Buying a home can be better than renting in some situations. Overall, I like to say buying over renting, but the statement that "renting is throwing away money" is not necessarily true. Are you shocked that a real estate agent can even utter those words? Well, let me give you three reasons why I believe buying a home can be better than renting in some situations.
1. In order to purchase a home, you must be emotionally ready for this life changing event. Life changing because a lot of your free time will go towards the care and maintenance of your home. You will spend weekends raking leaves, cutting grass, cleaning gutters, and time and money on home improvement projects.
2. It will take you anywhere from 5-20 years to build up significant equity in your home. The majority of your mortgage payments will go towards interest in the first 10 years.
3. There are other expenses to consider besides interest. You must also pay homeowners insurance, property, and school taxes.
With that being said, homeownership can be a very lucrative investment if you plan of living in one place for 2 years or more. It is also a great investment for you if you do not invest in anything else, like the stock market while you are renting. Homeownership can be a forced, systematic investment plan. Renting should only be done on a short term basis and also in conjunction with an profitable investment plan.
For more information on renting vs buying, please reach out to me with any questions
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