Should You Buy or Rent a Home? [Video]

by Financial Design Studio, Inc. / June 12, 2024

Wondering if you should buy or rent a home? In this video we breakdown the advantages and hidden when you buy or rent a home, and even if you should consider building instead!

Should You Buy or Rent a Home?

People will tell you that renting a home is throwing money away. We disagree.

Here’s the mortgage math . . .

Let’s say you get a $500,000 mortgage at 7%.

Over the first three years of that mortgage, you will have made over $120,000 in payments . . . and the amount that went to your principal is less that $17,000.

If you are only planning on being in a house for a few years, you will barely own that home anyway.

You can choose to “throw away money” on rent or on mortgage interest rates.

There are hidden costs to both renting and buying. But if it helps you achieve your financial plan, what does it matter if you are reaching your goals?

We break down both in our video “should you rent or buy a home.” Watch it to learn more!

More Resources

Listen to our full conversation in episode 44, “Should You Buy Or Rent (or Build?).” Find it by streaming the Behind the Designs podcast.

If you have more questions, then reach out! We specialize in complexities like executive compensation, tax planning, and investment management. Our team would love to see how we can help bring confidence to you and your family’s finances.

Thanks for watching! 

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Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.