Making a mortgage payment is similar to paying yourself because the money goes into building equity of your real estate property. After paying off the mortgage, the real estate property belongs to you 100%.
- Buying a home is a long term play. Common mortgages are 15 years to 30 years fix rates.
Making a monthly rental payment is money going into your landlord’s account. After your lease ends, you don’t own any part of the rental property that you have been paying for every month for the past 1-2 years.
- Renting fits someone who needs flexibility, and don’t require a large upfront cost.