Renting isn't 'good' though in many metrics. Ownership is, and that's what the push should be for, rather than promoting basically a monthly subscription to have a roof over your head.
It's not that simple. Owning a home is not just a better version of renting. It's a whole different thing with pros and cons.
Your mortgage is the lowest amount you'll pay. On top of that you have to manage the upkeep of the house, which costs both time and money. Lots of people go through phases in their lives where they move around and owning just doesn't make sense for a few 1 to 2 year stretches.
On the other hand, rent is the highest amount you'll pay. You generally don't have to worry about upkeep, and you're free to move. The commitment is lower and that has real value for certain people at certain stages of their lives.
I rented for 6 years in different areas until I figured out what I liked, and then I bought a house. Those 6 years weren't just wasted years. Those were very valuable years where renting really made the most sense.
> Your mortgage is the lowest amount you'll pay.
> rent is the highest amount you'll pay.
I don't like these 2 statements because they are only true at a starting point. If someone gets a mortgage today for $2k/month, 10 years from now it'll still be $2k/month, or even less if rates drop and they refinance. Rents OTOH will continue to rise with inflation. I had a $2k/month mortgage at my last house and the house next door rented for $4500/month.
Yes and no to both parts. Mortgages often come with things like property taxes and insurance, both which go up over time, and often by significant amounts. These things also apply to rents, but are wrapped in. In many areas rents will rise far above inflation rates. It would in theory be impossible to have a mortgage that is more than rent for the same property unless the landlord is making 0 money.
> On top of that you have to manage the upkeep of the house, which costs both time and money.
Well guess who has to pay for that in a house that is rented? It's the renter!
Just the same as when you rent a car, the cost for maintenance is included in your rental fee.
You're just as free to move if you own a house: Just sell it, or rent it out. Any inconvenience from doing that is easily worth the money you save by not giving it away in paying rent.
> Well guess who has to pay for that in a house that is rented? It's the renter!
On average, over time, in a free market, yes. But not necessarily in any specific case. The rent is a cap during the lease period, no matter what the landlord has to pay for maintenance.
If you live there for 30 years - and don't cash-out-refinance - in 30 years your subscription costs go much lower.
However if you rent for less than the mortgage you can invest the difference into something that will grow in value more than the house (which SHOULD track inflation) and in turn end up about the same in the end.
In what world is rent lower than mortgage? Part of the reason my fiancé and I bought a house is because it was cheaper than renting. Not just long-term, but our monthly payment is actually noticeably lower.
Of course, we did need to pay a down payment. But if you amortize that over a 30 year mortgage period, we’re still better off buying than renting.
Zero. Like in zero places would rent be less than a mortgage unless somehow the landlord was making 0, and then at that it would be the same price as a mortgage but without the risk of being locked in for 30 years.
Your mortgage is the lowest amount you'll pay. On top of that you have to manage the upkeep of the house, which costs both time and money. Lots of people go through phases in their lives where they move around and owning just doesn't make sense for a few 1 to 2 year stretches.
On the other hand, rent is the highest amount you'll pay. You generally don't have to worry about upkeep, and you're free to move. The commitment is lower and that has real value for certain people at certain stages of their lives.
I rented for 6 years in different areas until I figured out what I liked, and then I bought a house. Those 6 years weren't just wasted years. Those were very valuable years where renting really made the most sense.