To Buy or Not to Buy, that is the Question

At some point or another you’re bound to be confronted with the renting vs. buying dilemma. There’s a lot to consider. Which is better financially? Which is your lifestyle better suited to? etc. We’ll go over some of the basics to consider in order for you to come to the best decision.

A question that may seem obvious, but many may not consider is how often do you expect to move in the future? If you think that moving every few years or more is a possibility, then buying a home is not the smartest and most cost efficient choice. Buying and selling a home is not a simple process and there are many costs that come along with it. There are selling commissions, renovations, staging, cleaning and many more expensive and time consuming tasks that come along with selling your home. If you buy and sell too quickly you will often loose money.

When comparing buying and renting you have to fully evaluate your finances. To own a home you must have good financial organizational skills, and experience with budgeting. You must be able to ensure that buying and owning a home is sustainable. There are more then just initial costs to consider. You will have to cover the cost of a monthly mortgage, property taxes, perhaps condo fees, and utilities.

In this respect, if you’re not great at balancing your finances and staying organized renting may suit you better, as rental units often have all inclusive monthly payment, which will take the worries of seasonal utility fluctuations, for example, out of the picture.

Renting also is a better option if you do not want to be inconvenienced by unexpected damages and repairs, as well as the additional time and money that must go into fixing these problems. When renting there is often a landlord who will take care of this unwanted mishaps.

As we have explained buying and owning a home comes with a lot more responsibility and planning then renting but, it is not without vast rewards. When you are renting the money that you are putting into having a home you will not get back. Whereas when buying, its an investment and you may come out the other side with a big profit. Not only does buying a home often make sense financially it comes with more freedom. Owning a home means its completely yours! If you want to make renovations, go for it! If you want to paint the walls in neon tones, your choice! Renting can be constricting in that there are rules dictated, whether or not you can have pets, what kind of utilities you may run, how many people you may have living in your home, and the list goes on.

Even if you have considered all of the above, much of the time it all comes down to the math. Find out whether buying or renting suits your finances. This Rent vs. Buy calculator will crunch your numbers: http://michaelbluejay.com/house/rentvsbuy.html