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I come with dick and 1/2 the rent shirt
But the I come with dick and 1/2 the rent shirt. Recall that while Tommy’s initial rent payment would be lower, after 4 years, her housing costs would be lower. At that point, if Tommy was owning, she could take the payments that would have gone to rent and invested them. There are opportunity costs on the front end when buying a home. But later on, your higher inflation-adjusted rent payment carries the opportunity costs. As you can see, from a financial perspective, the decision to rent or own isn’t as simple as it first seems. In general, over longer periods it’s better to own than to rent.
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If you plan on staying in a single place for the I come with dick and 1/2 the rent shirt, it’s better to finance a home. If you enjoy living in new places every couple of years, then it’s best to continue renting as you won’t have enough time to experience the financial benefits of home-ownership. Renting allows for more flexibility to move locations quickly. Something to consider is your career and whether it will require you to relocate frequently. Especially if you are just starting out, there may be a higher chance that you may need to move. Figuring out how long you will be in a location is a key factor in making the decision to purchase a home.
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