Should You Rent or Own?

Home, sweet home. A white picket fence … that you have to paint. A colorful garden … that you have to weed. A modern kitchen … for the 1960s, that you have to replace. You get the idea. Being a homeowner has its pluses and minuses. The big question always seems to be, should you rent (apartment, house) or should you own (house, condo). The best option is different for every person, but there are points you can consider to help make the right decision for you.

The prevailing opinion seems to be, it’s better to own than to rent. Why? Many say renting is as good as throwing away your money; you pay rent and never see ownership of property. But while that may be true, it’s also true that home ownership has its share of what seems like “throwing away money.” When you consider closing costs, mortgage interest, property taxes, homeowners insurance, and maintenance, you can see owning a home has its share of money you may never see again.

So what should you do? Again, it depends on your specific situation, but here are a few things to consider:

Renting may be the better option if…

• You’re not sure yet where you want to live. With no worries of buying and selling, you can move easily from place to place.
• Your lifestyle (business travel, hobbies, etc.) doesn’t allow much time for maintenance and upkeep.
• You don’t have the time and/or money to fix or renovate as potentially needed.
• You prefer not to deal with property taxes/assessments.
• You don’t want to risk the chance of foreclosure if your employment is unstable, or potential investment losses with market fluctuations.
• You prefer to put the extra money you might save with a lower rent payment into a savings plan.
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Buying may be the better option if…

• You want to invest in something that’s your own. With every monthly mortgage payment, you build equity in your home, and you can tap into this equity if you ever decide to.
• You’re ready for a long-term investment. Despite the recent decline in the housing market, a majority of real estate grows in value over time, making home-buying a good investment.
• You want to benefit from potential mortgage interest and property tax deductions.
• In an emotional sense, you want to start setting roots and cultivate a sense of community.
• You want to be the landlord!

What’s right for you? That all depends on your preferences and your circumstance. Our site has tools to help you determine whether you should rent or buy. And, if you determine that buying a home is in your future, learn more about how Vantage can help!*

Here’s another resource to help you make an informed decision. Good luck!

_{*Mortgages offered through Mortgage Solutions, LLC, a wholly-owned subsidiary of Vantage Credit Union.}