BUY or RENT.
Among the greatest debates of all time.
I just wanted to add a fresh perspective, to all those " permanent renters", from a purely financial standpoint.
If one were to purchase a property today, at rates of 6.5%, and hold that property for the full 30 years, and then sell the property.
What will the net cost be for the 30 years?
I asked this question to an AI model, and the answer was surprising, but not unexpected.
For purchase, I used a hypothetical $1 million dollar home, with $1500 in common charges and taxes, with a 3% annual increase.
Standard 20% down, and 3% in closing costs.
Grand Total; $2,906,600
For rent, I used a $4500 rent rate, with 3% annual increases.
Grand Total; $2,569,072
If you then sell the property, It will probably have appreciated, but for this example I did not include any appreciation.
After closing costs of 8%, you are left with $920,000.
2,906,600 - 920,000= $1,986,600 !!!!!!
No need to explain any further.