Why should I buy instead of rent? Who really stays in a house for 30+ years?

Answer

As long as you want to stay put for at least 5 years, it might make better sense for you to buy instead of rent. Having a 30-year mortgage doesn’t mean you need to stay in the house for 30 years to make it worthwhile. Buying a home could save you a lot of money.

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You get equity

Each year your lease is up, the landlord or management company could raise the rent. If you buy a house with a fixed mortgage, you pay the same year after year. Although at first, your mortgage payments go mostly to interest, as time passes, more and more of your mortgage payments go to the house, which gains you equity.

5 reasons why renting is good

Tip

If you have enough saved for a down payment of 20% and get a 30-year fixed mortgage at a low rate, owning a home is nearly always cheaper than renting. Then if you want to sell in 7-10 years, you should be ahead of the game financially, especially if the house appreciates.

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