Is Buying a Home or Renting One Right for You?

Everyone needs somewhere to live, and for huge numbers of people around the world, the choice of where to live mostly comes down to deciding whether or not to rent a property, or to work towards buying one.

Fortunately, it’s quite easy to find good mortgage advice these days, and there are many different avenues forward for aspiring homeowners.

Ultimately, though, some people will have reasons to rent a property rather than buy one, and vice versa.

So, is buying a home or renting one right for you? Here are some things to consider.

Do you have a location in mind where you want to put down roots?

Buying a home is naturally more of a commitment than renting one, and, although it is possible to sell or remortgage your home, it does feel like significantly more of a firm decision to live in a particular location over a prolonged period of time.

One of the key things to consider when it comes to the question of whether to buy will to rent a home, then, is whether or not you have a location in mind where you actually want to put down roots.

If your family and many of your friends live in a particular area, and especially if you have a personal history in that area, it may certainly make more sense to buy.

On the other hand, if you’re working far away from most of your loved ones, and don’t feel any particular attachment to the area you find yourself in, there is a good chance that purchasing a home there will not be the ideal path forward.

Does it make more financial sense for you to buy or rent at the moment?

Financial considerations are always going to factor in significantly when it comes to the question of whether to buy or rent a home.

On the one hand, it may be that you need more savings and a better job to feel comfortable about buying a home. On the other hand, it may be that you could benefit significantly from getting a mortgage on a home, and then making monthly payments to pay off your mortgage, as opposed to paying rent to a landlord.

Do you currently have to reside in an area where property prices are excessive?

In many places, people are drawn to live in expensive cities – or at least very close to them – for job-related reasons and career prospects as a whole.

If you have to reside in one of these areas for the time being, it may be that renting is simply a much more affordable and cost-effective option, and that purchasing a property would be extortionately expensive, and would take you a long time to pay off and balance financially.

If, on the other hand, you are able to live somewhere more affordable while still excelling in your career, homeownership may be a significantly better idea than it otherwise would.