One of the biggest financial decisions we make is regarding our housing. If we live on our own, our monthly rent or monthly mortgage payment is probably one of the biggest monthly expenses in our budget. Therefore, the question, “Should I rent or buy?” is one that a lot of people struggle to answer because they want be sure to get it right.

Here are a few factors to consider when deciding whether renting or buying is right for you.

• Flexibility: renting provides a little more flexibility than buying does, particularly if you’re not sure how long you will be in a certain area.
• Insurance and taxes: homeowner’s insurance is generally more expensive than renter’s insurance, but there may be tax benefits in buying a home that aren’t available if you rent.
• Maintenance and repairs: if you buy a home, you’re responsible for all repairs, whereas if you rent, someone else may be responsible for these expenses.
• Renovating and decorating: if you rent, you may be limited in what you want to renovate or how you want to decorate.
• Privacy: if you want peace and quiet, then renting an apartment may not be the best idea; although, even if you buy a house, you could still have nosy neighbors!

Resources

• https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
• https://www.nerdwallet.com/mortgages/rent-vs-buy-calculator
• https://www.nerdwallet.com/blog/mortgages/how-to-decide-whether-to-buy-a-home/
• https://www.irs.gov/pub/irs-pdf/p530.pdf
• https://www.nerdwallet.com/article/fha-mortgage-insurance
• https://www.quickanddirtytips.com/money-finance/real-estate/buy-or-rent-a-home-which-option-makes-you-richer