Buying a home is a huge part of the American Dream. Choosing rent vs buy, though, is a major decision that affects your financial health, lifestyle, and personal goals. Whichever option you choose depends entirely on your lifestyle and financial situation. Both require a regular income (so you can afford the payments and associated costs) and may also require a certain degree of effort to maintain.
One of the most important questions to consider when deciding between renting versus buying a home is your timeline. For example, if you’ve just moved to a city, expect a job change soon, or don’t plan to stay in the community long, it may make more sense to rent. Selling a home costs money, and if you sell too soon after buying, it may not be worth it.
Buying and renting each have their own costs to consider – and this can make the difference between becoming a renter or a homeowner. To buy, you’ll need enough money in the bank to afford a down payment and closing costs. How much that will be depends on your home loan, your lender, housing market, and more.
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