Buying Versus Renting Your Home

If you are currently renting or considering to transition from renting to buying a home, you may be wondering which one is the better option. When it comes to buying a home, there are many variables to consider, including but not limited to your mortgage interest rate, loan amount, loan term, and market considerations, such as the geographical area you intend to live in or future expectation of your property value. The costs and benefits to buying versus renting is not always clear, and for existing renters, renting your home may still offer initial, short-term advantages to buying.

Reasons you may still consider renting over buying your home

Reasons you might want to consider buying over renting

If you are still not quite convinced that buying may be the overall right choice for you or may even be an unnecessary move, let us think about this a little more. For most of us, it is a fact of life that we will have to pay for a residence, no matter where we decide to live, and that when it comes to weighing out the pros and cons, the advantages to owning your home would generally outweigh renting in the long-run.

The question is simple. Do you still want to be paying rent every month when you are 65 years old? When you have reached an age suitable for retirement, you deserve to live in your own home, free of mortgage payments and without having to expend energy finding and moving from one rental property to another. Renting a home for your entire life means that you may be required to work at the retirement age in order to support rental payments.

Financial Reasons To Owning Your Home

Buying a home is more than simply obtaining the pride of homeownership. It is also about planning for you and your family's financial future. The advantages and disadvantages of owning a home when compared to renting may be different for everyone and each case must be evaluated on its own merits. Before you decide to buy your home, consider what kinds of expenses you will encounter, such as annual property taxes, homeowner's insurance, homeowner association dues, etc., and then compare that to your cash flow to determine your total debt-to-income ratio. Finally, weigh-in your personal goals and objectives. Will you be staying in the home you purchase for several years? If you can meet the mortgage and other property expense payments on a monthly basis and are looking to stay in a place for more than a few years, then owning a home would make sense in the long-term. Renting a place to live has its short-term advantages, and many individuals have their own reasons to rent, either financially or personally. Renting may also serve as the perfect solution until you have saved enough money to put down towards a home purchase. But in the end, perhaps you may wish to look at things in this perspective - both buying and renting have its costs, but the cost of renting is money you cannot ever recover, while the cost of buying can be seen as an investment for the future.