[Edit] 
Renting vs. Buying
- Is renting cheaper? No. Given the same house it will almost always be cheaper to own than to rent. Here is why: Somebody owns that house. And there is probably a mortgage on it. Let's say the mortgage payment is $500. If I owned it and rented it to you I would not charge your $500. I would charge you $650 or $700 because I would own it to make a profit. Not to mention the fact that a home owner is always getting equity while a renter is not. On the flipside as a renter you do not have to worry about repair, taxes, insurance, etc.
- Don't forget the tax advantages to owning the home! Depending upon where you live, there may be programs to encourage home ownership or to assist low-income and first-time buyers. In our town we have an infomercial on TV every Wednesday night in which two realtors review "available properties for no money down and monthly payments less than you'd pay for rent!" I recommend a book called "Live Debt Free," about buying a small property when you're young, making double payments so you own it outright in 15 years, then selling it for an appreciated amount which you use as a downpayment to buy the home of your dreams in your middle age. That comparatively large downpayment means you'll have lower monthly payments, which might mean one spouse can stay home with the kids or more income would be available for travel or high living. It's the kind of book you have to give as a graduation present, 'cause by the time you're my age it's too late! LOL
- Use the Ginniemae.gov calculator to compare the advantages and considerations of owning vs. renting a home.
First answer by Patrick. Last edit by anonymous. Question popularity: 139 [recommend question]
