Renting vs. Buying | What to Do?


“Should I continue to rent? Or should I buy?” is the single most common question I am asked, except for maybe “What is my home worth?”  

I’m often asked why renting can seem cheaper than buying. This The New York Times Real Estate Section reader is wondering that too. While Trulia’s Chief Economist has a sensible response, he’s not telling her the whole story.

The reader is missing two points:

  1. When you pay rent, you’re paying an expense. When you are paying your mortgage, you are investing in an asset. Not only are you investing in an asset, but it’s an asset that historically raises in value over time.
  2. The tax advantages of the mortgage interest deduction over time is such so that on a post-tax basis, the monthly difference in cost is much smaller.

What if you are sitting on the fence?  Here’s some food for thought…

The real estate experts are telling us that home prices will continue to rise in the bedroom communities of New York City, as will interest rates. And we’ve already seen this happen. What does that mean for you?  Less house for more money.

As with everything in life – talk to the experts, like your account or financial advisor, for advice that suits your specific needs. 

FOUNDER & LEAD CONTENT STRATEGIST This blog is a creative outlet for the love of home design and art, doable DIY, indulging in good eats, and throwing a good party. While I write many of our articles, I’m not the only voice. Interior designers, architects, tradespersons, makers, and good friends with special talents share what they know. I live in a gorgeous 1895 Victorian, No.139, with my husband Gary McDaniel, our three kids, a cranky old cat, and a golden retriver. While only four other families have called this place home, some of them made really bad choices that altered it’s classic design. And there was a cheap flipper in the mix too. Now, we’re cleaning up their messes. My day (and weekend) job as a REALTOR®-Salesperson for Coldwell Banker Residential Brokerage in Maplewood, NJ, gives me a unique opportunity to peek inside homes. Whether a it’s a sparkling or still-in-the-rough kind of diamond – all are dream worthy. In 2018, Lisa Danbrot and I co-founded the annual trade show, Resource Home Show.

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