Because the truth is that the up-front costs of buying a house are significant, and it typically several years before you can hope to break even compared to renting. Which means that in many cases, it actually a smarter financial decision to rent than to buy a house.
People also ask
Is it better to rent or buy a house?
That’s really a difficult question to answer, but you could make a good argument that renting is the better option if you’re investing money every year. Most people do not appreciate the fact that average year-to-year maintenance runs from 1% to 3% of a home’s cost, Costa says.
Does it make sense to rent or own a home?
But owning a home doesn make sense for everyone, and in some areas renting could be the smartest move. (Full disclosure: I own my New York coop but I often wonder why擭ew York has great rental stock and regulated landlords.)
Should you rent or buy a home in 2018?
Should you rent or buy a home? Prices are surging in both cases, which makes it complicated Home prices are rising faster than rents, which is shrinking the affordability gap between being a homeowner and a tenant.
Is buying a house smart or a waste of money?
Conventional wisdom says that buying a house is smart and renting is a waste of money. After all, why would you spend your money paying down someone else mortgage? That just silly! And if you plan on staying in your home forever, the conventional wisdom usually holds true.