The rent vs. buy calculator was traditionally used by realtors and mortgage lenders as a way to show you the benefits of homeownership. These include building equity, getting a tax write-off and appreciation of the property.
These numbers always skew in favor of purchasing a home instead of renting, which is what they want you to do anyway. Buying a home and paying it off in 30 years does make sense financially, but who really does that anymore?
To make an intelligent decision in times like these, you have to go outside the numbers.
Will I live in the property for 30 years?
What is the total cost of ownership of the property?
What if I get transferred or move?
What if I can’t find a tenant or a tenant doesn’t pay?
What if I lose my job?
What if the property doesn’t appreciate for the next 15 years?
What repairs/renovations will I have to do?
What if my taxes, insurance and homeowners’ dues increase?
Ask yourself a few of these questions and see if renting might be the right choice for you, right now. Make an informed decision and consult with professionals.