Buying vs. renting is a personal choice and there are many factors to consider. Owning a home can mean being tied down to a location and the responsibility of making payments. Renters have more flexibility.
I recently read the comments on a friends Facebook page when she asked if she should rent or buy. The real estate agents who responded tended to be in favor of home ownership. I’ll admit I believe in homeownership and I even own a home but I don’t believe owning is the best choice for everyone.
A young professional may pay a steep price by staying put because of a house or from buying a house at the wrong time and having to sell it too soon. Making the long term commitment to owning a home at a young age may mean regretting the choice later on.
For some owning a home is a good choice. People who don’t plan on moving and who have children in school can own and build equity and then move when the children are grown. Owning a home is a way to build wealth. Owning a home free and clear and not having to pay a mortgage or rent is priceless.
Home ownership was the right choice for my family. There is more to the buy and rent decision than money and it isn’t just about using a calculator to see which option costs more each month.
In the long term renting will cost more than owning. In the short term buying a house is more expensive. There are closing costs and the monthly costs are more than just the mortgage.