Buying a home is expensive. You’ve got to have money for the down payment, closing costs, mortgage payment, and other ongoing expenses such as utilities, taxes and insurance. If owning a home is so expensive, shouldn’t you just keep on renting?
Well, even with all these expenses, there are good reasons to buy vs keeping on renting. 217,000 good reasons. This article on REALTOR.com gives you more of the background and the details on how buying a home can net you a $217,000 benefit over renting in the long run.
The reason for this is clear: every year that you rent, you are contributing to your landlord’s equity in their property. If you buy a home, you are contributing towards your equity! They estimate that each year you delay, it’ll cost you $19,000.
Why is this an issue right now? Because we are at an intersection of critical factors: rent is increasing at an all-time high rate right now, and mortgage rates are expected to rise any day now. So putting off buying a home can cost you $19,000 in long term equity.
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