Owning and renting each have their advantages, but what’s best for you depends on many factors. Keep these things in mind to determine the benefits of renting vs the benefits of owning.
Evaluate if you are ready to make a long term financial commitment and also plan to stay in place for a period of time. Of course, budget is a big factor. Compare the costs of renting vs. buying and the ongoing monthly responsibilities. There may also be some tax benefits to buying, so you may want a discussion with your CPA.
And you will also want some money left over, so you don’t feel tied to a huge obligation, with no extra for surprise expenses or for some fun.
|You pay less up front.||A down payment will be a sizeable chunk. You can save up or accept a gift from a family member or take advantage of first time buyer special programs. And there are closing cost.|
|It might be impossible to make this home your own, since you are renting. Upgrades or décor changes are not up to you. Repairs and maintenance are the landlord’s responsibility.||You can customize and update depending on what you want. And repairs & maintenance are your responsibility.|
|Rent may go up in the future.||With a fixed loan, your monthly payments will be the same.|
|Relocating will be easier. If you plan to change jobs to another area, renting may be for you.||Staying in your home will help you build equity, and wealth for your future.|