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Your financial and life goals will tell you which direction to go
Renting
This concept of renting makes a lot of sense for many people, and it’s nothing to be ashamed of. It’s not uncool not to own a house anymore, and for many people, its a wise decision financially.
Renting is cheap – especially when you don’t require a lot of square footage.
Move to the south and midwest, and you’ll probably be paying rental prices that make people who live on the west coast and northeast coast balk.
Benefits of Renting
No landscaping or yard upkeep
No maintenance fees
Little commitment
No property taxes
No HOAs
You don’t have to rent an apartment all your life either; you can rent a whole house long-term, have more financial freedom, and avoid the burden of maintaining your home.
Buying
The American dream is to own a home and have a piece of property in your name – eventually, after it’s paid off in 30 years. But many people aren’t prepared for the financial burden that comes with buying a house, which often includes:
Hefty down payments to avoid PMI (usually 20%)
Maintenance and upkeep costs
Homeowners Insurance
Property taxes
Security fees
HOAs
And there are other hidden and surprising costs that come along with it.
The Big Question
After 10, 20, 30, 40, or 50+ years of renting, you probably could have bought a couple of houses.
The question is, do you want to give away your money to people who own property? Or do you want to take on more financial responsibility and own property?
Many people who rent long-term are exceptionally well off because they have low expenses and prioritize investing.
There are a lot many people who buy, maintain a low expenses ratio, invest, and can pass down property to someone else.
Whatever you decide to do depends entirely on your goals. Don’t avoid buying a home out of fear, though. If you want to buy a home, figure out how to position yourself to do so easily financially. On the other hand, if you don’t want to buy a home, don’t be persuaded into feeling guilty or buying one because it’s the norm. Think for yourself and make the best decisions for your present self and your future self.
$13,760 a Month For a Mortgage, But ‘Only’ $6,400 a Month For Rent
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.