Renting Versus Buying

Are you looking for a new place to call home but don’t know whether to rent or buy? It can be a difficult decision to make. There are pros and cons to each situation depending on your financial status but regardless of which you ultimately choose its best to explore all your options before making a blind decision.

Renting is an excellent choice for a young couple just trying to get started. There isn’t the long term financial obligation associated with buying a home. In most areas leases are for one year so if you decide to move you don’t have to worry about trying to sell the home. On the other hand renting means that you will be limited on what you can do to the home. For instance your lease might not allow for pets or might limit you on certain décor options.

Buying a home can have certain financial obligations attached to it. However, if you can buy a home that has been foreclosed or is in need of repair and invest some money into fixing it up your return will be higher if you do sell. On the negative side you will need to have a substantial down payment to get approved for a home loan. If your credit is less than average you may have difficulty securing a loan with a low interest rate.  Also if your household grows in the future you may have to upgrade to a larger home that could end up costing you a sizable sum.

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