Renting vs Buying

Everyone likes to drill the difference between renting and buying to money. Money, money, money. But really, that has little to do with the ultimate decision of switching over. If you read over the New York Times Rent vs Buy article, you’ll notice how their home calculator shows you that it’s more beneficial to own a home after 5 years. Renting loses its intrinsic value after 5 years because of monthly costs and value changes. But is money really the only reason you decided to rent a home in the middle of the city? Is money the only reason you decided to move out to a quiet neighborhood on the edge of town.

The real answer to deciding whether to buy or rent a home lies more with personal preferences and style of living. Not everyone is ready to leave the excitement and entertainment of the city for a secluded retreat near the woods. Some may want stability over their home – which renting doesn’t offer. So the answer lies more with discovering who you are and what you want.

The city is geared toward a diverse culture of nightlife and entertainment. Small restaurants and bars are within walking distance, and there’s always some activity to be participating in. Within suburbia, you’ll find safer features with green space and free parking. You’ll have to drive to work, but whichever neighborhood you choose will be more family friendly than a home in the city.

Generally, apartment complexes and condominiums offer a greater number and variety of amenities than buying a home. If having an Olympic-sized swimming pool, tennis court, and exercise room is vital to your style of living, then renting is probably more of your choice. On the other hand, owning a property gives you the freedom to customize your living and outdoor areas.

Another feature you need to consider is your living preference. Some occupations, especially those of military personnel, have to relocate repeatedly and need the flexibility to move on a moment’s notice. Renting will give you the freedom to pack up your stuff and move at anytime, which can be helpful if you lose your job or separate from a loved one. And the financial impact will be less than having to sell a home very quickly. However, the stability of owning your home means you never have to worry about a landlord kicking you out or making up new rules.

Purchasing a home allows you to choose an architectural style and floor plan that suits your desires, but at the cost of maintaining it. If there’s a leaking roof or clogged toilet, you have to fix it, while vice-versa, if you’re renting, one call to the landlord will fix everything. But with renting, you don’t get to choose the exterior and interior feautres of your home.

When it comes down to renting or buying, it’s not just about money … as you can see. Choosing between the two is based on personal preference and which outweighs the other. And if you have the money to pay the mortgage/rent every month, what does money matter? Your living situation should make you happy, not keep you worrying about finances.