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Last Updated on August 24, 2022
It’s a conundrum anyone looking for a place to live faces. Should you rent or buy? The debate has been around since most of us can remember, but is there a clear-cut choice between the two? Is one truly better than the other?
That’s a decision you will ultimately have to make for yourself. This article is here to help you understand the good, the bad, and the ugly of each scenario so you can make an educated financial decision. Whether you’re looking at a two bedroom house, the average rent in Memphis, Tennessee or you want to settle in one of the apartments in Denver Tech Center, or anywhere for that matter, which option is truly the best?
Neither Is A Completely Good Or Bad Choice
Up until the housing crisis, homeownership was considered the way to go. It was a measure of one’s financial status and an investment with several perks that paid off in the end. In recent years, however, mindsets have changed to say that buying a home can be a bad financial move.
There’s no denying that homeownership has been oversold for decades, but that doesn’t mean renting is without its critics. Even as renting becomes a more popular choice, the stigma that has always surrounded it still exists. With so many conflicting viewpoints and information out there, it can be tough to discern between everyone’s bias.
The Positives
Instead of focusing on one or the other, it’s important to look at the benefits of each option. For owning a home there is:
- Once you pay off the house, it is 100% yours. The expense of housing is then eliminated.
- If the home appreciates more than you’ve paid into it, you make a profit. There’s also a good chance you will at least break even.
- There are more buying options with individual sellers, like trust deeds which this website explains in detail.
When it comes to renting:
- You still own your home, you just have to pay a little more in interest and taxes.
- Repairs and maintenance are all taken care of.
- You aren’t tied down to one location. Once your lease is up, you can choose to stay or move.
Each of these points are great, but to find which option is the best for you requires punching some numbers and considering a few factors.
Individual Factors
There are some questions to ask before jumping on either bandwagon, with the first being how long will you live there? Obviously a Coral Gables apartments is best in Miami for the short term, but the longer you stay in one home the further your costs are spread out. If you plan to stay in one place for more than seven years, you might want to consider buying.
The area you are looking at affects the cost of housing, too. If you were looking at places in Manhattan, then you would find that housing is an astronomical expense. Studio apartments NYC | The Cole Apartments specifically, would allow you to live in the Big Apple without breaking the bank.
Would the down payment you put on a home be more beneficial to you if you chose to invest it in the stock market, a CD, or even a high yield savings account? At the same time, would the down payment lead to a mortgage that costs less than your current rent? It’s important to consider what the best use of your money would be.
The answer to this age old is question is in rephrasing it. Which option is the best for you? Renting and buying both offer a wide variety of benefits. Ultimately, it all depends on the person and the circumstance.
