The Decision to Rent or Buy

Rent or buy? Buy or Rent? It’s a question that leaves many scratching their heads trying to make the right decision. So, which is the right answer? It will depend on the individual situation, but there are factors to consider. The most obvious of considerations is finances. For the majority of people, there will be no more expensive single purchase made during their lifetime than their home. Buying a home cannot be jumped into delicately for this reason. According to a recent msn.com article, it’s important to calculate your after-tax income and compare that to your expected home costs. These costs could include a monthly mortgage, potential HOA fees, maintenance fees and more. However, there may be some tax advantages to home ownership that can also be factored into these calculations. The Consumer Financial Protection Bureau has a monthly payment worksheet that helps potential buyers assess whether their wallets are able to take on the costs of owning a home. While it may seem renting would be cheaper with all that goes into owning a home, that isn’t necessarily the case. According to Trulia.com’s Rent vs. Buy Report, in Houston and the surrounding areas, it is currently 46% cheaper to buy than rent. (Check their rent vs. buy calculator out for a better gauge of your financial situation https://www.trulia.com/rent_vs_buy/) Outside of the financial obligations, there are other responsibilities that need to be considered before making a decision. Owning a home affords the owners a sense of community and belonging. Buying a home gives one an asset and the ability to build equity. It also brings the freedom to truly make...