Owning and renting each have their advantages, but what’s best for you depends on your circumstances. Here are some things to keep in mind as you weigh the benefits of renting against the benefits of owning.
Owning a home is a financial commitment that requires you to plan ahead and reflect on where your life is headed. Before deciding whether to rent or buy, ask yourself what your budget is and if either choice would require you to stretch your finances. Write out your additional financial and savings goals to see how each choice might affect them. Make sure you still have enough money to save for retirement, for example. Compare some specifics to see which is a better fit.
You pay less up front (deposit + first and last months rent, typically)
Most mortgages require a down payment and closing costs
You may not be able to update/ personalize your space however landlords cover most repairs
You can customize your home however repairs/ maintenance is your responsibility
Your rent may increase in the future
Home values can rise and fall over time
Relocating can be easier and you have less responsibility leaving a rental
You may build equity which can increase your personal wealth
The cost question
For years, the rule of thumb stated renting is cheaper than buying—so renting freed up money for other things, such as savings. However, that may not always be the case. Shifting real estate markets mean it may be cheaper to buy than rent in certain areas, though you likely need to pay more up front. The right option for you is the one that best fits your goals and finances. [Adapted from: Better Money Habits]
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Author:Kayla Tolar Phone: 985-662-8151 Dated: October 20th 2017 Views: 1,216 About Kayla: Kayla has been living on the Northshore for the past four years upon completion of her bachelor's de...
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