Buying vs. renting is a personal choice and there are many factors to consider. 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.
Rents are high and sometimes they are higher than house payments but payments do not reflect the true cost of homeownership. A young professional may pay a steep price by staying put because of a house or from buying a house and then selling it a short time later. Owning a home is a commitment and by choosing ownership doors to other opportunities might close.
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 can be like a savings account as money and appreciation go in and then come out when we sell. Home equity can be borrowed along the way if needed.
Owning a home was the right choice for my family. Some would say that home equity is “dead equity” but to me it is a different kind of freedom. 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.
