Your lifestyle and stage of life often influence where you live. Sometimes obstacles like financial constraints or competing with multiple offers can stand in the way of homeownership, while for others, renting is the ideal option.
If you have the freedom to choose between renting or buying your house you’re probably feeling the pressure that comes with making such a huge decision.
To help you along, here are some things to keep in mind when solving the dilemma:
1. What’s your financial situation right now?
Let’s face it, both renting and owning your home are expensive. If you’re buying a home you’ll need a down payment, closing costs, and ongoing mortgage payments while renting typically requires a security deposit and first month's rent and monthly payments. That’s before we even think about other regular costs like utilities, homeowners or rental insurance, property taxes and maintenance.
Before you make a decision, take a good look at your finances and think carefully about what you can realistically afford right now.
2. What are your future plans?
You don’t need to have your ten year plan mapped out but it’s a good idea to look ahead and consider where you want to be. Do you see yourself staying in the same place or do you want to have the freedom to move around? Do you think your family circumstances might change and you might need more space? It’s worth thinking about whether the decision you make now would still work for you in a few years’ time.?
3. What do the real estate and rental markets look like??
Is there a lot of competition for rental properties in your chosen area? How about demand for houses for sale? Looking into demand and supply in the market could give you a sense of what’s realistically available to you right now.?
4. Do you want to put your own stamp on your home?
There are usually limitations to what you can do to personalize a rental, whereas you have more freedom to decorate a home you own. It’s not a big deal for everyone, but if being able to customize your place is a priority for you then you might want to factor it into your decision.?
5. What suits your lifestyle best?
Your perfect home should allow you to enjoy life outside of it too. That means your lifestyle should be a big part of your decision to rent or buy. Your preference for traveling or moving frequently, your desire to be near certain amenities or close to friends or family are just some of the factors which could influence your decision.?
6. What do you want and what do you need??
You might find it useful to write a list of the things it would be nice to have and things you absolutely wouldn’t want to live without. If features like a large yard, free parking or a pool are essential to you then keep those in mind when making your choice. You might find that they narrow your search.?
7. Can anyone help make the choice?
You are the only one who can choose between renting or buying your home, but if you’re looking for guidance on certain points, there are services out there that might be useful to you:?
Financial advisors can provide advice on your overall financial situation and help you understand the costs and benefits of renting versus buying. They can also help you create a financial plan that takes into account your long-term goals and priorities.?
Mortgage brokers can provide information on mortgage rates, pre-approval, and financing options. They can help you understand how much you can afford and what type of mortgage might be best for your situation. Find top-rated mortgage brokers on Trustpilot here.?
Real estate agents can help you understand the local housing market and maybe be able to provide insight into the pros and cons of buying versus renting in your desired area. They can also help you navigate the home-buying process and find properties that meet your needs and budget. Check out real estate agent reviews here.?
The bottom line is whether should rent or buy a house is a completely personal decision and only you know what will have the most positive impact on your life. But by thinking about where you are now and where you want to be, one day down the line you can sit back in your (owned or rented) home, knowing that you gave the decision the consideration it deserved.
Trustpilot is a review platform that is open to all. The companies and profile pages referenced in this article are provided for informational purposes only and are not recommended, endorsed by, or representative of the views of Trustpilot. The Trustpilot companies linked in this post are expected to abide by?Trustpilot’s Guidelines, but have not been reviewed for compliance.
