Buying vs. Renting

Ok....So the market is crazy...we all know that. But with that said, is buying still better than renting? Here's my thoughts...take it or leave it. I'm speaking from a Realtor's perspective, a homeowner perspective, and as a recent renter. I also asked some of my lender friends to help me understand the background financially.

So my first answer when someone asks is buying still a good idea in this market, if I'm a renter. Well my answer is always YES. Your interest rate on rent is 100%, you are paying towards someone else's investment...why not work towards building your own wealth. But the market is so crazy...also YES. But as you may have noticed the rental market is also crazy. I rented a 3 bedroom, 2 bath for $1600 2 years ago, now I hear that rental is going for $1900-$2000. $2,000 for a Rental....yes it's true. Because that is the market. So would you rather pay someone $2,000 for no equity or have a Home you can call your own???? Ok, on the more financial side...does it make sense to buy vs. rent? #1. Rent will go up over time, and the tenant has no control over how much or when. So will the cost of real estate. But by owning you are paying into an investment whose value is going up, even if taxes are also going up. #2. You build generational wealth with real estate. For example, if you’d purchased a home 5 years ago you could sell it now and use the proceeds to put down on a new home, keeping the payment affordable by borrowing less than the purchase price. As you get older, the equity and value you have in real estate goes up. When you pass away, that asset is passed on to your estate and for the next generation. #3. Let's say you buy a property for $400,000, with a 5% down payment; with today’s rate that puts the mortgage payment around $2400 which includes taxes and insurance. $400,000 should buy you a 3 bed/2bath home...what are you paying in rent???

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