One of the greatest cons of all time may be how so many with a vested interest, have successfully convinced consumers that they are better off renting. Freedom! Move whenever you want! Use your money for travel, fun!
Renting is cheaper than buying! Never once do they ever mention one little tidbit that I as a broker mention every single day:
Right now, homeowners are sitting on nearly $30 trillion of home equity, just shy of the peak in 2022. Renters, on the other hand, are sitting on ZERO trillion dollars worth of home equity. Repeat that. $30 TRILLION IN HOME EQUITY.
Yes, when you buy you lose the use of that down payment money. It's gone, right? Poooof! Wrong! That is equity. And every month as you pay down a mortgage, that too is building equity. Slowly, yes. And if a home were purely an investment, this may be a weak investment, but in reality over extended periods of time it adds up.
Is buying a home a better investment than buying APPLE stock for wealth creation? Probably not, depending on when you buy of course. Is a home a perfect investment? NO! It incurs expenses, dips and issues, not to mention other hassles. No investment, place or person is perfect.
BUT....the biggest but of all .....housing is an essential need. You must live somewhere and you will pay for that. Either to a landlord or to a bank. And if you are lucky enough to buy all cash, to no-one. Will your return on investment be as good as equity or other investments?
Chances are no, especially if you discount the EPSF (enjoyment per square foot) factor. But you must live somewhere. And if doing so affords you the opportunity to build equity and get a tax deduction, that's a pretty wise option.