Rent or Buy: Which Option is Right for You?
August 09, 2022
August 09, 2022
Deciding whether to rent or buy depends on your financial situation, future plans and lifestyle. Both options have benefits that you need to carefully consider before making your decision.
Buying a home may make sense if you plan to stay in your home for at least five to seven years. Here are some of the many benefits of owning a home.
This does, however, come with the added responsibility to keep up with maintenance and repairs needed to protect your investment.
Homeowners may also be eligible for certain tax benefits as well, including tax deductions on their mortgage interest and property taxes.
Compared to owning, renting provides a more flexible option with minimal risk. More than one-third of America's families rent today, and there are many benefits to renting.
Renting may also make sense if you are looking to move into a more expensive market. For instance, renting is advantageous if you want to live in the city or other high-cost area where it's more expensive to buy than rent.
Renting is also a great option if you like the idea of having someone else handle larger home maintenance issues. Depending on your lease terms, your landlord is typically responsible for most home maintenance and repairs.
Keep in mind that this arrangement also means you will rely on your property manager to complete any needed repairs or building maintenance.
Still unsure which path is right for you? Use our Rent vs. Buy Calculator to compare costs or explore our resources for renting with the goal of buying.
If you are interested in buying a home but can’t do it now, a housing counselor can also help you through this decision and get you on the road to homeownership.
For more information about homeownership and renter resources, visit My Home by Freddie Mac®.