From the course: Economics for Everyone: Housing Markets in Crisis

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Renting vs. buying

Renting vs. buying

From the course: Economics for Everyone: Housing Markets in Crisis

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Renting vs. buying

- One of the most important financial decisions people make is whether they want to rent a home or they want to buy a home. This has a lot to do with people's preferences and what their lifestyle is like. For me, I moved over two dozen times between when I graduated high school and when I was 35. If I had bought a home every time I moved and then had to sell it when I moved again, it would have been crazy. It wouldn't have made sense. And so, for many people who move around, buying homes may not make sense either. Looking forward, as we see a trend of remote work or working anywhere continues, we're likely to see some people continue to prefer renting over buying, but there are big advantages to buying homes. After all, you get an interest deduction on your interest payment, and sometimes buying a home and that monthly payment can be very close to what a rental payment would be. Still, there's a lot more risk in buying…

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