Buying vs. Renting
Owning real estate is an investment that is likely to help build equity and provide a source of tax advantages. Renting includes a sense of flexibility with little responsibility, other than occasionally dealing with annoying, invasive landlords. So as long as you have strong credit and enough money saved for a small down-payment, buying as opposed will usually be a better decision than renting for anyone looking to settle down somewhere new.
Let's run through the pros and cons of both:
There are many reasons to buy your own home. Some people enjoy living in a house with a backyard and having the freedom to decorate it any way they want. Other people find owning their own home more affordable than paying rent all of the time. Whatever you decide is right for you, there are always benefits to buying a house [or land].
For the most part, homeownership tends to be higher than the overall cost of renting. Homeowner expenses can include property taxes, trash removal, repairs and maintenance, pest control, homeowners insurance, and gardening/tree-trimming. The most considerable throwaway cost is mortgage interest, which can make up nearly all of your monthly payments in the early years of a long-term mortgage. In many cases, it might take around a decade until your monthly payments go toward principal instead of interest.
Circumstances such as the market going up or your neighborhood becoming more affluent can allow owning to be much more advantageous than renting. Either way, it will always be a less precarious option so long as you can afford the monthly payments.
A sense of freedom is the most significant advantage to renting; just make sure you can meet out your lease and not set off the smoke alarm. You can move without penalty at the end of your lease when you rent a home unless your landlord decides to sell the property or turn an apartment complex into condos.
While it’s true you aren’t necessarily building equity with monthly rent payments, you are still spending money on somewhere to live, which will cost something no matter what. (See HOA for homeowners). Another positive of renting is knowing precisely what you’re going to pay for housing each month. In contrast, ownership costs can sometimes go up and down depending on the month, especially if essential renovations are needed.
A big downside of renting is facing unpredictable rent increases each time your lease is up. You might need to move every 1-2 years if continuously choosing to rent. Mortgages often offer fewer surprises.