Is it Better to Rent or Purchase a Home?
Other People Are Reading
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Buying Can Be a Good Investment
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People who buy a house are investing in their future. The payments they make build up equity in the house. The house may increase in value over the years. Tax breaks are also available for homeowners. Many people look forward to the day when they have finished paying off their mortgage and own their house free and clear.
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Renting Is Often More Affordable
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Individuals who rent their living space do not need to worry about the myriad expenses associated with home ownership, including property taxes, maintenance and insurance. Initially, rental payments are often less expensive than mortgage payments. Renters will not have to have a significant amount of savings to cover a down payment and closing costs on a house. The cost of maintaining a rental home or apartment is carried by the owner, freeing renters from unpleasant financial surprises related to home maintenance.
Bottom Line
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People are better off buying a house if they can afford to do so, recommends financial adviser Suze Orman. The house is likely to rise in value over the years, making it a wise investment. Many people will also benefit emotionally from home ownership, as owning a home is still the American dream.
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- Photo Credit house image by Cora Reed from Fotolia.com
