Real Estate & Housing: free beginner lessons
Real Estate & Housing is a FinCon topic with 5 short lessons. Navigate renting, buying, mortgages, and housing costs. Each lesson takes about five minutes and ends with a quiz.
What will I learn in Real Estate & Housing?
You will work through: Renting vs Buying, Understanding Mortgages, Hidden Costs of Homeownership, House Hacking, Real Estate Investing.
What is in each Real Estate & Housing lesson?
Renting vs Buying
"Renting is throwing money away!" Not so fast. 🏠 Buying builds equity BUT costs more than you think 🏢 Renting is flexible AND often cheaper short-term The right choice depends on YOUR situation—not what your parents say or what society expects.
Homeownership costs beyond the mortgage: 🔧 Maintenance: 1-2% of home value/year 🏛️ Property taxes: Varies by location 🛡️ Insurance: $1,000-3,000/year 🏘️ HOA fees: $200-500/month (if applicable) 📉 Closing costs: 3-5% of purchase price A $300,000 home costs $400,000+ over the first 10 years. Do the real math!
Besides the mortgage, what's a major ongoing cost of homeownership? Maintenance alone runs 1-2% of home value yearly. Add property taxes, insurance, and repairs—homeownership costs far more than the mortgage.
Renting is often smarter when: 📅 You plan to move within 5 years 💼 Your career requires geographic flexibility 🔧 You don't want maintenance responsibility 💰 The rent-to-buy ratio favors renting (many expensive cities) 📉 You haven't saved a 20% down payment Renting + investing the difference can build MORE wealth than buying in many markets.
You're 28, earning $75,000. You have $30,000 saved. Homes in your area average $350,000. Rent for a similar place is $1,800/month. Your job might relocate you in 2-3 years. What do you do?
Buy — stop 'throwing away' rent money: With $30,000 down (8.5%), you'd need PMI ($150/month extra). Mortgage + taxes + insurance + maintenance = ~$2,800/month. If you move in 2-3 years, closing costs ($15K buying + $21K selling) eat most of your equity. You'd likely LOSE money.
Keep renting and invest the difference: At $1,800/month rent vs $2,800 ownership costs, you save $1,000/month. Invested at 7% for 3 years = ~$40,000. You maintain flexibility for the potential relocation. When you're ready to settle, you'll have a much bigger down payment.
Buy a cheaper fixer-upper for $250,000: Lower price but renovation costs are unpredictable. First-time buyers consistently underestimate by 50%+. With a potential move in 2-3 years, you might not finish renovations before selling. The stress and financial risk are high.
Buying makes sense when you'll stay 5+ years and have 20% down. Short timelines and small down payments often make renting the wealthier choice.