Should you rent or buy your home?
A common, yet complex question.
If only the answer was as simple as choosing one of the two.
We’re not that lucky.
In fact, if anyone tells you that one is always better than the other, just smile and nod.
And then find someone else to give you advice…
Part of the problem with this issue is when people think it’s only a financial decision.
It’s not always about saving every single dollar.
It may mean more to you to have the freedom of renting. Or it may mean more to you to have your own home.
This article is mostly focused on the financial aspect, but remember, it’s not always about the money.
The Usual Story
You are a newlywed and you want a house. Actually, you want a home, not a house.
You have always heard that it makes more sense to buy than to rent. After all, this is your home and renting is just throwing money away, right?
So, you find a Real Estate agent and start searching for your “dream starter home”. (An oxymoron, I know)
Maybe you have always heard that you rent a house, but you buy a home.
You think buying is the only obvious option for you.
Then one night you get curious and start searching the internet to make sure you are making a wise decision.
All of the sudden your world is shattered.
You begin to see article after article on why you shouldn’t buy a home and why you should be renting.
OK, maybe it’s not that dramatic. Maybe your world isn’t exactly “shattered”, but it does make you stop and think.
Take it Easy
Let me go ahead and clam your nerves.
There is no black and white answer for everyone.
There is a time to rent. There is a time to buy.
There is also a time to build.
Every situation is different and unique.
When the Answer is Obvious
There are a few times when the answer it obvious.
If you plan to move soon…rent.
If rent is extremely expensive in your area and it’s much cheaper to buy…buy.
If you want a very specific home that you plan to live in for the rest of your life…build.
As far as the rest of the time, like I said, it’s not black and white.
When the Answer is Not Obvious
What happens when there is not an obvious solution?
You will have to do some homework.
You will need to look at the pros and cons of your specific situation. You may even have to run some numbers. I know, it sounds scary! But you will be just fine…I promise.
We will look at some of the general pros and cons of buying vs. renting in part 2.
It’s not always easy, but it’s much easier than the “professionals” make it seem to make your decision.
Don’t let someone talk you into a decision that they profit from.
For example, a real estate agent may not be the best person to ask about whether your should be buying or renting.
On the other hand, if your brother-in-law has an empty house for rent, you may not want to ask him for the advice either.
Join me in part 2 here where we will discuss the pros and cons. We will also take a closer look into the buying vs. renting debate…