Can I Afford to Buy a Home?
You’re probably asking yourself, “Can I afford to buy a home?” Gaining a little perspective here is helpful.
First, consider the facts. Once you make a rental payment, it’s gone forever. You get nothing permanent in return. While rental payments are gone forever, every mortgage payment you make goes toward something you own, namely your equity. The longer you are in your home, the larger your equity.
Additionally, over time your income will likely increase much faster than any increase in your mortgage payments, whereas rent payments grow at least as fast as your paycheck.
Add to that the tax benefits and increased security that go hand-in-hand with homeownership. Perhaps a better question you can ask yourself might be, “can I afford not to buy a house?”