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Chief
Why would I want to change your mind? There are pros and cons to each. If renting suits your lifestyle now and in the future, have at it.
As someone who aspires to be landlord, I will not change your mind. In fact encourage you to spread your thoughts as much as you can so I have a good pool of customers in future.
Chief
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Millennials do not want to make the effort to get on the ladder and move to better homes every 3 or 4 years. They want it now.
Change my mind
Rent your life then!
Pro
Home ownership has risks for sure. I bought during the peak in 2016 and my house still isn’t worth today what I paid back then (suburb of Chicago) but I’ve been paying on the mortgage so I owe less than it’s worth now at least. I learned a lot from the process and won’t buy one of the most expensive houses in an area because those are hit the hardest. However I feel like rent is close to the same amount as a mortgage payment in most places so why wouldn’t you buy? Unless you can get very cheap rent, buying is the better move even in bad circumstances like my own where I’ve built equity despite a 30% reduction in value.
Pro
Areas of Plainfield, IL
I don’t want to ask anyone if I can stay at their place, even if I’m paying for it (I.e. rent). This is why I own my own home.
Leverage works well with declining interest rates. We may be bottoming out here, which makes a rent decision smart. Maybe not.
Additionally, if you like optionality re where you live, rent.
I have both written a check to sell a home and been paid 5x my down payment to sell a home. FWIW, the latter feels better but both are possible.
Have a home and rental property now and am thinking about a lake house. I don’t like the leverage but leverage can make you wealthier than your ordinarily be. And it pays for a lot of memories and stability.
YMMV.
When you rent you’re throwing away money with nothing (no equity) to show for it.
Depends on your mobility needs. If you want to move several times a decade then rent - buying and selling houses is an expensive hobby that supports the realtor and mortgage industry. Similarly it depends on your liquidity needs - if you don’t want funds tied up in real estate then rent - “home equity” loans are another industry that home owners support.
I bought a one bedroom apartment in Brooklyn in 2011 for $485k and sold it in 2014 for $795k. Good luck getting returns like that anywhere else.
Pro
In that case, spot on! Could not agree more. And congrats on the $310k win. That’s a game changing amount of capital. Hope you qualified for Section 121 or did an LKE!
Go to NYtimes buy vs rent calculator. There are some factors that make it a better business case to buy (e.g., living at that place for a long time)
Rental owners raise their prices whenever they want. I hated that part of it (sorry, but rent will be $100 more starting next year). Not because their expenses went up, but because property values increased and they want more now for their property.
I bought in 2010 and am now more than double the value.
It depends greatly on the location of the real estate. No demand = no capital growth
So wise