For many people, buying a house is part of the American dream. But is it always the best path? If you are tired of “throwing money away” on rent and thinking about buying, it is important to take enough time to ensure that it makes sense to your position – financially and emotionally.
Ramit Sethi, author of the book ” New York Times best seller I will teach you to be rich A famous Bodcast host with the same name, he recently spoke with a couple who bought a house in Arizona after increasing their rent, and discovered that he might have been the smartest financial step.
What started as an effort to escape the high housing costs quickly turned into a financial strain, says Sethi, it was possible to avoid it with a more thinking approach. The couple now finds themselves pushing more mortgage than they would have to rent them. They are far from alone.
In “We bought a house … to avoid the high rent. Great error” from Funds for podcast couplesA couple explains that they bought a house in Arizona in 2022 because their rent was rising.
They started paying $ 1,300, which rose to $ 1,800. Then the property owner wanted to raise it again to about $ 2,400, so they decided to buy instead of putting their money “towards nothing.”
Today, monthly housing costs, including mortgage and desert duties, a total of about 2700 dollars – $ 300 is higher than if it remained on the rent. This is without a long -term maintenance cost, which can be in a place like a very slope Arizona if air conditioning comes out.
“I was afraid of increasing rent, but you are now paying more,” I told them. “The rent does not throw money far away. It is a financial decision and lifestyle,” he explains. “You can also throw money on the interest.”
According to Sethi, the idea that rental is “money eliminating” is one of the largest financial legends in America. Compares it to buy a car or subscription to the service – the rent is simply paying for a place to live in.
The largest point for Sethi is that the rent is not a failure, it is a right choice for many people, especially when the prices of homes are high and the stock is narrow. In fact, according to USA todayThe monthly cost of leasing in all 50 largest metro statistical areas was 37 % cheaper than the purchase of a typical home in 2024.
https://media.zenfs.com/en/moneywise_327/7253aa1207f9d027feb4ea509457f419
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