Buying vs. Renting while paying loans

[SimbaStatin]

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Hi all! So I'm debating between buying a house or renting an apt. The nicer apts in my area start at about $1100...Still have loans to pay off and making progress but I just want to upgrade a little. I live beneath my means and will continue but it's getting kinda boring lol. Classmates seem to be living it up lol. Any advice you can offer would be great! Thank you

 

[confettiflyer]

http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0

 

[PharmtoCS]

Continue to live below your means and don't succumb to FOMO.

 

[PharmDBro2017]

Don't try to keep up with the Joneses, live small and reap the rewards later while they all continue to be a slave to debt.

 

[CYP-0]

Hi all! So I'm debating between buying a house or renting an apt. The nicer apts in my area start at about $1100...Still have loans to pay off and making progress but I just want to upgrade a little. I live beneath my means and will continue but it's getting kinda boring lol. Classmates seem to be living it up lol. Any advice you can offer would be great! Thank you

There are many unknown, sensitive/confidential variables that need to be disclosed from your end before a more accurate response can be tailored for you. Obviously, that will not...and should not happen on a public forum. Best bet, seek out a financial adviser or planner, if you are unsure how to balance up your numbers. I plan to do the same myself in a near future.

With regards to your classmates "living it up," this saying applies, "not all that glitter are gold." Don't believe everything you see/hear. Besides, I'm pretty sure that your circumstance is not equal to theirs.

 

[BMBiology]

Hi all! So I'm debating between buying a house or renting an apt. The nicer apts in my area start at about $1100...Still have loans to pay off and making progress but I just want to upgrade a little. I live beneath my means and will continue but it's getting kinda boring lol. Classmates seem to be living it up lol. Any advice you can offer would be great! Thank you

Remember people are not going to think you are successful unless you post pictures on FB:

- driving a brand new car (or looks new)
- eating exotic food
- living in a luxury condo
- going on a fancy vacation

You need "Likes". You deserve them.


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[gwarm01]

- driving a brand new car (or looks new)

Do yourself a favor and just get the new car. Don't be like me and buy a used Audi TT even if it looks clean and good as new. Trust me on this one.

 

[Unsure90]

Do yourself a favor and just get the new car. Don't be like me and buy a used Audi TT even if it looks clean and good as new. Trust me on this one.

wait what's wrong with used?

 

[gwarm01]

wait what's wrong with used?

Your average used sedan could be a great deal if maintained properly. Your average 2-seater German sports convertable may have been driven very hard and could have some issues that weren't apparent at first. I got it at a great price, but it's just one thing after the other with this car.

 

[sakigt]

Your average used sedan could be a great deal if maintained properly. Your average 2-seater German sports convertable may have been driven very hard and could have some issues that weren't apparent at first. I got it at a great price, but it's just one thing after the other with this car.

Those are Audis in general.....

 

[Momus]

Those are Audis in general.....

Audi is one of the worst cars in terms of reliability.

Car is getting you from point A to point B, nothing else.

 

[pezdispenser]

Audi is one of the worst cars in terms of reliability.

Car is getting you from point A to point B, nothing else.

Hey I actually have a 2012 Audi A6 that I put 50k miles on so far and it has been surprisingly solid despite what everyone says. Smooth, quiet, comfortable, doesn't burn oil, gets an amazing 32 mpg overall.

Consumer Reports has Audi at #4 on their reliability rankings: http://www.consumerreports.org/car-reliability/car-brands-reliability-how-they-stack-up/

 

[Dalteparin]

Do you plan to stay in your current city for 5+ years? Do you want the responsibility of home repairs, appliance repairs, yard work? Are you prepared to pay taxes and HOA dues on top of your mortgage? If you answered no to any of the above, don't buy a house even if your loan is $0.


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[owlegrad]

Do you plan to stay in your current city for 5+ years? Do you want the responsibility of home repairs, appliance repairs, yard work? Are you prepared to pay taxes and HOA dues on top of your mortgage? If you answered no to any of the above, don't buy a house even if your loan is $0.


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You shouldn't be having yard work if you pay HOA dues? Anyway you can get a lawn company to take care of basic stuff for pretty cheap.

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[ldiot]

It depends on if you have a family and what your career goals are. I'd probably rent cheap, get out of debt, then buy something nice instead of buying something cheap and upgrading later in which case money is lost to the cost of the transaction (closing costs/realtor fees/mortgage disbursement fee/taxes)

 

[sosoo]

if u work for cvs, the job security is not there, pay off debt so u can set yourself free. ..if u work for other companies, put money in the house, a few years later it'll gain more value.

 

[ldiot]

if u work for cvs, the job security is not there, pay off debt so u can set yourself free. ..if u work for other companies, put money in the house, a few years later it'll gain more value.

Is CVS really not a secure job? Since nobody wants to work there shouldn't it mean there is actually more job security? Plus they are one of the biggest chains so there are stores everywhere, it's not like they are financially unstable.

 

[CMUchicka]

Those are Audis in general.....

What do you think about Tesla? I always thought of buying it after graduation but now I think it's bad idea financially especially as a new grad.

 

[ldiot]

What do you think about Tesla? I always thought of buying it after graduation but now I think it's bad idea financially especially as a new grad.

Well if you are buying it to save on gas realize that you'd probably have to drive it like a million miles before you get ahead. So if you are buying it to save money it's stupid, if you want to buy it because you like the car and can afford it then do what you want to do. I almost view the car as a piece of tech more than a car which means it will probably be outdated before you even drive it home. Plus you have to put in a charging station which I'm assuming costs money and adds to your electric bill, or you have to buy solar panels and put those up too lol. They apparently have public charging stations but I've never seen one, plus you have to sit around for 30 minutes while it charges. The cars are cool and the high end ones look good and are fast but I don't think I'd want one. I was watching a video and it's weird watching a car do 0-60 in under 3 seconds while making pretty much no noise.

 

[Dalteparin]

You shouldn't be having yard work if you pay HOA dues? Anyway you can get a lawn company to take care of basic stuff for pretty cheap.

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Really? My HOA doesn't do that.

 

[owlegrad]

Really? My HOA doesn't do that.

Obviously varies by HOA. I didn't realize there were HOAs that didn't.

Does your HOA just make up rules for you to live by then? 😉

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[TheBlaah]

What do you think about Tesla? I always thought of buying it after graduation but now I think it's bad idea financially especially as a new grad.

Well if you are buying it to save on gas realize that you'd probably have to drive it like a million miles before you get ahead. So if you are buying it to save money it's stupid, if you want to buy it because you like the car and can afford it then do what you want to do. I almost view the car as a piece of tech more than a car which means it will probably be outdated before you even drive it home. Plus you have to put in a charging station which I'm assuming costs money and adds to your electric bill, or you have to buy solar panels and put those up too lol. They apparently have public charging stations but I've never seen one, plus you have to sit around for 30 minutes while it charges. The cars are cool and the high end ones look good and are fast but I don't think I'd want one. I was watching a video and it's weird watching a car do 0-60 in under 3 seconds while making pretty much no noise.

I would say it depends. At the end of the day, it's still considered a luxury car and will likely never be considered a financially good decision. That being said, I'm likely going to buy one. My reasons are, in order of priority: I can comfortably afford it, I appreciate the car's design and technology/safety features, and I support Tesla as a company (both in terms of its environmentally friendly goals and its decision to manufacture within the US).

I'm inclined to disagree with the statement that it will be "outdated" quickly. It's true the processing/computing power of the tech systems in the car will likely be outdated sooner or later, but how much processing power do you need for stuff you do in your car anyway. In terms of its software/user interface, that's updated regularly over-the-air. The home charging system (there's a mobile charger though I wouldn't recommend relying solely on that) installation costs around $300-500. A drop in the bucket, but not something I'd concern myself over too much if you're even considering buying a Tesla in the first place.

Lastly, another factor you should consider is where you currently live. What are the availability of charging stations and state tax credits? If you live in California with a $2500 rebate and with superchargers abound and some companies there even have chargers in their parking lots, I'd consider it more (one of my friends charges his Tesla at work, and then gets reimbursed driving time as well).

 

[Dalteparin]

Obviously varies by HOA. I didn't realize there were HOAs that didn't.

Does your HOA just make up rules for you to live by then? 😉

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Don't currently have an HOA (renting) but yes, all the last one did was make up stupid rules and scream, "NIMBY!!!" every time a business wanted to build something that might've brought actual jobs to our town.

 

[gwarm01]

What do you think about Tesla? I always thought of buying it after graduation but now I think it's bad idea financially especially as a new grad.

I've had a Model 3 reserved since it was first revealed last March. With a starting price of $35,000, it is a much easier pill to swallow. It's a compact sedan more in line with the size of a BMW 3-series, which is a much more attractive size for me as well. I'd give that a look if you're interested in the brand.

Plus you have to put in a charging station which I'm assuming costs money and adds to your electric bill

This is a common misconception! While it's true that you can install a special Tesla charger, it's entirely possible to charge them off of any standard outlet. A two-prong 110V outlet will only give you a pitiful 3 miles/hr of charge, however. Tesla recommends the average owner to install a NEMA 14-50 outlet, a common outlet you may already have available, which allows ~30 miles/hr of charge. This should be more than sufficient to provide a full charge overnight.

Side note: Your electric bill will increase, but it is far cheaper to keep a car charged than it is to fill your gas tank. You can do the math yourself by looking up the kWh rate for your local electric provider.

I'm inclined to disagree with the statement that it will be "outdated" quickly.

I can understand the sentiment. Tesla does provider a lot of updates wireless, but they have steadily improved the hardware features of their cars as well. I'm slightly worried about getting an early Model 3 for this reason. Full autopilot is a big feature for me, but it won't be completely active when the first cars start rolling out. There's always the chance that full auto will require additional hardware that isn't included. I'm hoping this will be a 10+ year car so I'm keeping my fingers crossed.

 

[CYP-0]

Full autopilot is a big feature for me, but it won't be completely active when the first cars start rolling out.

I envy all of you that are ready to embrace the full autopilot technology. As nice as such a feature sounds, I have been unable to complete the imagination of "one wrong glitch + 75 mph + crossing a bridge + on my way back home from a 2nd shift..."

Any chance they might include a driver-eject feature in a near future? We already have airbags, what's an extra parachute?

 

[gwarm01]

I envy all of you that are ready to embrace the full autopilot technology. As nice as such a feature sounds, I have been unable to complete the imagination of "one wrong glitch + 75 mph + crossing a bridge + on my way back home from a 2nd shift..."

Any chance they might include a driver-eject feature in a near future? We already have airbags, what's an extra parachute?

I'm not 100% of the way there yet. I'm at the "I want to believe" stage currently. I'd be cautious until it was well proven, but sometimes my commute feels like I could close my eyes and still make it there just fine. The real test would be driving the 100+ miles of dark, cury, rural mountain roads to visit my parents. I don't know that I could ever trust my car to do that on its own. I guess I could send it on a few trial runs by itself just to prove to me that it can handle it.

 

[BenJammin]

I preordered a Tesla Model 3 on day 1. Can't wait.

 

[CMUchicka]

I've had a Model 3 reserved since it was first revealed last March. With a starting price of $35,000, it is a much easier pill to swallow. It's a compact sedan more in line with the size of a BMW 3-series, which is a much more attractive size for me as well. I'd give that a look if you're interested in the brand.

I was kinda disappointed when they came out with cheap model lol. I purely wanted buy it because of its status and how everyone around us didn't have it.😛 Anyways, congrats on your purchase,let me know how it is once you get it. I am interested in model S though.

 

[CYP-0]

The real test would be driving the 100+ miles of dark, cury, rural mountain roads to visit my parents. I don't know that I could ever trust my car to do that on its own. I guess I could send it on a few trial runs by itself just to prove to me that it can handle it.

It will probably pass the test with flying colors. The REAL trial would include you inside it. I can't imagine much room for remediation if it fails the latter (hopefully not).

 

[Muse600]

I say it all depends on the math

buy + roommates + tax benefits + appreciation *can* = renting a room in a house

I keep pondering it and went with buying rental properties...but I never find myself really saving a lot of $$

 

[SimbaStatin]

Thanks for all the replies. I'm not too concerned about job security, I live in an area that would be deemed undesirable to many (still opportunities for sign-on's here.) I can't say for sure that I'll be in the area for 5 years so I'm thinking I'll just rent. No fomo here just that "I work hard so I deserve it" thought process kicking in lol. I'll continue to live below my means though and knock these loans out (with a nice trip q now and then lol.) Small rewards to self makes working like we do much more bearable lol

 

[Eichhoernchen]

I rent with a roommate, it's not so bad, and I really cannot afford to buy anything any time soon..