Should I Buy or Rent?
- Monday, June 17, 2013
Equity is the Key
I won’t bombard you with any more numbers, but I think it’s obvious that owning a home instead of renting is better in the long run because you’re building equity as long as you own the home, and you set yourself up for a financial future that can be much easier to cope with in your old age because you own an asset that’s still appreciating, instead of owing monthly rent payments that will only continue to rise.
If you ever get to a point where you can no longer maintain your home or live alone, you have an asset that you can sell that will provide for you in those later years when lower income and high health care expenses can take a toll. A renter doesn’t have this option.
To conclude, it’s obvious that the housing market has been terrible over the last few years, and a few uninformed people may try to convince you to be a perpetual renter because homeownership is too “risky.” But when it comes down to it, long term homeownership is far less risky than renting ever will be.
Article originally published on Celebrating Financial Freedom. Used with permission.
Dr. Jason Cabler is a Christian personal finance blogger, author, and speaker. He teaches how to get out of debt and live a debt free lifestyle through his Celebrating Financial Freedom blog and self study course. His book How to Budget: The Quick and Easy Guide to Making a Budget That Works is now available (more info here). He can be reached for interviews or speaking engagements by email, and can be found on Twitter, Facebook, and Google +.
Publication date: June 17, 2013
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