In terms of major life investments, deciding on a home ranks amongst the top. When weighing your options, many factors come into play, namely the decision on renting vs. buying. Many argue the fact that buying a house is too big of an investment, while other rebut that renting is a waste of money. If you’re fumbling between the two options, consider these factors before you come to a conclusive decision.
How Long Do You Plan to Stay?
Asking yourself this questions is vital to making a wise financial choice. In a booming market, it’s likely that you’ll need to own your home for at least two years before purchasing becomes the better option. But keep in mind that the housing market across the country is not always at its peak, and it’s likely to fluctuate over the course of a few years. Carrying debt is always a risk, so if you’re planning to stay in an area for only a year or two, renting is your best bet. If you’re looking to stay in an area for a lengthy amount of time, but are fearful of a major commitment, know that buying a house will pay off in the long run. You won’t have the uncertainty of rent fluctuation, nor will you need to change or update your lease every 12 months.
Have You Considered All Costs?
Never assume that the ticket price on a house is end-all cost. There are always hidden costs associated with both renting and buying a house. While it’s vital to compare mortgage, and rent price, you must also factor in property tax, homeowner’s insurance, renter’s insurance, maintenance budgets, and more. Consider making a spreadsheet of potential costs and your available budget. This helps you clearly define what you can afford.
What Are Your Financial, Career, and Family Goals?
Ultimately, your decision about renting vs. buying a house comes down to your personal goals. Are you planning to settle down and start a family? Do you foresee your career giving you opportunity to travel? Do you want an investment you can reap the benefits of a few years down the line? Buying or renting a house is a huge life decision, so don’t be afraid to take a while to ponder your answers to these questions.
Whether you’re looking to buy or rent a house, Brightstar Realty will help you come to the best decision for your lifestyle. As a full-service real estate broker and property manager, our team knows how to match you with the right market in New Jersey. If you’re in the market for a new home, reach out to our team today.