Should I rent or buy?

One of the most common questions I hear is, "Should I rent or buy a home?" The answer depends on your financial situation, lifestyle, and long-term goals. Let’s break it down.

The Case for Renting

Renting can be a smart option if:

• You're not ready to commit – If you plan to move within the next couple of years, renting offers flexibility.
• You want lower upfront costs – Buying a home requires a down payment, closing costs, and maintenance expenses, while renting typically only requires a security deposit and first month's rent.
• You're not financially ready – If your credit score needs improvement or you’re still saving for a down payment, renting gives you time to build a stronger financial foundation.
  
  

The Case for Buying

Buying can be a great choice if:

• You’re ready to build equity – With each mortgage payment, you’re investing in your own property rather than paying a landlord.
• You want stability – Homeownership offers a sense of permanence and control over your living space. Even though a mortgage is a long-term commitment, you can always sell your home if your plans change.
• You want to fix your housing costs – Rent can increase over time, but a fixed-rate mortgage provides predictable payments.
• Home maintenance concerns can be managed – Unlike renting, you are responsible for upkeep, but a home warranty can help cover unexpected repairs and provide peace of mind.
• The cost of waiting – The longer you wait to buy, the more you could pay in the future due to rising home prices and interest rates. Additionally, while you rent, you’re missing out on home appreciation and equity growth.
  
  

What is the Cost of Waiting?

Many people put off buying because they want to save more money or wait for better market conditions. But waiting can actually cost you thousands of dollars over time. Here’s why:
✅ Home prices tend to rise – If property values increase, you’ll pay more for the same home later.
✅ Interest rates fluctuate – Even a small increase in mortgage rates can significantly impact your monthly payment.
✅ You miss out on building equity – While you rent, your landlord builds wealth instead of you.

For example, if home prices rise by 5% in a year, a $300,000 home could cost $15,000 more just by waiting. Add in potential interest rate hikes, and your monthly payment could increase substantially. According to the Federal Reserve Economic Data (FRED), U.S. home prices have historically trended upward over time. You can check the latest data here.

Final Thoughts

There’s no one-size-fits-all answer. If you're unsure whether to rent or buy, I’d be happy to walk through your situation and help you decide what makes the most sense for your future.

Thinking about making a move? Let’s chat!