I’ve seen a recent finance bro fad saying renting and investing is better than owning. My brother in Christ my rent was much higher than my mortgage for a shittier spot and I didn’t get equity.
During the last housing bubble, you could rent the same place for less than 1/2 the cost of buying it. Renting and investing made more sense then.
Currently buying a house is overpriced but rent is even more so.
The best financial decision right now is to live with your parents your entire life. If you don’t have a parent you can stay with, then a tent and cardboard boxes in the park it is.
I just did the math for renting/investing vs buying, including rent/house value yearly increase, income taxes on capital gains, mortgage rate, down payment amount, and initial house price. The results indicate a strong dependence on rent price and taxes/insurance for buying. I found that renting/investing can be a better financial option depending on the inputs. As another commenter pointed out, the main reasons are taxes/insurance and the greater time return rate for market vs home value. This was surprising to me, so I’m glad I ran the numbers. That tells me the real difference is your life choice of wanting a place of your own vs renting and moving around.
I should’ve known better than to trust my intuition on this. I previously ran the numbers on investing vs double mortgage payments and found investing to be far superior.
I’ve seen a recent finance bro fad saying renting and investing is better than owning. My brother in Christ my rent was much higher than my mortgage for a shittier spot and I didn’t get equity.
During the last housing bubble, you could rent the same place for less than 1/2 the cost of buying it. Renting and investing made more sense then.
Currently buying a house is overpriced but rent is even more so.
The best financial decision right now is to live with your parents your entire life. If you don’t have a parent you can stay with, then a tent and cardboard boxes in the park it is.
I just did the math for renting/investing vs buying, including rent/house value yearly increase, income taxes on capital gains, mortgage rate, down payment amount, and initial house price. The results indicate a strong dependence on rent price and taxes/insurance for buying. I found that renting/investing can be a better financial option depending on the inputs. As another commenter pointed out, the main reasons are taxes/insurance and the greater time return rate for market vs home value. This was surprising to me, so I’m glad I ran the numbers. That tells me the real difference is your life choice of wanting a place of your own vs renting and moving around.
I should’ve known better than to trust my intuition on this. I previously ran the numbers on investing vs double mortgage payments and found investing to be far superior.
It depends, it can definitely be more worthwhile to rent.