Rent vs. Buy: What’s Right for You?

With the surge in the housing market, I’m sure you’re asking yourself - should you keep renting, or is it time to buy? There’s no doubt that there are many perks to becoming a homeowner, including building equity and having more control over your home. But sometimes renting might be the best move for you. 

Read on for key questions to consider if you’re considering becoming a homeowner. 

1. Are you financially ready to become a homeowner?

When buying a home, you must consider the relevant aspects of your financial situation. Do you have a budget? Do you have any money saved for a down payment? How about a house emergency fund? Knowing what you can afford and your financial health is a great start when considering homeownership. 

Consider what the lender could approve for you and what you can afford. Owning a home means nothing if it overextends you financially. Plus, a lower down payment could leave you at a disadvantage in terms of rates or put you at a disadvantage when putting in an offer on a home. 

For more information on budgeting, you can check out my blog, “Homebuying with Guro: Know What You Can Afford!” here.

2. How long will you stay in your home?

The longevity of homeownership is key to building equity. So if you don’t plan on staying in one place for long, homeownership may not be for you. Renting offers flexibility and more freedom, while homeownership is a commitment that takes time and care.

Also, owning a home involves several one-time expenses such as broker fees, mortgage origination fees, and closing costs. The longer you stay in your home, the more time you have to spread those costs out and for your home to rise in value. 

Simply put - renting is better if you’re on the move, while homeownership is better if you plan to stay in one place for a few years.

3. Are you ready for the commitment of owning a home?

Let’s be honest - homeownership is a commitment. You don’t have to worry about keeping the lawn trim, winterizing, or even essential maintenance when renting. Some people live for the responsibility that comes with owning a home. Mowing the lawn? They’re here for it. Trimming the edges? There’s nothing better in the world. But if home maintenance and improvements aren’t in your wheelhouse, maybe homeownership isn’t right for you.