Is It Better To Rent or Buy a House Right Now

Wonder if this is the right time to buy a house. If you’re wondering if you should buy a house now my advice is DON’T buy the house. Personally I look at buying a house the same way I look at anything else. If I can afford the house then I’ll go and buy it. Now those words are not to be confused with if I can afford the house I will call up the bank and ask them for a mortgage. So again I ask you can you really afford to buy a house right now? Let’s say down the road the house you buy is not worth as much money as you paid for it, and lets also say god forbid you lose your job and can’t pay your mortgage and you can’t sell the house for a profit what will you do?

My Idea on buying a house

In my opinion buying house is rarely the smart road to take. I’ve never met a person that likes getting into debt just so they can work hard to get out. Once you have a mortgage you are in debt to the bank. When you go to work the reality is you’re working for the bank. I know some of you are saying yes but a house is an asset and I can sell it one day for more than I paid for it. This might be true if you own the house but it’s seldom true if you have a mortgage. For the record the word “mortgage” actually means “death pledge” and it’s called this because most people never pay off their mortgage.

Now I know many of you people reading this love to gamble, but betting against the house in this instance “the bank” is not something I would do, when Obama took office and we had the financial meltdown who got bailed out? The banks did which means the house won.

Personally I think a person with a savers or investors mentality can easily purchase a house cash in a few years if they discipline themselves hard enough, many of the people reading this make lots of money per year but the problem for many of you is you spend as much money as you make.

If you have out of control spending and you have a hard time saving or investing money wisely now, what makes you think this will change once you sign the “death pledge” known as the mortgage? Another thing I want to point out about owning a home is that you really never own your home. Paying property tax is another way of the government saying we own your home and you just live there.

Renting Verse Owning a Home

Is renting really all that bad? You need to seriously ask yourself that question. Because for me renting means flexibility it means I can move anytime I want, sure I have to abide by the landlords rules but the landlord still has to respect me as a paying tenant.

Laws have been set up to protect tenants. Another thing that must be pointed out is there’s less responsibility and less bills to pay when you rent. The point I’m trying to make is once you sign the “death pledge” aka the mortgage you’re basically renting a house anyway the only difference is you’re now liable for more of the damages related to the home. You’re also responsible if the value of the home decreases.

Personally I think if you can’t put at least 65% down on the home you want to purchase don’t do it. Don’t be a slave to the bank, be smart and save or invest. Put money away or invest money into cash producing assets and use the money you saved or invested to purchase your house. It might take you longer but at least you’ll be stress free.

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