If you plan to stay forever in a certain place, buying is better than renting. Banks and mortgage brokers offer such a huge variety of loans that it is almost impossible not to find the right mortgage loan for your housing needs. Some loans will also help you invest in real estate or start a house flipping business. Debt is good if you know how to handle it and if you know when to stop.
Why is buying better than renting? Buying is better than renting because rents and mortgage payments are quite similar in most places. However, in the most expensive cities to live in the USA your dollars can buy less space than in other cities. If you are working in a region with a very high cost of living, a way to cut down the costs would be to move outside the city, refinance your mortgage (or short sale your house) and commute. But when the cost of commute is too high to make such a move worthwhile, then stay where you are. Play with your numbers and try to keep more money in your pocket! Any savings that you make could be directed towards reducing your principal. In this way, you willpay off the mortgage faster!
Moreover, buying is better than renting because of the following reason: when you buy a house with a home loan, you start to build equity in that property from the very first payment. A house is a useful debt - you get to live there, or you can use it to generate extra income while you buy it piece by piece, every month. This doesn’t happen when you rent. When you rent, you contribute to the landlord’s mortgage.
So if you look at things from this angle, then you can choose a house that is more suitable for your family, and pay a little more dollars than the monthly rent would be, or you can think about buying a small residential property for your family, and invest in a second home - one that you can rent either long-term or short-term. When you enter the debt cycle, do it right and use your pristine credit score to get the maximum out of the banking system. Talk with a real estate agent and see how you can split the highest loan amount that you can get between two properties and explore the market together.
The reason for most real estate purchases is to leave something behind, for our children. Real estate is an excellent investment because houses will always be valuable assets. But there are also many niches that you can specialize in, as a real estate investor. You may want to bet everything you have on commercial real estate. But a piece of wise advice is not to put all your eggs in one basket. So, if you have the support of your spouse and your marriage is strong, grow your investment portfolio! Look for vacation rentals, or take the plunge and explore the trend of tiny homes. Or maybe you have a big heart and are more inclined to help the poor or the ones with special needs. There is a shortage of affordable special needs housing as well.
So, whether you purchase a single family house or an investment property, it is better to buy than to rent. And as long as you keep your debts below 40% of your income, everything will be fine.