Buy vs Rent What’s the Right Choice for You?

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A list of considerations when deciding whether you should buy or rent: Cost: Buying a property usually requires a substantial investment of cash for a down payment, closing costs and lender payments. You may also need to buy appliances and other furnishings. Additional Costs: When buying, you are likely to have more amenities and more space, but at additional costs. You’ll likely be responsible for maintaining the yard, heating and cooling, and perhaps paying homeowners association dues. Flexibility: If you’re not interested in staying somewhere for more than a year or two, you may want to think about renting. The costs you encounter to sell a home (real estate agent fees, closing costs, costs to market) may outweigh the property’s value or selling price. Not Ready to Commit: What are the chances that your life and needs will change in the near future? Is your family growing, or do you have children who are getting ready to leave for college? Return on Investment: With buying, you run the risk of making a bad investment. A change in the neighborhood or the economy can affect the value of your property. The shorter the period of ownership on a property and renovation, the more likely you will end up on the losing side of an investment. Maintenance Responsibility: Property ownership requires being responsible for repairs, being available when repairs need to be made and paying for them. Lifestyle Factors: Can you find rental properties in the neighborhood you would like to live in, or is buying your only option? Which type is more affordable? Is one closer to your workplace or a school? Taxes: You will pay different taxes depending on a rental or a purchase. Peace of Mind: Ultimately, you need to decide if you’ll be more satisfied and comfortable owning a property or renting.