Buying a House versus Renting

Question:

Is it worth it to buy a house versus renting an apartment.

I did a simple cost analysis in Akron, Ohio (my hometown).

*The payment is $600 for renting and buying in this analysis

Renting:

Let’s assume the average rent is about $600, this is for the Akron, Ohio area, where this amount of rent is a reality.

$600 for a 15 year span (modeling a 15-year fixed mortgage) is $108,000.

Buying:

Buying a house with similar payments (~600), would be about a $109K home, with 20% down (22K), would equal about a $818 monthly payment (includes taxes and insurance) would equal a total payment in 15 years of $169,240.

Impression:

$108,000 < $169,240

Some other factors to consider:

FOR Buying:

You lock in the mortgage payment at a fixed rate and can accelerate paying off the mortgage, and it could reduce the overall amount paid. More equity sooner.

You have more privacy, it is your house and land.

Possible (not guaranteed) appreciation in value, the house could be a wise investment.

FOR renting:

There is more portability with renting, if you find a lucrative job opportunity, it is a simpler process to leave an apartment lease. Freedom in mobility.

All other things equal, the property is maintained for you (no shoveling snow, no mowing the grass).

Save on utilities due to smaller spaces.

Overall analysis:

Buying a home can be a wise investment, it can offer freedom and privacy, but one shouldn’t rush into it unless they are confident they are ready to settle down in one area and are able to commit to the extra work that is involved with it.