Beyond the down payment and mortgage rates, the choice between renting or buying a home is a fundamental decision about the life you want to build. It’s about more than just square footage and zip codes. It’s about flexibility, long-term goals, and even emotional security. Before you commit to your next address, consider how your lifestyle, financial priorities, and personal dreams fit into one of the biggest investments you will ever make. Ask yourself these questions to get a better grasp on where your needs lie:
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How long will you stay in this home?
Renting will offer more flexibility if you plan to move within the next few years, while also avoiding the costs associated with buying and selling a home. If you are planning to stay for a while and set down roots, buying is a great option that will hopefully allow you to build equity in your home over time.
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Can you comfortably afford all the costs associated with buying a home?
Buying a home involves more than just a down payment. There are many other upfront fees to consider, like closing costs, home inspections, and potential renovations or repairs. If your budget includes these upfront fees and a reserve for unexpected issues, you're on the right track. Make sure you have an emergency fund saved for the ‘what ifs.’ If you don’t have to use it, great! But you need to be prepared for any issue that may pop-up, like burst pipes or a new roof. It’s always best to be prepared.

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Do you want to customize your space?
Do you have the time, money, and desire to modify your space? And we mean permanently… Command hooks don’t count! If you’re looking to tear down a wall, then it may be time to buy your home. If you’re happy leaving the space as it is, renting works just fine.
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What do you really want in a home?
Take some time to thoughtfully consider where your priorities lie, and if renting or buying will be able to get you closest to that ideal. Do you have a pet? Will the place you rent allow pets, have the space for them, or even a yard? How often will you be home? Do you plan to travel frequently? All these preferences will give you a better idea of what you need! Your habits and your future plans will ultimately decide what a home means to you.
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What is your housing budget?
A good rule of thumb is to spend no more than 30% of your gross (pre-tax) income on your housing. This includes rent or mortgage, utilities, and property taxes. This gives you a clear budget picture. Your financial goals, such as paying off debt or saving for retirement, should also guide your spending.

The Big Picture
As you can see, the choice between renting or buying a home depends on a multitude of factors, from lifestyle to income.
Renting provides a lower-risk, lower-commitment lifestyle, ideal for those who value flexibility over long-term financial control. Customization freedom may be sacrificed, but you gain freedom from unexpected costs of ownership.
Buying invests in finances and the future. While requiring more responsibility, such as managing repairs and dealing with property value changes, it also allows you to build wealth and create a unique space. Do you want a pool? What about a home gym or kitchen remodel? It’s doable! Our Home Equity Lines of Credit is here to help you achieve these dreams.
By taking the time to ask yourself these questions you can make a confident choice that fits your needs and budget; the perfect home is about the life you build within it. No matter what option you choose, just make sure it’s the right fit for you and your needs. With your finances prepared to support your decision, there’s no wrong answer! We’re here to support your dreams and overall financial health; meet with one of our Financial Coaches to help you with your financial picture.