Buy or Rent

Affording a house is one of the biggest decisions you’ll make in your life, so it’s important you get it right.
If you’re renting, the challenge is deciding if you should buy a home or invest in rental property.
If you’re buying, the challenge is deciding what type of home you want and where to buy.
Here are some things to think about when deciding between buying and renting:
Location. This is probably the most important consideration. Housing prices vary dramatically from city to city. And locations within cities have very different advantages. For example, if you’re purchasing a home near a city center, particularly in a small or midsize city, there’s a good chance that home will go up in value.
If you’re buying a home in a faraway suburb, it may or may not be a good investment.
Affordability. Buying real estate is a major investment, and it’s very likely the biggest purchase you’ll make in your life. You want to make sure you can afford the monthly payments on a home, whether you’re renting or buying.
Mortgage rates. Interest rates have fluctuated dramatically over the past several years. So if you’re planning to buy, it’s wise to shop around for the best mortgage rate.
Outdated rules. The rules about when to rent and buy have changed dramatically, and today’s reality is much different than it was 10 or 20 years ago. For example, if you rent and don’t plan to move until your landlord gets out of the market, you may be stuck for too long. On the other hand, if you buy a house and need to move before your mortgage is paid off, you’ll be saddled with a mortgage that you bought with somebody else’s money.
Rent vs. ownership. Should you buy or rent? People often buy homes thinking they’ll rent them out when they decide to move. But in reality, renting often makes more sense. If you rent, you will not be as obligated to maintain the home.