Question

I want to
build equity in my
home. Equity is the
market value of the
home minus the
amount of money I
still owe on my
mortgage.
Does this factor I'm considering
favor renting or buying?

Answer 1

Building equity in a home generally favors buying rather than renting. When you own a home, you are paying down the balance of your mortgage each month, which increases the equity you have in the property. Additionally, as the market value of your home increases over time, your equity will also grow. In contrast, when you rent a home, you are not building equity in the property because you do not own it.