Financial Vitals: Throw Out The Rent Vs Buy Rules Of Thumb

Are you buying or renting? What are the perks of being a homeowner? Think through and focus on both financial and non-financial reasons. In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about the rules of thumb when deciding whether to buy or rent a home. Topics Discussed: • Why buy? Live in it 3-5 years to break even and recoup upfront transaction costs • Why rent? The best option if you plan to live there only a couple of months or years • Numbers: Mortgage closing, realtor commissions, improvement costs, and ROI • Taxes: Deduct ownership expenses; can't deduct property/mortgage insurance • Insurance: Renter's insurance is less expensive than homeowner's insurance • Homeowners' Association (HOA) Fees: Added costs for homeownership • Uncertainty and Overestimation: Bias of living in a home longer than expected • Lifestyle Creep: Living beyond your means and not analyzing home prices • Headache Factor: Rent-not your problem; buy-home ownership increases issues • The joy of Ownership: Cultural and cool factors to owning your own home • Renting: Gets old not being able to do what you want with your place • Rent vs. Buy Examples: ◦ 2362 Heather Way, Lexington, KY ◦ 8704 Grand Ferry Dr., Austin, TX LINKS: www.WrenneFinancial.com