04/18/2024
Is It Better To Rent Than Buy a Home Right Now?
You may have seen reports in the news recently saying it’s more affordable to rent right now than it is to buy a home.
How Equity Changes the Game
If you rent, your monthly rental payments only go toward covering your housing costs and your landlord’s expenses. So other than saving a bit more per month and maybe getting your rental deposit back when you move, the money you spent on housing each month is gone – forever.
When you buy, your monthly mortgage payment pays for your shelter, but it also acts as an investment. That investment grows in the form of equity as you make your mortgage payment each month and chip away at what you owe on your home loan. Your equity gets an extra boost as home values climb – which they typically do.
Imagine you purchased a home for $400,000 at the start of this year. Chances are, since you bought, you plan to...
You may have seen reports in the news recently saying it’s more affordable to rent right now than it is to buy a home.