Ok– we all have been indecisive about if we should rent or purchase a home, especially when your living in high profile cities like LA, Chicago, and New York. Renting seems to be the only option to do that’ll provide a roof over your head. Then again–when you start to think about how much rent you’ve payed out each year– you start to wonder...All this money could have gone towards a home.
Well, I have some advice for you from Stacey Tisdale who has the solution for those of you who are curious if you should rent or buy.
There is no question that homeownership is one of the smartest ways to build generational wealth, but just like all financial decisions, the choice to buy a home should be made within the context of your overall life goals. A survey by Interest.com found that 1 in 4 people regret buying their home. “Owning your own home is an integral part of the ‘American Dream.’ Like every dream, however, it isn’t necessarily the right decision for everyone,” says Rick Kahler, president of Kahler Financial Group. If you’re deciding whether to rent or bury, keep in mind that you should spend no more than 30% of your after-tax income on housing costs. In addition, renting may be a better option if you think you’ll move before at least two years. You should also consider whether you need mobility. Homeownership or renting can be integral parts of your wealth-building strategies, but only if you make a choice that’s right for you.
Source: Black Enterprise