Which is better: Buying or renting a home? - Ella Feldman (Level 1)

Morgan and Lisa are twin sisters. They live in the same kind of house, next to each other. Morgan bought her house. Lisa rented her house. Many people think buying is better than renting. Here is what happened over 30 years. At the start, Morgan paid $50,000 to buy her house. Lisa paid only $3,600 to move in. After five years, Morgan spent more money than Lisa each month. But later, Lisa's rent went up. After 30 years, Morgan finished paying for her house. She spent $1.4 million in total. Her house is worth $1.3 million, so she lost $100,000. Lisa paid $900,000 in rent. She invested $40,000 and it grew to $500,000, so she made $460,000. Her total loss was $440,000. In the end, Morgan lost less money. But Lisa had more freedom. She could move to a new city for a job.