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When You should Rent and When to Buy
When does it make sense to rent or to own a home?
General guide on whether to buy or rent:
Photo by Roberto Nickson
If the real estate market has been rising for years: Rent.
-It’s a terrible time to buy a home—if real estate prices have been climbing for years.
Don’t buy in a hot market.
If you plan to stay in the same place for 10 years: Buy.
-There’s no reason to rent if you're planting your roots for a long time.
If you plan to be mobile: Rent.
-People who own their homes—give up mobility. If you want the option to move every couple years—rent.
If the economy just had a downturn: Buy.
-Typically the real estate market gets hotter after a downturn. Which means—you can live in the new home for awhile—and possible sell at profit later.
If you want to change your living space: Buy.
-Buying allows you to configure your home layout any way you please. No need to worry about landlords, or HOA.
If getting the most real estate for your money: Rent.
-You will typically get more money renting than buying. It’s easier to live in a much bigger house renting—than owning. And the landlord takes care of the maintenance.
If the real estate market is stagnant or declining: Buy.
-It’s hard to lose when buying real estate low, as it generally appreciates.
If you can get a discount, and the market is appreciating: Buy.
-As long as you live in a home for 2 of 5 years,—you can sell for a profit tax-free ($250k single, $500k married).
If you care about amenities—and being in the center of attractions: Rent.
-Renting allows you to live in city centers—close to nightlife. The amenities are top notch such as high rise view—and rooftop pools.
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