How to Decide Whether to Rent or Buy a Home
Can't decide whether you should rent or purchase a home? Consider the following three key factors when making this life-changing decision.
Your Housing Market
All housing markets are not created equal. If it’s more affordable to buy a house than to rent in the area where you live – it’s a smart financial decision to buy. Run a cost comparison to see if buying will save you money over the next five years versus renting.
Do you plan on living in the same area for the next five years? If the answer is yes, then buying may be the best option for you. If on the other hand, you have a job that requires you to move quickly and easily – renting may be your best option. Owning a home is a financial and lifestyle commitment. Wherever you buy, you should be prepared to invest in your home financially and to put down roots in the area.
Your Financial Goals
The money that goes into buying a home doesn’t end at the time you purchase your home. Maintenance, taxes, repairs and insurance are all costs associated with owning a home that can add up quickly. However, owning a home also has its financial benefits such as building equity. It is best to consider all of these different factors before you make the decision to buy. A good idea is to begin saving before you decide to purchase a home so you have enough in the bank to cover unexpected expenses after the sale.
The choice to buy or rent is a deeply personal decision that shouldn’t be taken lightly. Be sure to consider all of these factors before committing to either option.
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