Rent or Buy a Home?

We’ve lived on our own a few years, and we’ve accumulated a lot of stuff. The living room has become an obstacle course, the cabinets in that tiny kitchen are overflowing, and the closet are piling up with clothes.

After trying to find a place to put our new lamp, we decide to move to a bigger place, but should ww rent or buy a home? We probably think of owing our home. Most people assume it’s in their best interest to buy a home instead of paying rent every month. Although that’s true in many cases, continuing to rent could be right for us.

Before making a decision, consider the following:

Renting is better:

* If we don’t know if we’ll be living in the same town next year. We don’t want to sell a home before its value has appreciated enough to cover the real estate commissions and closing costs.

* If we are unable to afford unexpected maintenance costs or property tax increases.

* If the landlord generally maintains the home or apartment at no extra cost to us.

* If we can move when the lease expires and not worry about selling the property.

Buying is better:

* If we want to start building equity in our property, which is generally a better choice than paying a landlord every month. Buying a home is usually a secure investment because home prices usually don’t decrease.

* If we go with a fixed-rate mortgage. With that option, our monthly payments will stay the same for the term we select (which can range from one to ten years). Rent often increases every year.

* If we want to decorate and remodel our space to match our interests and desires.