Reasons to buy a home
Buying a home can be a great investment. If home prices in your area have been rising, buying now can help you stay in a neighborhood that you might otherwise be priced out of in a few years. And even if you don’t end up staying long term, a sharp rise in local property values could mean a sizable profit when you sell. Some indications that buying may be right for you:
You plan to stay in the same place for more than a few years.
You’d be willing to rent out part or all of your home, should your plans or finances change.
You’re eligible for a prime-rate mortgage, with payments you can afford.
You’re willing to put some “sweat equity” into a fixer-upper, allowing you to buy something more affordable. You can increase the home’s value with improvements over time.
Reasons to rent a home
Though owning your own home can offer a sense of security, homeownership has its drawbacks — remember the roof replacement? Getting out of a lease is also much less of an ordeal than selling a house, so if you’re not sure where you’ll be next year, renting can save you some costly headaches. Some indications that renting may be right for you:
You aren’t sure how long you’ll be in the home because of work, changing family circumstances or other reasons.
You won’t be able to afford — or don’t want to bother with — the maintenance or repairs a house may need.
Your finances are variable or likely to change soon, potentially making it difficult to keep up with mortgage payments.