This episode is sponsored by Eckard Enterprises. To start empowering your financial future, visit www.EckardEnterprises.com

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: Real Estate Home Price Indexes Price To Rent Ratio Austin Rental Example Lexington Rental Example Research on Renting vs Buying Finance For Physicians