Buying vs Renting - your opinions?

[Greatnestwithin]

@Leo Gura congrats on that. And I loved your last video.

[Michael569]

On 01/05/2024 at 9:24 PM, aurum said:

There is definitely something comforting about a childhood home. My parents still have ours, and there is something nice about being able to visit as an adult. Everything feels very familiar, stable and safe. It's kind of like a rock in a world that sometimes can feel crazy, confusing, scary and tumultuous.  

yeah, that's exactly how I feel about my family home. It is more of a habit thing rather than something I think is essential but it feels like you have a safety net, in case things went terribly for you in life, you have a place to return. On some subconscious level, it gives me a sense of security. 

On 01/05/2024 at 9:45 PM, Snader said:

but for example in Finland you pay so much interest at the moment that many of my friends have decided to rent instead of buying. It doesn't seem to be a good investment at the moment and people tend to prefer putting money monthly into stocks and other investments instead, to be able to invest into housing later, when economy is more stable.

It is not great at the moment in the UK either. The interest rates are high and increasing and I am honestly scared to mortgage my ass for 40 years. One way or the other I still have to pay either a landlord or the bank, it kinda feels like the house will never truly be yours until you're like 75 and can finally pay it off. Although people's income changes and you can re-mortgage to adjust terms. 

On 01/05/2024 at 9:45 PM, Snader said:

Also if you are handy

not particularly  but I hear this is something that can be learnt. 

On 01/05/2024 at 9:45 PM, Snader said:

would be more concerned about the area; Is it safe, is there possibilities for hobbies, good schools and other important services? The form of living doesn't affect a child per se, unless there are some status indicators at play.

yeah, I pay a lot of attention to those factors. Not only you want a safe neighbourhood but you want to make sure there are sufficient nurseries, elementary schools, places for kids to do hobbies, infrastructure (so that you don't have to cab your kids around for 12 years), at the same time if the area is too overinflated with lot of rich movers, expect high council tax but also increasing cost of the property. 

On 01/05/2024 at 9:45 PM, Snader said:

What are your thoughts on the matter, do you have some specific (for example personal) insecurities around the subject of renting vs owning?

I am mostly worried about making a wrong choice and burning up tens of thousands of pounds on a  mistake. Like buying in wrong area or buying something that is in poor condition and then needing to sell it under-price. I am worried about tying myself down with expensive mortgage and creating a massive pressure that will impact the family psychologically. 

On 01/05/2024 at 9:45 PM, Snader said:

Getting a child is huge, as well as buying your first own apartment. If there are no hard reasons, then maybe it wouldn't hurt to first go through the first phases of parenting to see how it feels in terms of housing, and after that make the next possible move to considering buying an own house.

In Slovakia, where I come from, people generally have a mindset of "you must not bring a child to this world if it doesn't have a home" meaning you need to own before having a kid. I don't know if I agree with that but it is deeply rooted in my head. Like that you shouldn't be moving with a kid or be at risk of being evicted by a landlord when you have a baby. I think it is a very old school mentality and people nowadays rent while having kids. We want to start trying later this year closer to a wedding and might start looking at prices of flats around here as well. Maybe the step one would be to consider owning a flat and then moving to a house later. I'm trying to be openminded but I'm also being overly cautious. Thanks for your comments, I really appreciate it!

On 02/05/2024 at 10:54 AM, Davino said:

There are huge government helps in this regard, check them out. You could save a lot of money, contact a lawyer or an expert on the matter for advice to see if any option suits your family needs.

I will check this out, thank you! 

On 02/05/2024 at 10:54 AM, Davino said:

The principle problem with mortgage is that it's SPECIFICALLY designed be hard to understand and messy, to the best interest of banks. On top of this, laws change continuously and jurisprudency is a pain in the ass. So don't feel stupid or ignorant, the whole system is designed for this.

yeah, it does feel like that.

On 02/05/2024 at 10:54 AM, Davino said:

here are millions of different types of mortgage, for as little as I know, as a rule of thumb, static payments over time are usually better than those that change, although they will tell you: You will pay more Sir. Which can be true, but you know how much you pay each month, no surprises, and that gives peace and power of planification.

Seems like I've got some research to do. Thank you for all your insights, appreciate it! 

On 12/05/2024 at 1:04 PM, Rishabh R said:

Even tough I have no experience with this but when I was a child I lived in a rented house in a colony then my parents bought an apartment. Even tough it was painful for me to leave my old house back, I think that buying is better option so that you are independent in regard to your house 

thanks! There is definitely something to owning that you don't get from renting but maybe in the end it is the environment you create for the kid. Kids don't get worried about bills unless they see their parents being extremely stressed or their parents directly involve them in those debates, which I don't think is right. 

On 01/05/2024 at 10:30 PM, mmKay said:

ADHD us perspective. Surprisingly good.
 

 

this was surprisingly insightful, thanks for sharing.

21 hours ago, Leo Gura said:

But I wouldn't do it if it meant going into lots of debt and tying yourself up with 30 years of work to pay it off.

See technically you are always tying yourself even if you rent , right? Unless you can muster enough capital that you can just pay it off in a few years. I had that sense of security as a kid and only now, years later, I can appreciate how much it actually helped my emotional development. Have you ever talked about this in video or a blog? Would be interested to learn more from your experience. 

15 hours ago, RawJudah said:

In the UK, the housing market is insane! In a nice area a 2 bedroom house is like £200,000. 
Renting in the UK is also ridiculous. A lot of people have to move back in with their parents because they thought they could pay the rent, but in fact they can’t. 
Houses are for families. Absolutely. Renting a flat is not for families. Buying is very permanent, and renting is very casual. 

thanks! I like this perspective. Agreed, it is crazy over here but it is no better elsewhere. I think for people who have household income of at least 70K you're mostly fine being able to handle mortgage, childcare and everything else. But on low income, UK living is difficult. 

Edited May 20 by Michael569