It Doesn't Make Cents is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.We’re often told that owning a home is the ultimate in adulting and achieving the American Dream. You hear a lot about “throwing money away” as a renter. But are you really? And can you still build wealth even as a renter?In this episode, we’re going beyond the numbers, and which is the “smarter” financial choice. We’re looking at the rent vs. buy debate in terms of lifestyle and your individual money goals.Topics covered in this episode on rent vs. buy* Do expenses truly stay the same when you buy a home? Or do those costs go up, similar to renting?* What’s “throwing money away,” really?* When does it make more sense to rent vs. buy?* How do you decide if it’s time to buy a house?* Building community and putting down roots as a renter.* Buy vs. rent isn’t just about the numbers.* Using your home as a store of value.* Exploring the options when you decide to move out of a home: sell or rent it to someone else.* What you need to know about the upfront costs of renting and buying.Sources used for this episode on buy vs. rent* An interesting article on how more people see homeownership as a lifestyle choice rather than a financial necessity.* We mention Alyssa Davies of Mixed Up Money.* Miranda’s numbers from the episode when comparing her rent vs. buy experience:* I use the quick and dirty rule of 3% a year to average out inflation. Rent was stable for three years, then went up 4% last year. Rent next year will go up 2%, so I just factor that in. When I had a home, my property taxes increased between 2% and 5% yearly.* Right now, in Idaho, with our homeowner's exemption capped, some people see property tax increases that amount to my increase in rent—or more. For example, in the last five years, my rent has gone up by $350. Property taxes on the median home value in my area have increased by about $357. So, my increases are in line with what someone paying property taxes in my area is seeing. * Check out our Season 1 episode on deciding to pay off your mortgage early.* Miranda’s first-person story from Newsweek about choosing to rent after having owned a home.* Information about CCDs, HOAs, CC&Rs, and other important terms that you might need to know when you buy.* Understanding Section 8 vouchers.* Some people are being priced out of homebuying.* Sarah has an article on Zillow about misconceptions related to homebuying.* Jannese Torres tells her story to CNBC about buying in Puerto Rico, even though she rents in Florida.* How to plan to save for renting.* Home Loan Toolkit from the CFPB.* An in-depth article from HomeLight on deciding to sell your home or rent it out.* Government-backed housing and home loan help.Our financial resourceInterested in learning how to build a secure financial future as a renter? The New York Times has an article featuring a variety of successful renters (including Miranda). This is a helpful resource as you decide what works best for you.Consider supporting us by upgrading to a paid subscription here (so we can continue to keep doing this work)SubscribedOr, for a one-off donation, buy us a refreshing beverage on Ko-fi.And make sure you check out our websites as well:* Sarah Li-Cain* Miranda Marquit Get full access to It Doesn't Make Cents at itdoesntmakecents.substack.com/subscribe
