Perhaps you are pondering the age-old personal finance question: should I rent my next home or apartment, or should I buy (mortgage) the thing instead?
Rent vs. buy and rent vs. mortgage... what are the major pros and cons here to consider?
Personally, I prefer renting. The real estate bubble has proven, at least in my mind, that real estate is not as "sound" and "no-brainer" an investment as real estate agents and developers would have you believe.
You can lose money with real estate, just as with nearly any other form of investment with decent upside potential.
Some personal finance gurus consider paying a mortgage like saving money, and in that sense, it is good since you're building up equity over time -- whereas with rent, you don't own any more of your apartment a year from now than you do today.
Unfortunately, it's more complex: buying/mortgaging a home or apartment often involves large property taxes and other fees. I recommend this handy rent vs. buy calculator on YoungMoney to see which option makes the most sense for you. Fill out all of the fields to get the most accurate assessment... for some people renting is a better financial choice, for others buying makes a bit more sense. There is no one-size-fits-all answer.
The other reason I personally PREFER renting (and do rent at the moment) is that I am only locked in for one year at a time (I typically sign a 12 month lease)... which means if I take a better job in another city, or decide to take time off and travel extensively (as I would like to, sooner rather than later) I won't have the hassle of hustling to sell off an apartment in a bad market. And I won't be paying a mortgage on an apartment I don't use often.
That's my take on the rent vs. buy argument. What's yours?
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