I don’t know what your real estate market is like around you, but I would suggest finding out how much you can afford in a mortgage, and then buying a house that’s half that price, and saving that extra money for helping other people.. Or do a shorter mortgage and therefore paying off the debt sooner, as well as paying less interest overall.

You could likely buy a house in a “not so nice” neighborhood, and be helping the people around you and saving money to help those who need some help that way..

I didn’t mention renting, bc i can’t really see a benefit to it. You may not be paying mortgages, taxes and repairs directly, but you are still paying someone else to pay those things for you..

Just some ideas that I’m sure you’ve thought of, but didn’t mention..

ta ta,
James

First, renting is only marginally less risky ( nothing in life is risk free ), for example your landlord could sell the property and the new landlord has no limitations as to how much they raise the rent ( otherwise a landlord can only raise the rent 6% a year – which is higher than the inflation rate ). Also the landlord could default on his mortgage and the property be sold.

Secondly, as a tenant you have to give 60 days notice to move. In Sarnia, people are selling homes somtimes before the sign goes up and usually have a 60 – 90 day closing date. Also, saying you’re not responsible for damages isn’t true either. If your landlord performed a pre-spection with you, he can hold you responsible for any damages incurred to his property.

Thirdly, the cost of owning a home is not necessarily much more than renting. There are lower cost home like condos ( which is what I’m in ) which allow you to not worry about any external costs because they are included on the condo fees. We were in an apartment paying about $550 for rent and insurance and utilities. This was a very small two bedroom apartment. Now we’re in a condo paying about $700 for utilities, land tax, condo fees and mortgage, which has 3 bedrooms, a backyard and a basement.

Fourthly, paying rent yields no return as you have indentified and planning for tomorrow IS scriptural. Look at Jesus’ example of the talents. The servant who buried his was punished. We should LIVE like Christ will return today and PLAN like he won’t in our lifetime. Planning for tomorrow is not a lack of faith.

Renting is for life, a mortgage gets paid off and then renting becomes FAR MORE EXPENSIVE. Also, there is far more flexibilty in how you pay your mortgage and it can be redone to adjust to your changing financial situation – something rent cannot do.

Lastly, no one is going to financially support you when you’re old. The amount provided by Canada Pension is a pittence. Making these arrangements is good stewardship. Buying a house is generally cheaper today than tomorrow.

To sum it up, buying a home is usually far better when looking at all the factors involved, especially when you calculate over a 60 year period, you will pay FAR more to rent over that time than to own.

Rich and I don’t have a house that we own yet, and haven’t done too much investigating yet as we aren’t in a position to buy responsibly yet. I just wanted to throw in a couple things. First, I completely agree with what Dean said about planning for tomorrow and living like Jesus is coming back today. If you did buy, when your mortgage was paid off if you have planned for the future well, you could retire as comfortably as you like and use any income you want to provide for others. I don’t mean buy the extravagant stuff now and plan to give to others down the road, but plan, give, and when you are at the end of your money making road, give more. Easier said than done.

Also, I read something very interesting recently (can’t remember where) that presented an argument against buying in downtown areas that are maybe a bit “shadier”. There are so many middle class families buying cheap housing in lower class areas they are not helping as much as they think they are, they are actually taking affordable housing away from the lower class families that could otherwise afford to live in a home. Not sure how accurate that is in all cities, but it definitely makes sense to me.

I hope you find what God wants the two of you to do, and I have no doubt whichever way you go if you are following him he will bless you in many, many ways. Love you both.

What’s more is the housing market is bottoming out in the US and it’s going to happen here. Now is the time to get rid of your properties. If you want I can send you some articles on the topic.

Tom

Not saying that you shouldn’t eventually want to own your own home. But don’t see a need for anyone to go out and get a loan for it.

That is throwing money away. Because of interest, which can rise in some instances. Which is why some homes are being foreclosed on. And not knowing what could happen as far as price of living increases.

But if you can bare to rent, and rent cheap and save your money in a savings account you could probably buy you a house within 5 to 10 years straight up cash without struggling with a 30 year mortgage.

For example, if you live somewhere with cheap rent and you can manage to set back just a hundred dollars a week. Which you may be able to do more. In ten years that would be 48,000 dollars plus whatever interest you earn from your bank. Where I’m from I’ve seen nice looking houses go for about 30 some thousand dollars.

Saving is the best way to to achieve your goals. Not borrowing. Think long term and not short term.