Torn Between Renting or Buying a Home?

The American dream was always a nice home with a white picket fence. However, that is no longer the dream. More and more people are content renting instead of buying a home. That being said, there are many benefits to becoming a homeowner. Only you (and your family) can decide what is best. 

Here are some of the benefits of renting.

It leads to flexibility. You are only stuck in one place for as long as your lease is. In fact, some people choose to rent a place monthly in order to be able to pick up and move whenever they feel like it! 

The most common leases are year-long ones, though you may be able to find a lease that lasts for three or five years. That being said, you don't have to move when your lease is up. You can sign a new one and continue to live in your home. You could also decide to move, if you need a bigger place when you have children. You may also decide to look for something that may be a little more affordable, if you are struggling to pay the rent.

You won't have to worry about maintenance and repairs. When you are renting, you only have to keep the place clean. If something breaks, you don't have to worry about it. You just have to call your landlord. He or she will be the one dealing with any broken appliances, water leaks, and other things that may happen. 

This means that your monthly expenses will stay about the same. Your lease lets you know exactly how much money you will have to pay every month. Monthly leases won't change. 

You won't have surprises like dealing with fixing anything. Even if the water leak costs a few hundred dollars to fix, that is not your responsibility. This can make it much more affordable to rent a home, over buying one.

Here are some of the benefits of buying a home.

Many people find great pride in owning their own homes. It is really nice knowing that you have your own place to call home.

You don't have to worry about landlords. If you are renting, you are going to be stuck dealing with landlords. Though there are great ones out there, there are plenty that can be a nightmare to deal with. You may even have to worry about them changing the rules and even kicking you out at any point. When you own your own home, you don't have to worry about any of that. 

Buying a home is a great investment. In fact, if you keep your home for several years, you may be able to sell it for more than you bought it for.

It also helps to build equity. As you pay your mortgage, you will own part of your home "free and clear." This is equity. You can then use this money if you ever need some extra money to fix up your home, buy a car, or do something else.

So, how do you know what you should do? 

There are many factors that go into this decision, and it is not one that you should take lightly. 

In fact, you really need to think about the following things:

Your lifestyle. There are many people who don't want to buy a home until they get married. However, they don't want to live at home until they, so they find a nice apartment and move out on their own (or with a few friends). 

That being said, you don't need to buy a home when you get married. You may not want the hassle of owning a home. You may want to be able to pick up and move whenever it suits you, without having to figure out what you are going to do with your home. 

You may even decide that you want to rent to save some money. Instead of buying a home, you can use the extra money and save it for a rainy day. You could also go on fancy vacations, or you may just want a little extra money to splurge because you can!

Your financial situation. You may not have the money necessary to buy a home at this stage in your life. It takes a significant down payment to buy a home, and you might not have enough money saved up. 

Renting can also be cheaper, and that might work out better for you, especially if you are just starting out. When you get older and have a fixed income, it might make more sense financially to rent instead of continuing to live in your own home.

Your personal goals. Whether you buy or rent may depend on what you want your life to be. You may have a goal to own a home by a certain age. Your goal may be to travel the world and live abroad. You may want to rent month-to-month so that you can go wherever the wind takes you! Settling in one place might not be your dream.

Trying to figure out whether you want to rent or buy your own home is rather personal. You have to decide what you can afford financially, as well as what your goals are. If you want to see the world and go wherever you aren't going to want to have a home that keeps you in one place! Others prefer the stability that comes with homeownership.

Previously, published on Medium and/or Newsbreak.