Profile picture for MitchCrawford

Is renting cheaper than owning?

My itemized tax deductions are 12k. My standard deduction would be 6k withou a mortgage. I could rent for 1/2 the amount of my mortgage. To me it makes more financial sense to rent and invest the other 50%. Any advice is greatly appreciated.
  • October 13 2013 - Columbus
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Answers (5)

The simple answer is if you have the down payment, buy! Rent has become so expensive that you are better off creating equity. As an agent and a tenant my girlfriend and I will be buying shortly. 
  • October 13 2013
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Profile picture for MountJuliet
Real estate is best as a long term hold investment.  Buying and selling eats equity.  Renting is better for the short term in many cases.


  • October 13 2013
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Profile picture for MitchCrawford
I currently have 9 years remaining on my mortgage, a 127k balance at 2.75%. I plan to stay in Columbus for 10 years and possibly 15. Do these factors steer me on renting v continuing to own. Also, I could rent for what I pay in taxes, insurance and interest and would not have the upkeep expense.
  • October 13 2013
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Profile picture for MountJuliet
Please do not buy a house for tax deductions.  The National Association of Realtors continues to fight for the Mortgage Interest Deduction (MID) to remain in the current tax code.  Having a deduction is a current tax benefit that I hope remains for many years.

Having experienced the past few years, many folks do not want to purchase real estate again because they were burned.  I say evaluate your specific situation and if it fits, buy a home.

Buying isn't for everyone...it was for me even after having a rough few years that caused me to move from my home of 10 years and rent for a few years before buying again in June of this year.

Rent for 1/2 the cost is a valid option especially if you consider selling expenses if you anticipate a move in the short term.

Best,

Bob Sorey



  • October 13 2013
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Profile picture for wetdawgs
The NY times has an excellent calculator to address the question. 

Also think of the time frame.  Are you going to be in that home for 50 years or are you going to be moving in 5 years?

  • October 13 2013
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