Difference: Renting vs. Buying
Traditionally, becoming a homeowner has been referred to as “The American Dream.” Additionally, many experts agree that it’s an excellent investment. However, homeownership is not the right decision for everyone.
A 2010 survey by the National Apartment Association found that 76% of renters had no plans to buy a home. This was a powerful statistic (and remains so) since that particular survey was taken in an environment of low mortgage loan rates and more affordable housing.
Whether you choose to buy or rent your home depends upon your life situation and personal preferences, as well as the bottom line. Ask yourself the following questions as a guide to determine whether homeownership is right for you:
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These are all very real and very valid concerns. If you’re not interested in or ready to buy a home – either mentally or financially – then honor your individual needs and wait. While some people consider renting to be an act of “throwing money away,” it isn’t. Your rental payments cover the basic human need for housing without the lifestyle changes that many simply don’t want or have time for.
If you’ve made the decision that you do want to buy a home, your next step is deciding how much you can comfortably afford. Check out this calculator to get an estimate.