Renting Can Be Better than Buying
Owning a home and investing in real estate is usually a good long-term investment, and does offer some amount of tax advantages, too. But for some people, renting might make better sense especially for young families. If you are able to pay low rent by living in a smaller apartment or house, or if you live in a rent-controlled building, your rent payments could be significantly lower than the payment required if you purchase a home. In general terms, if you can save and invest 10% or more of your earnings each year, those investments could easily out-perform real estate investments.
Plus, you won’t incur maintenance expenses, and can much more easily move to another residence or another city as a renter. And you won’t have significant sums tied up in your house, which could make it easier for you to tap into your assets.
In short, while home ownership is typically considered a key component of the American Dream, every family’s dream is unique.