Chances are you have asked yourself at least once, “is it better to buy or rent a home?” Often times, you’ll hear many argue that the best option is to own a home. Contrary to popular belief, there is no one universal answer. However, you should be asking yourself “based on my current situation, is it better to buy or rent?” Moving is a big part of life and is always an extremely important decision, especially if you intend on your next move being your last. A home is a great investment; however, buying a home is a huge responsibility which is why renting is seen as a very appealing alternative. When coming to a conclusion on which option is best for you, there are a few things to keep in mind.
One of the largest factors in deciding whether to rent or buy a home is the financial impact it will have. It is important to make sure you figure out where you stand. Check your credit score, your savings, your balances, and your ability to pay. If you’re already under a great deal of financial stress, it's probably best you don’t take on any more. If all is well and promising, you should make sure you have a steady flow of income. If your job is secure and you have a positive net worth, buying can be in the realm of your possibilities.
Another important thing to consider is mobility. Renting is great choice for short term living. If you plan on moving often or in the near future, renting is most likely the better option for you. Even if you do not plan on moving anytime soon, the option to pick up leave at your will and not being committed to a single home can be liberating. Buying a home is better choice for long term living. This is perfect if you’ve decided to settle down and know where you’d like to live. Also, if you do happen to later decide to move again, you can play the role of landlord and rent it out to others as opposed to selling it, depending on your financial situation.
The wonderful thing about owning a home is the equity benefits. Your property value and equity in your home can grow over time. You do not have to answer to landlords and you become more independent, the place is yours. This of course means that you do have to take on the responsibility a landlord would have. This means if anything happens to your home, you are responsible for fixing it yourself. On the other hand, renting does not come with as many freedoms as owning. When you rent, you cannot permanently alter the structure without subjecting yourself to a hefty fine unless pre approved by the landlord. You also have to abide to the terms and conditions of your lease when you rent.
Overall, whether it is better to buy or rent a home is incredibly highly dependent your personal circumstances. Consider the factors above and you’ll be able to make an informed choice on what’s best for you. For more information about home buying that can be helpful when making the decision between renting or buying, download our eBook now.