There are many benefits of home ownership, but sometimes a better choice is to rent – even if just to allow you some time to weigh your options.
When you decide to rent:
You are not responsible for the cost of repairs and maintenance.
You have less of an upfront investment (usually a reasonable security deposit or 1 month rent).
After your lease expires, you are free to vacate the property without additional expenses.
You may even get a security deposit back (as long as the property is still in good shape) which can help offset the cost of moving.
When you decide to purchase a home:
You have more control over the amount of your housing payment.
You are able to build equity in your home and add to your overall net worth.
You have an appreciable asset, along with pride of ownership.
Don’t forget the possible tax benefit for interest and property taxes.
If you have just moved to an unfamiliar area, or are unsure of the stability of your job, you may consider renting for a period of time to lessen your stress. Once you are able to maintain consistent savings for a down payment and can meet other savings goals (such as retirement and an emergency fund) the odds may be in your favor to consider home ownership.
By: Ross G. Allen, CFP ®