To rent or to buy? This is a huge question that tons of adults face when they are deciding how to take the next big step in their lives. Deciding whether to keep renting or to buy a property can be stressful and scary.
According to Robert Shiller, a Yale University professor in economics, home prices, adjusted for inflation, from 1890 to 1990 only increased by less than one percent each year.
While many are under the impression that buying a house is what needs to come next on their journey through adulthood, this isn’t necessarily the case. Financially, it is not a bad idea to rent.
While you are not reaping the benefits of a mortgage interest tax deduction if you are renting property, you are eliminating homeowner’s insurance, maintenance, sometimes homeowner association fees, and paying interest.
When making these types of decisions it is important to do what is right for you. Make sure to find your right fit!