Rent vs. buy. In finance circles, it’s a bigger debate than “paper vs. plastic” or “tastes great vs. less filling.”
It remains a debate fought by smart people on both sides, because the variables make calculus look like third-grade math.
Advocates of buying will use arguments that feature phrases such as “throwing away money on rent,” “mortgage interest rate deduction,” and “forced savings.” They may even appeal to your sense of community by pointing out the social benefits of an ownership mentality.
Advocates of renting will say the benefits of homeownership are overrated while the costs are underrated. A popular argument against owning housing is that home prices barely keep up with inflation. Buyers also pay closing costs, real estate agent fees, homeowners insurance premiums, property taxes, and sometimes refinancing costs. Then there are the “investments,” which are often better classified as “cool stuff I want,” or maintenance costs – neither of which meaningfully increase the value of the house.