this post was submitted on 02 Nov 2023
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Repeat after me: it's okay to rent. Equity is not everything.
The downvotes are really depressing. My point is that we've been conditioned in America to focus solely on homeownership. The banks, title companies, realtors, and home contractors tout it as the American dream. No matter the personal cost--the down payment, the interest, the insurance, the maintenance--and no matter what negative externalities--sprawl, inefficient heating and cooling, increased infrastructure, car pollution, divorce and obesity from commuting--you must buy a house.
I get it. If your overriding concern in life is to maximize investment, then by all means pour your cash into a house.
PS. I agree. Although generally people aren't renting unless they are making a profit off of it. So if you have the ability to and it's not a 100% awful time to buy, buying may save you that profit. But there a huge benefits to renting. And to owning. And huge drawbacks for both.
Generally, rents should be about equal to cost of owning... Because if one was much cheaper or much more expensive everyone would pick the other.
Another point here- if renting is cheaper and you invest the difference you're still building your equity in a potentially far more diversified safe way.
(Although I want to buy simply because a mortgage is a more predictable cost than rent!)