As a Realtor, another question I get asked often is: How do I decide between renting and buying, and how long should I continue to rent?
Buying vs. renting can be a difficult decision, and the questions I usually ask the individual are:
1) How long are you planning to stay in the area
2) Whether you’re ready to make such a large financial commitment
If you are willing to stay put for five plus years, buying can be a smart investment and make more sense, given that the key roadblock to buying a home is the inability of many first time home buyers to afford the down payment, which is typically 20% of the purchase price (as mentioned in a previous post!)
If not, renting may work out better, given the flexibility it provides and the lower amount of risk.
Something to keep in mind is the fact that homes typically increase in value year after year, build equity with mortgage payments and provide a stable investment for the future. Your costs are predictable and more stable than renting because they're ideally based on a fixed-rate mortgage. The interest and property tax portion of your mortgage payment is also a tax deduction. And sometimes, your mortgage payment could easily be less than or equal than your rent payment!
Please like, share, or comment below!