Conventional wisdom has suggested for years that buying a home is more financially advantageous than renting. Homeownership offers the opportunity to build equity, enjoy a predictable mortgage payment and take advantage of tax incentives, among other benefits.
However, a new analysis of the choice between buying and renting could tip the scales toward the latter in the quest to build wealth, according to a report by Hunter Housing Economics highlighted by Quinn Residences, which develops single-family homes for rent.
The report said that while monthly payments, accumulation of equity and initial cash outflows should be included when considering renting or buying, other factors should also be considered. These include the long-term costs of renting vs. buying over the desired occupancy period and a realistic comparison of probable asset returns over time.
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