One of the most common questions I get is, “With high interest rates, should I still consider buying a home, or is renting a better option?”

Let’s break it down.

Rent vs. Buy: Where Is Your Money Going?

Think about it this way: Would you rather pay into someone else’s retirement fund or your own? Every rent payment you make is like giving a gift to your landlord’s retirement fund. You’re helping them build wealth, while you’re left with no long-term investment or equity to show for it.

On the other hand, when you own your home, every mortgage payment you make is an investment in yourself. Your home becomes an asset that appreciates over time, adding to your net worth. While it’s true that interest rates are currently higher, so is the cost of renting. And here’s the thing: mortgage payments can be fixed, meaning your payment stays the same year after year, but rent? That keeps climbing.

Renting Isn’t Always the Enemy

I don’t want you to think renting is a bad thing. For many people, it’s a necessary pit stop on the way to homeownership. But don’t let yourself get stuck in that pit stop for too long. Every day you wait to buy a home is another day you’re missing out on building equity.

The longer you rent, the longer you delay growing your personal wealth through real estate.

Final Thoughts

Yes, interest rates are higher than they’ve been in the past, but they aren’t the only factor to consider when deciding to buy a home. Homeownership is a long-term investment in your future and your financial stability. The sooner you start, the sooner you can begin building wealth.