There is a common perception that renting is just “throwing money away,” but many people don't understand the true costs of owning a home. The total cost of renting is obvious: it’s the rent. Homeownership costs include property taxes, maintenance costs, depreciation, and the cost of capital. The cost of capital includes both mortgage interest costs, and the opportunity cost of not investing home equity in some other asset. All considered, in many cases, renting costs less than owning a similar dwelling.
Renting is often a better deal than buying. That’s because of how expensive it is to own a home
There are many worthwhile considerations in the rent-vs.-own decision, but a fundamental starting point is understanding how much you will be spending on housing
Discussion