Join us this week as we discuss the true cost comparison of renting versus buying and why equity isn't the magic bullet that makes renting a better decision 100% of the time. The truth of the matter is that buying wins out when you're going to stay in an area for a long time or if you are in an area where your mortgage would be significantly less than your rent. This episode is meant to help break common myths that renting is just throwing your money away by realizing buying can be just an expensive. If you're only in an area for a few years you'll grow your stache much faster by renting!
I included an infographic that helps break down how much it costs to rent for so many years versus how much it costs to buy. Note that this doesn't include appreciation which will allow you to sell your home for more than you bought it (unless we're in another housing bubble!) BUT it also doesn't include expenses and maintenance on your home so I figured for the purpose of keeping it simple it was a good illustration. Feel free to debate me in the comment section if you wish, I'll keep my calculator handy :)
Now I mention all of this and I still don't discourage everyone from buying! If you are in an area where you can get a 15-year mortgage for the same price as your rent you will build equity much faster! Or if you plan on being somewhere for 5+ years and want the freedom of home ownership GO FOR IT! Or maybe you've worked hard and simply want to be a homeowner - nobody is stopping you from indulging here! But if you are feeling pressured to buy a home from friends/family use these facts to fight your case and enjoy the free and easy life that comes with renting, guilt-free!
