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> The best rule of thumb is buying or renting will turn out about the same in the long run if you invest the difference saved by renting. Owning a home, I'm in
by jjav 3y ago
> The best rule of thumb is buying or renting will turn out about the same in the long run if you invest the difference saved by renting.
Owning a home, I'm investing the difference I save by not having to rent. Difficult to see how a renter can come ahead unless the time horizon is just a couple years.
Rents only ever (mostly) go up. Mortgages only go down (refinances). Those lines can cross in just a few years into ownership. By now, renting the same house I own is about 4x more expensive.
One thing you really don't want when going into retirement is a constantly and unpredictably increasing housing cost when you'll be on a fixed income.
- bluGill 3y agoThere is more than just house payments. There is also taxes and insurance, both of which go up over time (they are often rolled into the mortgage payment, but they are not the same thing). There are also maintenance costs which can be quite high (if you do it yourself they can be lower, but not everyone has the time or ability). Also most people are buying a much larger place than they would rent. These need to be factored in and they make the point where the line crosses farther out.