Renting or Buying … that is the question

Many factors come in to play when the decision between renting or buying is on the table. Ultimately, deciding what is best for each unique situation falls on the decision maker, but we want to outline a few of the possible scenarios to help explain what the largest purchase (or lack of purchase) could mean.

Price of the Home

The price of the home is a good place to start. Getting this semi-fixed idea of what a potential mortgage would cost on a home will allow for comparison to monthly rental fees for a similar home. This is a base line idea and not concrete, but to start this complex equation of pros and cons a solid starting point would be the price of a potential home. How much would it cost you to rent the same home in the same area? Chance are your mortgage payment is going to be drastically lower.

How long will you live there?

Longer is not always better in this variable. Staying over a certain number of years is advantageous, but it is not a “20 is better than 19 years” scenario, instead it is the idea of making sure that your up-front costs (those which are required to purchase a home, even if they are financed into your loan and are not paid out-of-pocket) are spread out. Selling a home after purchasing within a single year can prove to be costly, but if the plans are to stay 2 or more years then purchasing is a viable, and potentially profitable, option.

What type of mortgage?

Most of these questions are answered along the way, but interest rate, down payment, and term of the loan are all very important factors in weighing out the cost of a short-term moving schedule. Again, longer is not always better. Getting through the first major hurdle of the first year is key in building equity and positioning the home for a profitable sale.


Paid by all, loved by few – taxes are inherent in any decision. These vary from city-to-city, county-to-county, and are always a must-know when making such a huge decision. Location is one of the most sought after attributes in any purchase or rental agreement, so it pays to know what will have to be paid for that particular location.

Maintenance, Fees, and Renovation Costs

This seems to be one of the most negatively spun portions of the rent versus buy decision. Purchasing a home does have certain responsibilities and lack of another’s accountability for major repairs and maintenance, but the reward for doing so is so often left out. Intrinsic, personal satisfaction is also a huge plus. Coupling that with the financial rewards that a new HVAC, roof, or other upgrade to a home and that begins painting a picture for a beautiful decision in home ownership.

Deposits and Down Payments

One or two months rent versus a down payment can seem less frightening, but the costs are not that different. With so many 0% down mortgage options available on the market this hurdle can be overcome easily. Consider the above points and many, many others before continuing that rental same rental cycle. We are always here for you to discuss the possibilities and to help make the right decision. Our goal is not to hard sell anyone into a mortgage, but rather to educate and apply methods that we have gleaned to keep those who have reached out to us for advice happy, even if they decide not to purchase.

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