Deciding to Buy or Rent
Buying a home has many advantages, but so does renting. The best choice depends on your life situation.
Here are a few important benefits of homeownership:
- Pride of homeownership. Having a home of your own gives a sense of pride and the freedom to live as you wish. You can have pets and make changes to your home to suit your tastes and lifestyle.
- Homeownership builds wealth. Over time, a home typically appreciates in value, and at the same time you gradually increase your wealth as you pay down your mortgage.
- Stability. With a home purchase, you set down some roots. You may find yourself more settled and committed to connecting with neighbors and improving your community.
The advantages of renting:
- Greater mobility. If you choose to move, it’s much easier when you are renting.
- Monthly costs. Often, the monthly cost of a mortgage, utilities and maintenance is higher than rent – though this isn’t always the case.
- Maintenance and repairs. When you rent, repairs are the landlord’s responsibility. When you own a home, you have to make the repairs yourself or pay someone else to do them.
The following calculator can help you to calculate the trade-off in buying and renting a home: Am I better off renting?