Skimm Money: Renting Vs. Buying, Raises, And HSAs

Eyes On

Renting vs. Buying

Mortgage rates are climbing. Which, combined with a low supply of homes, means many prospective buyers are opting out of the market. In the coming year, the outlook could be rosier for tenants — rent in major US cities has fallen over the last six months. However, the average tenant still spends 30% or more of their income on rent, according to a recent Moody’s Analytics report. Even millionaires are renters these days. With housing costs on the rise, here’s what to consider when deciding whether to rent or buy.

Your move:

• Ask the big questions. How long will you live in your home? Are you ready to take care of a house (hi, burst pipes)? How could climate change affect your property?

• Figure out what you can afford. Beyond a down payment, consider property taxes, closing costs, and maintenance fees. Calculate your monthly mortgage payments, utilities, taxes, and homeowners insurance.

• Consider the short-term. Generally, you shouldn’t buy a home unless you plan to live there for a few years. Remember, buying a house isn’t the only way to build wealth.

Related stories

• Which Cities Have the Best Deals for Single Renters?

• Want to Know How the Housing Market Is Doing? Follow Mortgage Rates

• How Buyers Can Up Their Chances in a Thawing Housing Market This Spring

For the Group Chat

Traveling the world on the company dime sounds great…

Spoiler: It might not be worth it.

You might not get a big raise this year.

But you could get it sooner than you think, according to a new report.

Want to be happier at work?

Befriend a colleague. 

What’s up? Retirement balances. 

What’s down? The number of 401(k) millionaires.

Highs and Lows

Warner Bros. Discovery stock is on the rise today, even after the company reported lower-than-expected fourth-quarter earnings last week. The silver linings? “Hogwarts Legacy,” a game inspired by the Harry Potter franchise, brought in $850 million in its first two weeks on the market. Also, HBO Max’s hit series “The Last of Us” is attracting high viewership. Looks like investors might be saying, ‘game on.’

5-Minute Money Tip

Max out your HSA before Tax Day.

If you have a high-deductible health insurance plan, you could be eligible for a health savings account, aka an HSA. A major pro: It’s triple-tax advantaged. Your contributions aren’t taxed, your investments grow tax-free, and it can help reduce your taxable income. Take advantage and contribute the max (in 2022, up to $3,650 for individuals) before Tuesday, April 18. You can thank us later.