Should I Buy or Rent?

First ask yourself these questions:

Can you afford the upfront and ongoing costs?
Make sure your budget can handle the down payment and closing costs, plus the ongoing expenses of maintaining a home, paying property taxes and more. If you need extra help making a down payment on a home, you may want to consider exploring down payment assistance programs that are available in your area.

How long will you live in the home?
General recommendations are to buy a home with the view of living there for at least five years to make those upfront expenses worth it.

Are you emotionally ready?
Homeownership goes beyond the tangible. It’s a source of pride and stability for owners, as well as a huge responsibility and a sign of settling down.

Consider some of the basic pros and cons of renting versus buying to gauge where you’re at:

Pros & Cons of Renting

• PRO: Flexibility. There’s less hassle if you want to move.
• PRO: Fewer costs. Down payment, closing costs, taxes, repairs and maintenance all add up.
• PRO: Less responsibility. If the heating breaks or faucet leaks, it’s someone else’s problem.
  
  
• CON: No control. You probably can’t paint walls or make changes to the space.
• CON: No equity. Your rent doesn’t go toward an investment.
• CON: Rent increases. Your rent will continue to rise year after year.

Pros & Cons of Buying

• PRO: Tax benefits. You may be able to deduct your mortgage interest from your taxes.
• PRO: Equity. The money you pay toward your mortgage is ideally recoupable.
• PRO: Ownership. You get the pride, stability and freedom of owning your property.
  
  
• CON: Extra costs. Making repairs, paying property taxes and more are part of home ownership.
• CON: Less flexible. There are more steps to undertake when you’re ready to move.
• CON: Your time. Maintaining a home will take up a lot of your free time.