Is Renting just throwing money away?
There could be many reasons to consider buying over renting a home. Building on assets beyond the stock market, building equity, or having a hard time renting because you own pets.
If you’re planning on building equity,
this may take a while because most mortgages are structured with payments leaning more towards the interest than principal. Plan on being in the home for a few years to take advantage of the equity or down the road when you actually sell it on hopefully an upward market.
Money Down the Drain as a Homeowner,
with interest, insurance, HOAs, and the dreaded ongoing maintenance costs - is this the best investment? After calculating the equity they have accumulated, homeowners forget to include the maintenance costs such as roofs, gutters, windows, carpets, etc. As a renter, your costs are fixed, but as a homeowner, every repair is up to you.
So, should I rent rather than buy?
If you are planning on living in the same home for at least five years, buying the home will be beneficial in both financial and personal goals.
Personal side of things, you could customize your living arrangements and save from moving every other year.
On the financial side, property taxes paid reduce your taxes if you itemize on your federal tax return.
It all comes down to your future plans, time, and your financial situation when it comes to buying or renting a home. With all these points to consider, you will make the right decision.