When it’s time to get your first home, many wonder is buying or renting a home the right thing to do? Both buying and renting have their pros and cons, so it’s truly a matter of understanding your needs! These options are both great for the different people who have different desires out of their property journey.

Within this post we’re going over several things to consider when determining if buying or renting a home is the right move for you.

Consider Your Finances

One of the biggest factors whether buying or renting a home is your financial state. In terms of home ownership, many people can’t afford the costs associated upfront with buying a home so they may opt to rent for a period. Others may also have issues with credit score, which impacts their ability to get excellent mortgage rates or even approval in certain apartment complexes.

If you’re just starting out, it’s important to really analyze your finances beyond what you bring in monthly. Can I afford the additional expenses that come with home ownership? Will I be able to afford renter’s insurance on top of rent? Am I still able to save enough towards a home if I get into this lease agreement?

All these questions will help paint the picture of whether you’re ready to go full throttle in purchasing or renting for a period of time.

Understand Your Short-Term AND Long-Term Goals

Having a great understanding of your goals is essential in making your decision as well. When it comes to buying or renting a home, we highly recommend purchasing if you have the long-term goal to keep the property (whether for personal or business reasons) or stay within the area.

For example, if you plan to raise a family, are settled in your job and long-term see yourself retiring in this home, buying may be the best option for you! Even if things should change, having the home for family members or even to rent out for income is a great option for you.

On the flip side, if your short-term goal is to do something in an area and then you aren’t sure about the next steps, renting may be the best fit for you! Think college/graduate school attendees. You may be testing out the area while in school and have secured a local, part-time job, but you’re not sure if you’ll be staying after three years. Getting into a lease agreement would be best so you can leave on your time and explore other options.

Know What You Can Handle

Going hand in hand with your finances, it’s important to understand what you can actually handle. Home ownership comes with much more responsibility, (literally your entire property and the expenses associated with it), than renting.

With much responsibility also comes much flexibility! Since you own, you’re in control of all aspects whereas in a lease agreement you won’t be able to have a handle on changes that come your way, i.e. rent raises, upgrades and more.

If you know you’d prefer to be in charge and have a handle on what happens with your space, buying may be the best option for you!

Interested in buying in the Bay Area?

While we don’t currently help with renting, if you are in the market to purchase a home in the next six months please feel free to contact our office for more information on how we can assist you in your journey.