Good Financial Reads: Renting vs Buying a House

I bet you $100 that you’ve been trained to think that renting is throwing away money. Why pay rent when you could take out a mortgage with monthly payments equal to your rent and build equity in your home? Historically, buying a home is the thing to do – everyone has one and it is often viewed as a pillar of success. Oh - that person bought a home? They must have their s*** together.

Thinking about becoming a homeowner? Buying a home is a major financial decision. It is one that evokes many positive emotions, such as security, the transition to adulthood, and the pride of ownership. On the negative side, a recent survey reported that buying a home ranks as one of the most stressful financial events. For new families, a home and its corresponding mortgage will likely be the largest asset and liability on your balance sheet.

You’ve heard renting is throwing money away and a house is always a good investment. But is it true?

The answer is it depends — and today, we’re giving you what you need to get to a solid recommendation on what’s best for your personal situation.

The “renting vs buying a house” debate is one almost everyone has, and there’s no one, easy answer because, no, buying is not always better than buying.