“Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.” – Keeping Current Matters
Keeping Current Matters posted an excellent article today entitled “Either Way, You’re Still Paying a Mortgage”, which I highly recommend reading if you’re debating on whether to rent or buy. One reason a lot of people choose to rent is because they’re uncomfortable with the idea of being ‘trapped’ in a long-term mortgage. They feel like renting gives them financial freedom, but what they don’t realize is that they’re still paying a mortgage…it’s just their landlord’s mortgage. So instead of being able to own property and build equity, they spend money paying for someone else’s home and having nothing to show for it at the end of their lease.
Mortgages can also have fixed rates, ensuring that the price won’t raise every year. If you’re a renter, you’re almost guaranteed to have a rent hike every year.
Renting might still be a good option if you’re not sure if you’ll be in your area long-term or if you do the math and it’s cheaper, but it’s important to do that math. Don’t assume that it’s cheaper to rent, because you could be missing out on an opportunity to own property, save money, and build equity for the future.