Renting or Buying: How to Figure Out the Best Finances for You

Renting or Buying: How to Figure Out the Best Finances for You

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When it comes to finding a place to live, deciding whether you want to rent or buy can be half the battle. There are distinct advantages to both options, and no one situation is right for every individual. If you are wondering which move makes the most financial sense, however, here are seven factors you will definitely want to consider.

1. Monthly Payment
When considering if you can afford a certain property, the monthly payment is probably the main number you will look at. Thankfully, homes for sale and homes for rent can be found in all price ranges, so you should have plenty of options for both rentals and homes for sale.

2. Moving In Costs
When moving into a rental, you typically have to pay first and last months’ rent, and a substantial deposit. According to Faber & Company Inc when moving into a home, you typically have closing costs. Both are large amounts that should not be ignored. Look over what you think you can afford.

3. Utilities
When renting, some of your utilities may be included in the price. This can make a big difference when you are figuring out your payment. When you purchase a home, however, you are responsible for all of the utilities yourself.

4. Maintenance and Repairs
Whether you own your home or rent, your home will eventually need routine maintenance and repairs. If you rent, your landlord should take care of these expenses for you. If you own your own home, they will be your responsibility.

5. Flexibility
In addition to the cost of living in your new home, if you plan to move before too long, you’ll also need to consider the cost of moving out. If you rent, you will have greater flexibility. If you own your home, you may have problems selling when you need to. 

6. Equity
One of the great parts about owning your home is that you get to keep some of the money you put into it in the form of equity. Of course, if home values fluctuate, your equity could fluctuate as well. You’ll want to think about avoiding foreclosure in Edmonton or in New York. The market is something not everyone considers before making a decision.

7. Property Taxes
With homeownership, you have property taxes. While property taxes generally aren’t a huge amount, they should definitely be added into your costs when you are considering which option will be the best one for you. 

Renting and buying are both fantastic options, so you’ll have to do the math to decide which one is best for you. These seven items will give you some idea of what costs you’ll want to be sure to factor into your decision.

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Categories: Home Buying

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