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It dawned on me last night, that in the long term, as I grow older, it would make more sense to actually rent. Some of the reasons being that 1. Am single, so i have no need to put my assets in property. summore, nobody to pass on to 2. As I age, I free my properties for liquidity 3. I dun really need a home, but sth to sleep. I can sleep in a tent for alli care...hahaha, or get a MAser and sleep in it. Been reading and this argument has been debated ad nauseum. Discuss. http://www.forbes.com/sites/billconerly/2013/11/11/should-you-buy-a-house-or-rent-the-economics-of-homeownership/ Should You Buy A House Or Rent? The Economics Of Homeownership 4 comments, 4 called-out Comment NowFollow Comments All the 20-somethings who have jobs are asking me: should we buy a house or keep renting? The answer isn’t so easy. The common wisdom for decades was to buy a house as soon as you can, because it’s a great investment. That “wisdom” turned lots of people upside down in the past decade. Let’s take a cold, hard look at the economics of owning a home. In the past, the own-or-rent decision was largely about whether to live in a house or apartment. That’s no longer true. Condos allow ownership of a multi-family residence, and the opportunities to rent a stand-alone house are greater than ever before. So the own-rent decision should be apples-to-apples with comparable properties. If you are thinking about moving from a small apartment and buying a medium sized house, you’ll find that it’s more expensive simply because you’re getting more square footage and a yard. Is housing still a good investment? Since 1975, housing has appreciated by an average of 4.5 percent per year. (Good data start in 1975.) Estimates of housing appreciation since 1890 (courtesy of Robert Shiller) show 3.0 percent annual increases in nominal value, and just a hair above zero after adjusting for inflation. Stocks, on the other hand, have a long-run average return of 9.8 percent including dividends. Housing seems to be a great investment in good times because it is usually leveraged to a great degree. With a 20 percent down payment, a price increase of just three percent turns into a 15 percent increase in the homeowner’s equity. (Do some arithmetic with a hypothetical $100,000 home to verify that result.) Real estate proponents call this the “cash-on-cash” return. However, leverage applies to the downside as well. With 20 percent down, a 20 percent price decline wipes out all of the buyer’s equity. That’s not an outlandish scenario, we’ve learned from the price declines of the recent housing bust. Interest on home mortgages is deductible, which sounds good but is frequently overrated. Yes, it’s deductible. But the deductibility doesn’t offset the fact that you are paying someone interest. It’s an expense, and you are worse off because of it. If you want a big tax deduction, you could make a contribution to charity. You’ll end up with less money than before your contribution despite the deduction. The same is true for interest expense. It may be worthwhile, all things considered, but it’s still an expense. Talk to your accountant first, because the actual benefit from a deduction varies from family to family. The housing-stock market comparison ignores a key point: housing pays something like a dividend in that you can live in it without paying rent. To be as good as stocks (on average), the benefit from living in a house has to pay an “occupancy dividend” of about seven percent. So if you’re thinking of a $200,000 home, you need to get $14,000 per year of benefit from living in it. That’s comparable to $1,167 of monthly rent, before we get around to the pesky details. When you rent, the landlord picks up the taxes, insurance, maintenance and sometimes utilities. If you buy, plan on replacing the water heater some years, the back fence other years, the roof occasionally. Hope that you don’t need to replace all of them the same year. If you are going to hire out all of the maintenance, you’ll probably pay more than your landlord does. The landlord is in the business of maintaining properties and is probably very efficient. However, if you can do some of it yourself, your cash outlays will be much less than the landlord’s. And you can do it yourself if you’re be willing to learn. Try Googling “leaky faucet” and you’ll find plenty of advice. Most people thinking about buying compare monthly payments to rent, which is a good starting point. However, some of that monthly payment goes to principal. It’s like saving. To put buying on a level playing field with renting, look at just the part of the monthly payment that will go to interest. Example: you borrow $200,000 house with a 30-year mortgage at 4.25 percent. Your monthly payment would be $993, but $285 of that would be going to principal. (Your parents will be surprised that you’re paying so much to principal. When they got their first mortgage, rates were much higher and only a small portion of their payments went to principal.) To do your own calculations, use Excel functions PMT, IPMT and PPMT. Transaction costs are large in housing. Real estate agents charge six to seven percent commission on sales, which will make moving expensive. You can sell the house yourself, but keep in mind that it’s a lot of work and your house may not be exposed to as many buyers, reducing the price you can get for it. This argues against buying unless you are confident you want to stay in the house for several years, preferably even longer. Renters should keep in mind that they do not control their housing destiny. If the landlord decides to sell the property, you’ll be looking for a new home. The landlord can also raise the rent at the end of the lease. The landlord can also decide not to rent to you, though that’s rare for people who are well behaved. One of the benefits of owning a house is the ability to do with it what you want (subject to neighborhood rules, of course). When your daughter wants her bedroom walls black, you can be the cool parents who show her how to use a paint roller. You can build that gazebo in the back yard and have toilets in any color of the rainbow. Owning a house gives you some flexibility, but also requires flexibility. When you get a bonus from work, you can upgrade your housing by adding a hot tub. Renters don’t have that option. When you lose your job, you can defer replacing the carpet. Flexibility is required of you, too. When the roof starts to leak, there’s no telling the rain that this is a bad time. You need to have reserves for unplanned repairs. So now you’re ready for the economist to give you a conclusion. However, there are too many emotional factors for a mathematical solution. I recommend running the numbers as best you can, then asking yourself if the psychic benefits are worth the cost

Anyone has experiences with driving around Taiwan? And tips to provide for left hand drive countries, car rental company etc. Generally public transport such as the Metro is far more convenient than a car (no need to find parking etc) but if we're talking about going out of Taipei, would you recommend driving or just taking the bullet train?

obigood!

Hi guys, First time trying to rent a car in Bangkok Anything to look out for and which are the more reliable rental agents What is the total deposit required and additional charges? E.g. how much is their insurance with 0 excess And I read just produce our Singapore driving licence will do I check for 5 days 4 nights at Hertz is less than sgd $200 for yaris equivalent . Likely moving only around bangkok, yes I know mrt is easier but intend to try out driving a car in bangkok

Hi, thinking of renting a car in SG and drive to Johor for a short family trip. Anyone care to share some advice? e.g. which rental co.? need to buy additional insurance to cover the vehicle being stolen? things to look out for when renting? Thanks in advance.

Hi all, my friends and i are planning a trip up north... thinking of renting a mini-bus... around 15 of us. Anyone can recommend lobang for this?

Hello all, Is it compulsory to declare to HDB and IRAS if renting a room in a HDB flat ?

currrently my frenz is waiting for his car to be ready hence he wanna rent one .. with 600 - 800 budget wat can he get or ani one here renting??

Hey peps... any idea to find or chance to rent a bungalow for 2 days on new years eve...??? Am organizing a mini party for a family of 10-15 people... budget around 200-400 bucks...

Hello, I will be flying off to Brisbane/Goldcoast this Saturday and I will be renting a car there for the very first time. I plan to book the car thru AVIS website but the strange thing is the local office website(avis.com.sg) gives a much higher quote as compared to when i tried going to Australia AVIS website. Anyone experience this before? What might the reason???

Hi bros, I need to rent a 10 ft lorry due to shifting house. Need to carry stuffs from bedok to tampines. Any idea where can i rent a day lorry nearby east side? Please advise...Thx.

Hi all, Contemplating to rent out my HDB flat since we are relocating. I've not rented out any property before so would like to tap on the experienced one on what to look out for? My concern would be whether that tenant will take care of the household items including my beloved timber flooring of the entire house. Any legal matters that I should be aware of? such as stamp duty, lawyer fees, HDB levy and etc? Kindly advise me. Thank you very much. Regards,

Hi guys anyone know where to rent BMW M3 for wedding?

Interest check. Wondering if anyone here would consider renting furnished apartment for short trips to KL over serviced apartments?

wanna rent one on year end...........for few days anyone knows?? Downtown car rental has only the new ones

Hi all, wanne to rent out my car( belta vios ) red colour, manual. Renting out at $700 inclusive of road tax and insurance. Car is 3 yrs old with 47k mileage with normal car plate( No restriction time on driving). Looking for sincere and reliable guy, i did not want to end up receiving summon and accident statement in the end after the car rented out due to unethic behaviour. Pls note, private renting out car in singapore is illegal. So i really need the person to be responsible when take over the car. If u r really interested, pls PM me. ps: sorry, guys. pls PM me if u r have experience at least 3 yrs driving on road.

Anyone knows of any? I have got one but i need to have a few in case my contact that day say no van. Have 2 years driving experience.

Anyone knows where can rent forester for my big day

ELECTRIC NEWS Firm helped pay car owner's monthly instalments for his vehicle Fined for renting out car illegally By Hedy Khoo February 23, 2009 CAN'T afford to pay the monthly instalments on your car loan? Renting out your car might seem an attractive option. But beware. QUIET: The office of Starzfocus Car Rental where Lawrence Yong rented out his car in return for it paying his monthly car instalments. An owner handed over his car to a car rental company in return for the company paying his monthly instalments. But what Lawrence Yong Shao Ping, 30, did not realise was that he did not have the required motor insurance for such a transaction. He had to cough up a fine of $500 and was disqualified from driving for a year for renting out his car illegally. He was caught when a hirer who took his car from the rental company was stopped at Ang Mo Kio in September 2007 by a Land Transport Authority officer. In 2005, Yong had handed over his car, which he bought in 2004, to Starzfocus 2 Rental Enterprise in return for the rental company paying $800 for his monthly instalment. Starzfocus then leased the car to one Mr Jeevan Shanmugam from September 2007. Professional According to court papers, Yong had been recommended to Starzfocus by a friend who told him that 'it was a reputable company'. He also noticed that the company was 'well furnished and appeared to be run in a professional and experienced manner', and 'there were many cars on the premises'. This gave him the 'confidence that he was dealing with professional, experienced and honest persons'. Yong was introduced to a director of the company, Alan Goh, and told that the company would pay $800 for the car's monthly instalments. In mitigation, Yong's counsel said his client thought the rental company was 'fully aware and conversant and in compliance with the laws, rules and regulations relating to the motor trade and motor rental business'. The car company also informed him that it had its own insurance policy to cover the rental of vehicles. He was shown the standard terms and conditions which a hirer would have to sign and told that the hirer could take out an insurance policy for the duration of the hire. He was further assured that he could make a third party claim in the event his vehicle was involved in an accident involving other drivers. His mitigation plea stated that Yong did not gain financially and continued to suffer a loss. He was only trying to reduce his losses by renting out his car, instead of selling it. Assured While his car was with Starzfocus, the company had settled numerous traffic fines and even settled insurance claims from two major accidents the car was involved in without using Yong's insurance coverage. This further convinced him that the company's assurances to him were true. Yong claimed that he had been misled and was unaware that the rental arrangement was illegal until informed by the LTA. District Judge Salina Ishak considered that ignorance of the law is no excuse, but said that companies which offer such services are 'very much prevalent and a growing phenomenon', such that they 'give credence that such practices are acceptable and legal'. She pointed out that the rationale for the Motor Vehicles (Third Party Risks and Compensation) Act is to ensure that pedestrians and the motoring public will be able to recover compensation from an offender if he injures or kills someone. As Yong's car was registered as a private vehicle, the insurance policy for the car would be for private use and not for reward or hire. She noted that generally, private car owners are not permitted to rent out their vehicles unless they do so under the Private Car Rental Scheme introduced by the LTA. )Under the scheme, private cars can be rented on weekends from Friday 7pm to the following Monday 7am. But owners have to ensure adequate insurance coverage for the period of rental. The judge pointed out that as a car owner, Yong should have checked that his car was properly insured. But he had chosen to 'turn a blind eye' and rely on the assurances made by the representatives of the rental company. So the judge said Yong was 'not without blame but in fact is wholly to blame for his misfortune'. He could have been fined up to $1,000 and jailed up to three months. My question here is why was he being disqualified from driving

Hi guys, am going to KL next month and would like to explore the city on motorcycle prefer small cc bike, ie honda cab/wave.. any bros with rental company contacts please help.. thanks in advance

hi guys, wanna tap on the expertise on all the experts here. Can i rent out my ride for long term basis? (provided got black and white and is the person renting is a person i trust?) any implications or things i need to take note of?

Hi guys, 1. I've no experience in renting a place before. Apart from agents' talks, would like to find out from the gurus here about the do's and don'ts of renting? 2. Is it true that the market norm for rental is at least a year? Can demand to use or don't use landlord furnitures and get them to move out? Can demand landlord not holding any keys and all visitation must have prior arrangement? 3. What are consider as wear and tear items in a rented place? You know lah, those wooden floorings are prone to scratches and things like that? How about faulty air-con, can demand landlord to pay after repair? Can a landlord transfer voting rights to a tenant? Please advise me. Thank you very much. Regards,

thanks to guyver , i managed to secure a rental of 2 months plus till my wolf in sheep colour arrive my impression of the toyota axio reasonable quality has steering of a boat has a floating feeling ,no wonder so many toyota goes into drain BLOODY FUEL EFFEICIENT it a car for point a to b not for racing or anything than that but thanks to guyver got a good deal thank you , dont worry your car now park safely in car park for the rest of the nite while i watch tv 2 months plus till the arrival of my whittie cabrio

I'm curious.. when people rent out their house, they are doing it via an agent or direct? How about the furnishings in the house.. suppose to empty it or let the tenant use (subject to certain agreement right?) If agent, how much usually they will charge, and would they help to take care of the bills/wellbeing of the things inside?

Hi, wanna know if any car company in sg would allow rental of a car (suv/mpv) to malaysia? been lookin around and most onli allow for driving in SG