The 3 Factors in Renting vs Buying a Home
Buying or renting a home.
With rental homes almost impossible to find and mortgage rates low, how do you make an informed financial decision about which option is best for you?
There are 3 main factors that you need to consider:
- Financial - Which option makes the most sense
- Emotional - Which option will provide you with the best quality of life
- Timing - Which option works best for the amount of time you are currently planning to stay in a home
To begin considering the financial repercussions of renting a home vs buying one, there is a fantastic new tool that I just found. Everyone should bookmark this page, you will want to return to it over and over again. It is the Rent vs Buy Interactive Calculator published by the New York Times. You can manipulate all the variables to see how the act against one another. It is the best tool I have seen. Below are two screen shot examples using a home sale price of $250,000: