You probably are comfortable renting because you don’t have to worry about maintenance, HOA fees and staying in one place for over a year.
What you don’t realize is that you are putting your money down the drain instead of investing it for your future.
Buy vs. Rent Comparison (source: www.ginniemae.gov)
The chart below shows a cost comparison for a renter and a homeowner over a seven year period.
The renter starts out paying $800 per month with annual increases of 5%
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner’s payment is lower than the renter’s monthly payment.
With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after 3 years.