How To- Choose: Rent or Buy?

Should you rent or buy the place you call home?

This is a very personal decision and one that may change depending on where you are in your life.

The first thing you should take into consideration is that purchasing a home is rarely an investment and is most definitely NOT a requirement for achieving “the American dream”.

You should rent if:
– you expect to move in the next five years
– you do not have a credit score that will allow you borrow the money for a mortgage
– you have not saved a 20% down payment
– you do not enjoy mowing, snow removal, maintenance, etc.
– you want to be near other people
– your monthly rent will be less than the combined total of a mortgage, insurance, taxes, HOA fees, and maintenance costs associated with home ownership

You should buy a house if:
– your mortgage, including insurance, taxes, and HOA fees (if applicable) will be less than the cost of rent
– you really want to personalize your living space
– you want to be able to landscape your yard as you wish, plant a garden or flowers, or add decorative details
-you want multiple pets and/or animals a landlord typically will not allow
– you want privacy and/or to be away from others


This is by no means a comprehensive list. To consider all the factors in your life take out a piece of paper or create an electronic document. One one side list all the reasons for buying. On the other list all the reasons for renting. One side will most likely be a lot longer or more compelling than the other. If you are at all unsure, it is generally best to rent until you have decided.