Buy or Rent?

Currently in my life I am trying to make this decision, so I thought I would do a little research to see what the best choice for me and my future husband to make would be.

First I'll start by explaining the benefits and reasons to buy a home instead of renting. I found this opinion piece that does a good job explaining the top five reasons to buy instead of rent. Makes since, but is it right for everyone? We shall see. Number one, housing cost is more stable. Rent payments can change and typically increase each year and most mortgage payments remain the same for the entire length of the loan. Two, possible tax savings. People who own homes can be qualify for considerable tax savings; because a person can deduct the mortgage interest and property tax from the federal income tax. Three, debt consolidation, if needed a person can refinance a loan to merge other debts, which is also tax deductable. Four, equity; instead of making payments to someone else, a home owner is building their equity. Equity is money in your own pocket when the home sales, instead of the land lord’s. And lastly, it’s yours! When it’s all said and done, the person owns it, can do whatever they want to it and can have as many pets and they please. These benefits of buy a house seem to be pretty good reasoning to purchase instead of rent…

But here is an advocate for renting forever instead of buying that makes a good argument. Renting is more flexible. With renting there are virtually no tie downs. A person can pick up and move at the drop of a hat for job reasons, or whatever may arise. Also, someone else does the repairs. When you own a home, it’s your problem, but with renting, the landlord should be responsible for the maintenance. Another aspect to see it as, renters insurance is much cheaper than home owners insurance. Homes come with a risk of depreciation. Where instead of the house gaining value or staying the same, it decreases; which leaves a person in high chance of losing money when selling, or foreclosure.

A few more factors to consider are: how long will you be staying and how fast pricing and rentals rise. According to the New York Times, if a person stays in their home for six years buying is better. It will cost ten thousand four hundred and sixty dollars less than renting; which is an average savings of almost two thousand dollars each year.  I think this article does a great job reporting all of the facts that a person must consider before deciding to buy or rent.

I’ve read and heard from numerous sources that this is one of the biggest decisions that a person will make in their lives. So with that being said; I believe that this decision is strictly an individualized choice that the person/persons have to make. Each must take into consideration their own personal situation and financial factors to come to the right conclusion. And if there is anyone else at this point in their life trying to make the right decision, good luck!