years or so you will have equity instead of just a rent increase! There are many ways to make it happen. There is also several ways to clean up, repair, or create new credit all together. Feel free to message or email me at any time if yiu need any info at all. You can also take a look at www.reneemortgageinfo.com. Hope it is of some help to you.

thanks to my girl and thanks 1tg

i am torn between renting and buying...
my reasons
renting: need my own space pronto. but i also recognize it would be wasting money, while like tg said, the money on rent will be hidden in savings in the equity of the house.

Although buying is the ideal situation, life is hardly always set up for the ideal. It would be great if we could all buy a house/condo/co-op right out of college, or right after leaving the nest, but it's easy to see that's hardly reality.

There's no shame in renting for some time while you build up your credit history, your savings, and so on. Purchasing is a big commitment, particularly if you're in college, that not everyone is ready for. If you're in college for e.g. and don't know where you're going to be living in 2 years, or in fact know that you're likely to move in a year or two, and have little savings in the bank, then purchasing is hardly a viable option.

Don't be ashamed having to rent for the time being when you know it's your only option. Just know where you are in your life. The problem with renting is with those of us who have steady jobs, who are settled where we are and have no immediate plans of moving away in the next couple years, and yet are not looking towards purchasing. *That's* the type who is essentially throwing money away.

thanks for your opinion luvee:)

I've done both. I've rented and now I own. It's better to own. I have th ability to pass it down to meh cherran or when I retire and go back to Trinidad I will still have somwhere to bounce up.

i wasted money by renting...Owning..yuh have more power..

but even though u rented..u didn't loose focus and now u own...is your opinion about renting the same now? wasn't it a stepping stone to owning?

Chinee,

Along with all the good points people pointed out, there are tax advantages to owning a home. You can deduct the interest on your mortgage and also you can deduct your closing costs. Also the real estate taxes can be deducted. If you have investment property, the possibilities are endless when it comes to tax breaks! When I hit a certain income bracket, my accountant started telling me that I needed real estate in order to keep my cash in my pocket!

My advise to you is- Don't hang your hat where your hat can't reach. Owning a home is a huge expense, from mortgages to taxes and insurance, etc. When you buy a home always know that you need some extra cash to do repairs after you buy the house (unless of course it's a new house). And be careful with what you are buying. Never use these one-stop shop places that helps you find the house and finance it. And do your research because there are programs out there to help you as a 1st time homebuyer. Also there are downpayment assistance programs which can help you avoid Private Mortgage Insurance.

If you need any info, you can PM me. Real estate investment and finance is my field.

Good to know