Should I Buy or Rent?

If you’re interested in taking the leap from renting to buying, ask yourself these questions.

Learn if it is best to rent or buy.

First ask yourself these questions:

Can you afford the upfront and ongoing costs?
Make sure your budget can handle the down payment and closing costs, plus the ongoing expenses of maintaining a home, paying property taxes and more.

How long will you live in the home?
General recommendations are to buy a home with the view of living there for at least five years to make those upfront expenses worth it.

Are you emotionally ready?
Homeownership goes beyond the tangible. It’s a source of pride and stability for owners, as well as a huge responsibility and a sign of settling down.

Consider some of the basic pros and cons of renting versus buying to gauge where you’re at:

Pros & Cons of Renting

  • PRO: Flexibility. There’s less hassle if you want to move.
  • PRO: Fewer costs. Down payment, closing costs, taxes, repairs and maintenance all add up.
  • PRO: Less responsibility. If the heating breaks or faucet leaks, it’s someone else’s problem.

  • CON: No control. You probably can’t paint walls or make changes to the space.
  • CON: No equity. Your rent doesn’t go toward an investment.
  • CON: Rent increases. Your rent will continue to rise year after year.

Pros & Cons of Buying

  • PRO: Tax benefits. You may be able to deduct your mortgage interest from your taxes.
  • PRO: Equity. The money you pay toward your mortgage is ideally recoupable.
  • PRO: Ownership. You get the pride, stability and freedom of owning your property.

  • CON: Extra costs. Making repairs, paying property taxes and more are part of home ownership.
  • CON: Less flexible. There are more steps to undertake when you’re ready to move.
  • CON: Your time. Maintaining a home will take up a lot of your free time.

Rent vs. Buy Calculator

Crunch the numbers with our calculator to get a customized, quantitative report to help you decide whether you should rent or buy a house.

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