Should You Keep Paying Rent or Buy a House?

How do you decide whether it is better for you to rent or buy a house?

Knowing when to make the transition from renting to owning can be overwhelming. It is a huge decision with a long-term effect on our lives. It is a decision with many factors to consider. And one that only you can make.

It is your life and your decision

There are plenty of articles to be found telling you that one way is better than the other. There are mathematical formulas and calculators that contribute to those conclusions. There is tremendous value in considering the numbers when looking at whether you want to rent or buy a house.

However, there are some things to be taken into account that are just as consequential as the numbers. In fact, some considerations need to be taken into account before the numbers and statistics matter at all.

Examine Your Motivations

How will renting help or hinder your ability to achieve your goals? Will homeownership hold you back in enjoying a wanderer life? Or will it make room for your growing family?

Don’t listen to the hype. Renting is not “throwing money away” if it is getting you where you want to go in your own life.

Don’t buy on a whim. What would be your reasons high-stress considering buying? What would it mean for you? How would it help or hinder your journey toward your life purpose?

Don’t buy as a status symbol. Are feeling left behind or pressured by family, friends or our culture to buy? Are you wanting to buy because everyone else is or says you should?

Don’t buy strictly buy a house strictly as an “investment”. Buying a house is not an always an investment. Unless you aim to become a landlord and rent the place to tenants, you should be ready to stay in place.

If you are not ready to settle in one place, buying a house would not be an investment.If you sell within 2-3 years of buying, you are not likely to see any gain. You may, in fact, have to take a loss.

Take a Financial Snapshot Before You Rent or Buy a House

Second, get a solid grasp of your finances. This is a vital step in deciding on your home.

Don’t buy if you are unsure of your financial future. If your employment is ‘ify’ or you are unsatisfied with it. You should consider getting settled first.

Being without work, underemployed or changing jobs creates a high stress level.Consider that you may choose to or need to relocate in order to stabilize your situation. Being a homeowner would deeply complicate things for you in that situation.

Buying a home is a big undertaking in and of itself. Don’t add fuel to your fire.

Consider your budget in the long term. It’s essential to be sure that your decision to buy does not interfere with other needs or goals you have.

Will owning a home allow you enough room to save for retirement? Whether you rent or buy a house, be decisive about what you sacrifice and what you value.

Most important remember this is a decision that is yours and yours alone. Don’t buy for any reason other than your own well thought out one.