Whether it’s a single-family home, townhome, condo, or even a multi-family property, home ownership builds equity (Investopedia article here: Equity).
If your home’s value stays the same and you sell it after two years, you will recover some of your money (living someplace at reduced rent).
If your home’s value increases (called “appreciation“) you can break even (living someplace for free),
you can make a profit (getting paid to live someplace).
That NEVER happens if you rent!
Home ownership can even provide income, and there are some great tax advantages too. More details on those topics in future blog articles.
The down side:
Expenses and responsibility. Lots of both.
You’ll need to consider monthly mortgage expense (if any), property taxes, insurance premiums, etc.
You’ll also need to budget for repairs and replacement items, especially if you intend to live there long-term.
Roofing, water heaters, air conditioning units, lawn maintenance, sprinkler systems, pest control, and pool service expenses can add up quickly.
In a single- or multi-family property, you (as the owner) will be responsible for repairs and maintenance for as long as you own the property.
And, in multi-family properties, you will be the landlord, requiring a different set of skills and a higher level of responsibility. It’s also a great way to make your property pay for itself, and probably make money for you.
If it’s a short-term solution, like relocating from one town to another, or if you don’t know how to change a lightbulb, renting is a better choice
But if you like more money in your pockets, buying is the better option.