Renting vs. Owning: Which is Better?

I'll start this off by saying - don't ever feel guilty about renting.

It's easy to see friends on Instagram post pictures on their front porch with a brand new set of keys, ready to make their new house a home.

I get it. Society tells us that we need to buy a house after we graduate, settle down, do some renovations, and live our life in an owned home.

But for some of us, this just isn't a reality.

Especially if you have 1099 income, it can take a couple years of consistent income to even be considered for a home loan.

Homes can be a great purchase if you can afford it and know you want to stay in an area for awhile, but if you're young and don't where you want to settle down yet, renting can be a wise choice. If you just moved to a new city, it's typically better to rent and experience the city and figure out what neighborhoods you like before committing to a home.

I've had several people tell me their parent's keep preaching to them that they're wasting their money on rent and it's just not true. Even with low interest rates right now, the housing market is so hot that you may end up overpaying for a home and now that low interest rate doesn't mean much.

But regarding the question which is better, there's no one-size-fits-all answer.

If someone tells you that owning a home is better, they're probably a real estate agent or speaking from their own experience. Which is great, but it's important to take into consideration your wants and needs, not anyone else's.

Essay #53 - 5.18.21

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