Home Mortgage vs. Renting

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My plan to pay off my mortgage stalled when I was laid off from my job in June 2019. I still have about $18k left out of the original $160k loan. It doesn’t makes sense to pay off the loan now because I will need my savings to pay other bills. The bank pays the property tax out of the monthly payment, so that helps. Unfortunately, property tax goes up every year by about 4% and there is the cost of maintenance. The best thing about owning a home is that the value goes up every year. In 8 years, the value of my home has increased by 62%. That’s 7.8% per year. When you rent, your landlord is getting all the financial benefits. When I was young, I rented an apartment, and then a home. When I had enough for a down payment, I bought my first house. Later, I got a better paying job and bought a bigger and better house. Now that I am near retirement age, I’m afraid this could go full circle. Selling my home isn’t something I look forward to. But with rent, you have a predictable monthly expense and you don’t have to spend your time and money on upkeep. So, it all depends on your age, health, and wealth. If you are young and healthy, buy your first home as soon as you can afford it. You can always go back to renting if things don’t work out.

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