Rent vs Buy Debate

Around here, monthly rent is as high as or higher than mortgage payments. With mortgage payments, you accrue ownership (for the "standard" mortgages around here). If you expect house prices to remain stable or increase during your residency in a property, ownership financially makes more sense.

I guess it depends somewhat on where you live and what interest rates are doing when you buy. Where I live (and true of virtually everywhere else I've lived over the last 20+ years), monthly rent significantly exceeds what the monthly mortgage repayment would be for the property if bought. Rental prices also seem to increase in lock step with or even above house price increases. So as the underlying asset appreciates (benefitting the landlord), rental prices also go up, further compounding

It's important to realise that you can't compare your rent with your mortgage payments without factoring in a lot of things. The rent you pay includes things like taxes, insurances, upkeep, depreciation, risk and opportunity costs that your landlord has to pay while still coming out ahead. And he has to deal with all the administrative things too. So if you're a homeowner yourself, ask whether you're still coming out ahead carrying those costs yourself, plus the risk that som

I completly disagree.When you are owning a house or apartment - each payment of mortgage builds your own equity. This is not the case with renting, plus when you actually own it and have to move - you can also rent it.Also, rent over here costs almost as much as mortgage(or in some cases - even more) - the only issue is the down payment - so the investment bit is very off.

Sure, your equity grows over time, but lets say you buy a house and live in it for 5 years. Add in the relator fees, title taxes, maintenance, property taxes and interest paid on the mortgage.Now compare that with renting. In some situations you might be better off, but that usually requires appreciation in the value of your home. Often renting leaves you with more money in your pocket than buying does.

The OP is talking about a situation where it would be cheaper to rent your home in the future, than make mortgage payments on it.

You shouldn't just consider the difference between your rent and mortgage. Mortgage eventually ends. Rent doesn't.

There are so many factors to take into account. When you buy, you buy generally bigger than what you would rent because you buy for the future, you rent for the present. Bigger houser means also more maintenance costs and more taxes. Inflation does not always work: the value of a house getting older and outdated may decrease. The environment may degrade. OTOH, when renting, it is psychologically harder to spare. With a mortgage, you have no choice.

Despite the interest, insurance, taxes, and maintenance when paying a mortgage the majority or at least a big part of your payment goes to pay off the house - so after 15 or 20 or 30 years you own a very expensive house. When renting all the money you pay goes down the drain and in 30 years you own nothing.

I hear this sentiment frequently but it doesn't pencil out. Renting an equivalent unit will typically, month-to-month, be cheaper than buying. Of course a significant portion of the monthly mortgage payment goes to principal which increases your net worth, but there are many cases where the money you save monthly by renting will actually exceed the principal you accumulate from your mortgage payment. In fact, there are plenty of helpful calculators to help you figure out what makes the most