Should you rent a place someone else owns or buy your own home? Whether you are young and just starting your adult life or are looking to downsize after many years, you may be weighing the pros and cons about where to live.
We like winners and we like it when there is a clear favorite. For years, experts have favored one or the other and offered calculators to help you figure out which is best. While crunching the numbers is important, now an expert is more likely to also ask you to consider what makes sense for your lifestyle and wellbeing. Some people find that one option is cheaper but because of their life goals, they may not take the cheaper option.
The price you pay for a home is one of the main factors, but you should also consider factors like:
Lifestyle: When you buy or rent because it is what you are “supposed” to do or because it is a financially sound decision, you may forget that once the papers are signed, you must live everyday life in the residence you chose. You need to live where you can be productive and comfortable and only you know what kind of dwelling allow you the freedom to live life on your terms.
Long-term goals: Anyone can buy a home and find that they can no longer live there for a variety of reasons. But if you buy a home knowing that you plan to move soon, you may have expended money and effort you could have used elsewhere. Conversely, if you stay in the same area, you could find that after years of renting you might have been better off building equity as an owner.
This is the kind of decision that requires clarity and not following the crowd. If you want help with your financial planning and you are in the Washington, DC area or its suburbs consider Clarity Financial Planning,.