The cost of being poor: Why it costs so much to be poor in America
> If you can qualify for a mortgage, you have a big leg up on people who rent.<p>This is not always true. Often, the price of real estate outpaces rent. I.e. renting is cheaper than buying.<p>As a renter, you're not paying property tax, insurance, repairs, maintenance, and maybe utilities.<p>As a renter, you have no risk. Remember 2008 when housing prices tanked?<p>Making money off your house often depends on how good a negotiator you are.<p>Most people neglect to consider transaction costs. For example, you have to pay your real estate agent 6% of the sale price of the house. The house also may sit vacant for many months waiting for a deal, this is all dead weight cost.<p>The first few years of your mortgage, you aren't gaining much of any equity. It's nearly all interest payments.<p>A renter can walk away any time. This is why renting is better if you're going to stay less than 5 years.