Freakzilla wrote:A Thing of Eternity wrote:Freakzilla wrote:Renting is throwing money away. Owning a home is the first step in accumulating any kind of real wealth, besides just saving cash.
Actually, there are situations where depending on the value of the land vs the house and the interest rates that you actually can save more money renting than buying. That said, 99 times out of 100 you're correct.
You may be making a lower payment but none of that is going toward equity in the property.
So you actually are making money paying the more expensive house payments since you will one day own it.
That's not quite what I'm talking about, but I don't have enough knowledge to explain myself properly - this is something my dad's explained to me once or twice. There are situations where the money you're putting towards your house will be totally lost and you can make way more money by not buying the property, it's not about the money saved in monthly payments but I don't know how to state it properly. If I have it explained to me again soon I'll come back and post it! Typically though I agree with you.