Tiffany B. Brown

a mish-mosh of stuff

On homeownership, 2

But it’s worth remembering that the advantages of homeownership are frequently exaggerated. The mortgage-interest tax deduction doesn’t eliminate the cost of borrowing money; it merely reduces it. The freedom to paint your house any color you wish comes with the responsibility of paying for a new roof when the time comes. The $15,000 or $30,000 or $50,000 that real estate agents’ fees add to the price of a house can wipe out a lot of other savings.

That’s David Leonhardt in In Sour Home Market, Buying Often Now Beats Renting from the New York Times

If you plan to stay somewhere for less than 10 years, renting is often the better deal if only for the convenience factor. You can get out of a lease much more easily and with far less impact on your credit score — potentially none — than you can get out of a mortgage.

There is no shame in renting. And there are some very good reasons to rent instead of own. I only wish I had listened to my own advice three years ago.

Also see: Things to consider before buying a home

  • http://swirlspice.com/ Erica M

    Keep banging this drum, Tiffany. I'm pretty sure I do not want to buy another house when we move out of this one, especially if the only reason to buy is to somehow potentially in the longer term not lose the money we're sure to lose if we cash out on this house now.

    But every time I mention it many folks (parents included) disagree and not-so-silently judge that decision. Plus there's the part where I've really become accustomed to a two-car garage and in-house washer/dryer. A rental including both those items is really hard to come by, but it's certainly not a compelling enough reason to buy a house instaed.

  • tiffanybbrown

    Agreed. Homeownership is expensive and for most people, it's not a particularly good investment. Housing, as with everything, has an opportunity cost and it's far riskier than people think.