Renting vs. Buying: Analyzing the Costs

When considering whether to rent or buy, one must evaluate the cost of space and the potential benefits of house hacking, such as living in one part of a duplex while renting out the other. It's essential to calculate what rent would be if not purchasing, as this effectively acts as a baseline for assessing the financial viability of buying. The main advantages of homeownership in this scenario include potential lower interest rates or favorable loan terms, like an FHA loan requiring little down payment. Additionally, having a renter, who is also the owner, ensures steady income and less wear and tear on the property. However, it’s important to recognize that not all situations will yield positive results, and there are often challenges involved. Overall, the decision should involve a careful analysis of financial implications and the potential for profit or loss in different circumstances.