the lead post is full of exaggerated BS. BUT… renting is very often a better idea than buying for alot of people.
I bought my home because i got married and had a baby on the way. However, i stood fast on the requirement for income generation. We bought a home with a lower apt. that we are now renting for $600 a month.
When considering the two options; rent vs. buy, you absolutely must consider all costs. not just payments and taxes.
when you rent an apt. for $600 a month including utilities, you must then factor in the utility costs at the home you are looking at buying.
when you factor in the mortgage payment, interest, taxes, utilities, maintenance, and other costs associated with buying a home and then subtract an all inclusive monthly rental payment you begin to understand why it makes sense to rent in alot of cases.
Additionally, there is a very strong case for renting from a flexability stand point. you can exit a rental agreement alot faster and alot cheaper than a mortgage. This is why ALOT of businesses lease mall space, plaza space, office space etc. rather than buying. It gives them the flexibility to relocate, expand or close up and liquidate fast.
i dont want to get into detailed examples, but i have seen and known young people to get into mortgages that were $1600 a month, with another $400 a month is associated payments (taxes, utilities, incidentals) adding to a $2000 per month commitment (about $500 of which is equity per month). When they could have received the same living space and no decrease in quality of living in that $600 a month inclusive rental payment at a decent apt.
that is a $1400 per month positive cash flow for renting vs. buying.
that $1400 invested moderately will always be better than investing in home equity.
CASH > EQUITY
Banks loan against equity because it can be converted into cold hard digital cash