Two weeks ago we told you about a couple of reasons it’s not necessarily super-awesome to own your own house. Well, now here’s the flip side of the coin. Renting has plenty of financial drawbacks too.
Over at Real Estate Reality Check, they go into how like with buying a house, not buying a house also has an opportunity cost. By not owning, you’re not building up equity. After you reach a certain income, you also end up paying higher taxes because you can’t deduct your property taxes and mortgage interest. Then there’s storage rental fees a lot of people have to end up paying, you lose out the cash on any upgrades you make and the high likelihood that you will get back less of your security deposit than you deserve.
There’s pros and cons on both sides of renting v. owning. Your individual situation will determine what’s the best move for you to make.
10 Hidden costs of owning AND renting a home [Real Estate Reality Check] (Thanks to c-side!)