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Why rent?

I have read several times on this site that it is better to rent than to own. But if you have settled in a town, and are sure you want to stay, wouldn't buying be a good alternative?

One concern I have heard from people is that people would know you have money because you own your home. My question is who would know? Couldn't you say you're renting? Plus if you're living simply, would anyone be paying attention?

My thoughts were that if you are living on a limited monthly budget, but have money in savings, wouldn't it be worth it to buy and not have a monthly rent payment?

Any thoughts?

By corazon en colombia on Jul 31, 2006, 10:38 in Friendly Talkzone.

Ctg Bound says on Jul 31, 2006, 11:52:

corazon en colombia Yes you can just tell everybody you rent the place, most people wouldn't know differant.

I wouldn't see a purchase of a property in Colombia as a problem, unless it was some expensive piece of real estate, many Colombians own their own places without problems, so if you lived modestly like your neighbours in a modest apt, I wouldn't expect any real problems.

As to if the property is worth buying in comparison to renting, you will have to work that out on a area by area basis.

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miamimike says on Jul 31, 2006, 14:42:

Unless you are assured of High Appreciation Rates and thats questionable in Colombia and also with the peso devaluation, its less of a headache to rent; Rents are very reasonable. If you decide you want to move, its a pretty easy transaction, not so if you own. Then its a headache transferring the Money back to the states ect. Seems like sooner or later, neighbors find out your business in Colombia. Secrets there are hard to guard,,,,

On Sept 17, 2008: Senator John McCain said, as he had many times before, that he believed the fundamentals of the economy were "strong."Hours later he backpedaled, explaining that he had meant that American workers were Strong.

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Miguel_Clavo says on Jul 31, 2006, 18:07:

I prefer to rent as there are many cities that i want to live in and experience, and you cant do that very easily, like Miamimike says....Rents are so ridiculously low, that it makes being mobile more attractive to me.

Just my opinion...

Miguel_Clavo...Listo!! Libertad!!!...Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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Rubiazo says on Jul 31, 2006, 21:12:

IN my gf's case they want to sell the apartment she's paying 400k a month to rent to her for 74 million. That's like 25 YEARS worth of rent at the current rate. Hardly sounds worth it to me.

In the US if you can't get the mortgage payment lower than what it would be to rent, it's not a good buy. In Colombia they have shorter mortgage terms and higher interest so the same rule can't apply, but I'd say that anything that costs more than 12 years of the rental income it would generate is risky.

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