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.This is not always true. Often, the price of real estate outpaces rent. I.e. renting is cheaper than buying.As a renter, you're not paying property tax, insurance, repairs, maintenance, and maybe utilities.As a renter, you have no risk. Remember 2008 when housing prices tanked?Making money off your house often depends on how good a negotiator you are.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.The first few years of your mortgage, you aren't gaining much of any equity. It's nearly all interest payments.A renter can walk away any time. This is why renting is better if you're going to stay less than 5 years.