Come January, you may very well begin the rent vs. own debate. Take comfort in knowing that you’re not alone. At some point, every homeowner and prospective homeowner has sat down and calculated the merits of renting against the merits of buying.
Buying a home is a big decision that takes thought and often requires help.
So how to you determine at what point paying rent doesn’t make as much sense as buying a home and building up equity?
Well unfortunately, it’s not as simple as how much rent is vs. how much a mortgage payment would be. Things like taxes, closing costs, how long you plan to own your home, insurance, unexpected expenses, etc. all play a role in making a wise decision.
The good news is that help exists.
The New York Times Rent vs. Own calculator takes all the important factors into account and allows you to come up with a figure above which it makes more sense to buy a home.
Plan for the future, save for a down payment, and think about your dream home, but do it strategically.