Is It Better to Rent or Buy a Home Ah, the age-old question. If you’re ready to move into a larger home or are relocating to a different area, you may be asking yourself whether it would be a smarter financial decision to rent or buy a new property.
Renting versus Buying: Which Is Best?
According to The New York Times, making the decision to rent will depend on a number of factors – especially how quickly rent prices rise and how long you plan to stay in a certain location.
As a rule of thumb, buying is a better decision than renting if you plan to live in a home for more than five years. After the sixth year of residence, buying becomes a wiser choice; it could cost you up to $10,000 less than renting with a total savings of close to $2000 per year.
Nonetheless, many potential buyers find it difficult to scrape together the cash for an expensive down payment for a home. This amount could be 20% of a property’s value, depending on the loan. When buying a home, you also have to take into consideration a number of costs that will be incurred at …