First step, ignore the advice of others. Why? Because it’s your life, your money and your potential investment. Lifestyle dictates whether or not you should rent or buy, not the advice of friends and family who feel they know what is best.
That being said, we’re going to give you some tips on what to ask yourself to help you determine the best option for you. Consider the following before making that all-important decision.
Do You Plan on Staying?
This question is extremely important. Do you want to move again in the next couple of years? If you do not plan on staying in your new home for the next 10 or 20 years, your best option is usually to rent instead of buy (unless you plan on investing in that house as a rental property in the future).
Can You Afford the Costs of Owning a Home?
Buying a home can be quite costly, and you will need to make mortgage payments for several years in the future. However, there are many more costs to buying a home than simply mortgage payments. When choosing between renting and buying, ask yourself if you can afford the down payment, homeowner’s insurance, taxes and maintenance as well.
What are the Pros and Cons of Each?
There are pros and cons of both renting and owning your home. When you rent a home, you do not have to worry about such things as repair costs, insurance and taxes. The owner takes care of all of that. On the other hand, your monthly rent does not go towards ownership. The home will never be yours.
When you choose to buy your home, you are making a wonderful investment. Typically, the value of a home rises over time. In other words, in ten years, your home will be worth much more than you initially paid for it. However, it will be your responsibility to pay for insurance, taxes and repairs.
Moving into a new home is one of the biggest decisions you will ever make. As such, you need to carefully examine whether you want to rent or buy. There are advantages to both of these options, and it is a choice you will have to make by answering the questions listed above.
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