Moving To Northwest Arkansas | Renting VS Buying In Northwest Arkansas

I went through the same calculations when looking at relocating to NWA. If you are only looking at only staying a few years in the area, renting certainly makes sense because of the flexibility it gives you to more easily pick up and go. Long term, the mortgage payment for a buyer remains about the same each month, although what is collected for taxes and insurance can change the total paid. If the mortgage is for 30 years, the buyer will still be paying about the same amount monthly 30 years from now, but more than likely, the monthly rent payments for a renter would be much higher.

Buyer Steve benefits by locking in his mortgage payment in today's dollars but paying with cheaper dollars in the future, assuming we continue to have inflation instead of deflation. Offsetting this somewhat are the maintenance expenses (HVAC, roof, other repairs) that come with owning a house but are borne by the landlord for a renter. Another factor is that in the NWA area, housing values are appreciating, so the buyer is building equity as time passes by paying down the principal balance combined with the increase in the house market value. At the end of 30 years, the home buyer Steve has a valuable asset, the renter Steve has nothing.

We appreciate your dedication in helping us achieve our goals. :)

Good info, thank you. One elephant in the room we need to address is what is that guy wearing on his feet @ :53??