rent vs buy

Is it better to rent or buy? The answer depends solely on you, your current situation, and your future plans. If you plan to move in three years or less, want lower move-in costs and do not want the responsibility of home repairs or HOA dues; then renting may be a good option. However, if you want the ability to customize your home to better fit your needs, tax deductions and the ability to earn a return on your investment, then purchasing a home may be a better choice.

The costs involved in renting are straight forward – first and last months’ rent, utility set-up and moving expenses; but when purchasing a home, your cost can vary depending different variables. Initially, you can anticipate the upfront costs of down payment and closing costs; followed by monthly and annually recurring expenses such as homeowner’s insurance, property taxes, homeowner’s association dues and maintenance costs.

Another consideration when deciding whether to rent or buy is where you live or want to live.  There are times when individuals choose to rent because home prices are too expensive in the area that they want to live in. However, there are also times when the monthly expense of a rental property is equal to or greater than that of a monthly mortgage payment for a home in the same area.  

These a just a few of the factors to consider when deciding whether to rent or buy. The principal factor is you, where you are currently and your future goals. Just remember, the decision whether to rent or buy is a personal one and neither choice is perfect or right for everyone.  So, choose the one that is right for you!