Making the choice between renting or buying a home can be a tough one to make for some, and for others, buying a home one day is the dream they’re working towards. Not only does it depend on a whole range of factors like your credit score and location, but it also depends on your plans for the future and the lifestyle you want.
These calculations and comparisons aren’t easy to make for everyone, and there are places all over the internet that will tell you one thing or the other. If there’s one thing you need to avoid – it’s places and experts that tell you one thing is definitely better than the other, without taking your personal situation into account.
This is why this article is going to focus on the three things you need to keep in mind while making the decision for yourself, whatever it may be.
Personal Considerations
Not everyone wants to eventually settle into a nice place with a front yard and a picket fence. Others just dream of the freedom that comes with not being tied down to a single place, and with an uptick in remote jobs and the transformation of the way people work, there’s a whole range of changes making it possible for people to have a more nomadic lifestyle.
If this is you, owning a place is of course not a good idea unless it’s for investment purposes.
But on the other hand, if the idea of staying at a single place forever and not paying rent every month intrigues you, becoming a homeowner might be something worth looking into.
The next step is to figure out how you’d go about making this dream a reality.
Location
You should only buy a home if you’re sure you’re going to stay where you are for life. There’s no point buying a home one place and then moving away to a different city after a year, and it doesn’t justify the huge upfront costs.
On the other hand, renting in certain places can be cheaper than owning a house in the long term, even for people who don’t plan on moving anywhere any time soon. If this is the case, check out UMoveFree for places you can rent. You can even choose to own a home in an area other than where you’re currently living if that suits your financial situation better and is something that you would like.
Short Term Costs
You might feel like owning a home is cheaper once you’ve bought it, but the reality might be further from the truth. Think about the maintenance costs, and on the other hand, think about rent payments compared to a mortgage.
If there are any repairs that need to be done in your home, you’ll have to pay for them out of pocket. This can mean anything from a few hundred dollars to even a few thousand – but the same repairs will be taken care of for you if you rent.
On the other hand, your rent might increase a lot every time your rental contract needs to be renewed, especially if you live in an area where housing is high in demand. You won’t face the same issue with owning a house though, where mortgage payments are consistent and predictable over the years.
Like we said at the start of the article, different things are good for different people, and while no one can give you an all-encompassing answer to whether renting is better than owning a home, there is certainly one option that would be better suited to you than the other.
