The choice between renting a home or buying one is one of the biggest (and most challenging) financial decisions many of us make in our adult life.
The implications that come with buying a home are more varied and complicated than for renting, and it may be hard to decide which route to take. Everyone’s situation is different, but hopefully the quick considerations below may help you make a decision that’s right for you.
3 reasons to rent
- Generally cheaper. Depending on the house, rent may cost you less per month than a mortgage.
- Moving is easier. You have more flexibility in case you need to move, especially if your lease is flexible or month-to-month.
- Landlord usually makes repairs. In addition, the landlord is responsible for the upkeep.
3 reasons to buy
- You may build equity. Should your home appreciate, or as you pay down your mortgage, the value of your home may increase.
- Potential tax benefits. You may be able to write off your mortgage interest or your property taxes, but you should always consult a tax professional regarding the deductibility of interest to make sure.
- Pride of ownership. The pride of having your own home can be very motivating; you have the ability to take that house and make it your dream home. Paint it whatever color you want!
Before making your decision, you should also consider the economy, the cost of property taxes in your county, and where you are in life and/or career.
There are definitely pros and cons to both renting and buying, but my hope is that you take something away from this and do what works – and feels – right for you.
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