To see if buying or renting a home is better, we can follow twin sisters Morgan and Lisa over 30 years.
Morgan bought a house for 400,000 dollars and she used a mortgage loan . She had to pay a large down payment and all repair costs herself. She spent 1.4 million in total, but her house became worth 1.3 million. On the other hand, Lisa rented her house, which means she started with much smaller costs. Her landlord paid for all home repairs, and Lisa invested her saved cash into a retirement account. After 30 years, Lisa spent 900,000 dollars on rent, but her investments grew to 500,000.
While buying gave Morgan a stronger financial outcome in the long run, renting provided Lisa with more freedom, flexibility to move, and lower monthly costs early on.