It’s better to rent than to buy in today’s housing market.
Fast-rising home prices and higher mortgage rates have made it cheaper to rent a home than buy and own one.
Renting and reinvesting the savings from renting, on average, will outperform owning and building home equity, in terms of wealth creation.
Why is renting better than owning?
No Real Estate Taxes
One of the major benefits of renting versus owning is that renters don’t have to pay property taxes. Although property tax calculations can be complex, they are determined based on the estimated property value of the house and the amount of land.
Is it better to buy or rent house?
It’s less expensive
Some financial experts will tell you it’s more expensive to rent than to buy, even after including maintenance, repairs and HOA fees. Others will insist that renting is the cheaper decision and only committed home buyers should consider getting a mortgage. The truth is somewhere in the middle.
Is renting really a waste of money?
Anyone can waste money by making bad spending decisions and relying too much on credit. But on its own, renting is actually a smart and flexible financial choice! Sure, people who rent more space than they need or who live in a hot part of town and pay ridiculously high rent are wasting their money.