One of the harder decisions someone has to make in their life is whether to rent or buy their home. There are benefits to both options but there’s no right answer. So how do you find the option that’s right for you?
Reasons to Buy
There are strong emotional reasons for buying a home — and potentially stronger financial reasons. Owning can help you feel grounded, and part of a community. It can provide a sense of accomplishment and a place to build family traditions. Often, you have more space than you would in a rental unit that costs the same amount of money.
Reasons to Rent
On the other hand, you might decide to rent rather than buy a home for practical and financial reasons. If you’re on your own, for example, getting together a down payment and managing the expense of a mortgage, taxes, insurance, and upkeep may put too great a strain on your budget. And having all your assets tied up in your home has serious drawbacks. Among other things, it makes it harder to save up to meet other goals that are important to you.
What to Think About
Here are a few questions to ask yourself when making the decision:
Are you ready to make a down payment? Most financials require a down payment between 5-20%.
Will you need to move again soon? It’s much harder to change homes than apartments.
Do you need more space? Big apartments generally aren’t affordable, but a home can offer a lower monthly payment.
Can you afford the upkeep? Owning a home means renovations, sudden repairs, and other expensive costs.
It’s a hard decision for anyone to make. Take the time to think about your options and what you want out of your home.