31K views · 27 reactions | Tired of renting? Here's what you should know before you buy a home. | MONEY | Facebook
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FacebookMONEY
Rent or Buy? Many people jump into homeownership without fully understanding the true costs. That's where the 5% rule helps simplify the rent vs. buy decision! Here's how it works: The unrecoverable costs of owning a home--property taxes, maintenance, and mortgage interest-- add up to about 5% of the home's value per year (whether you have a mortgage or not). If your annual rent is less than 5% of a similar home's value, renting might be financially smarter. If your rent is more, buying could ma
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