Rent Vs. Buy Costs
What Makes the Most Sense for You?
Rent vs. buy is a common conundrum. From buying your first home to relocation for a relatively short or temporary period for work – Renting or buying is often weighed heavily before a decision is made! Many expenses and factors go into making the final choice.
Rent Vs. Buy Considerations
- Length of time
- Credit / Finances
- Interest Rates
LendingTree has recently released an updated version of their Rent vs. Buy Calculator and it is a great way to help calculate and decide! Factoring in everything from interest rates to rental insurance, the Lending Tree calculator is a good way to look at time vs. costs vs. market information to help guide your decision!
How to Decide – The Questions to Ask Yourself
Length of time
How long do you plan to stay?
What happens if you have to stay longer or want to leave sooner?
Are you relocating for work or buying your first home?
Not just for now, but for the future – If kids or marriage are on the horizon, is this the right neighborhood?
Are you close to work? Do you LIKE your job to plan around it?
Is this neighborhood up and coming, safe and nice – Or on the rocks with a questionable future?
Credit / Finances
This may be one of the bigger factors unfortunately.. Do you have credit for a loan?
Do you have savings for a downpayment?
What about savings to repair or remodel, etc?
What about opportunity costs? Are you giving things up to purchase instead of rent?
Are interest rates high? You may be able to justify holding off a bit…
Are rates low and predicted to raise? You may want to get yourself a REALTOR stat!
Is the area of town you want better for renting and not buying?
Perhaps there are a ton of houses for sale! Availability in your budget is incredibly important.