I always hear from people, “You should get married, have kids, and buy a house”, or “A house is the best investment you’ll ever make”, or “Why are you renting? You’re only throwing money down the drain. It is always better to buy a house.” Is it?… Is it always better to buy a house than to rent?
The answer is simply, not always.
There are many factors that should be taken into consideration before buying a house and peer pressure is not one of them. Owning a home can be emotionally gratifying, but that does not mean that it always makes financial sense.
There are many pros and cons of buying vs. renting including flexibility, job security, down payments, utilities, freedom, control, maintenance, tax benefits, etc., but we’re only going to concentrate on the financial aspect of it. Does it make financial sense to buy or rent?