To Buy or to Rent
There's no such thing as the "right" choice between renting and buying. The answer to that question depends on your individual situation. The good news is that there are lots of resources out there to help make this decision easier: from calculators that tell you what monthly payments would be on each option (I can always connect you with a knowledgeable lender for a personal breakdown), to apps that let you compare different neighborhoods based on crime rates or other factors.
The biggest factor in deciding whether to rent or buy is your personal situation.
The biggest factor in deciding whether to rent or buy is your current and foreseeable lifestyle and circumstances. Do you have enough money saved up for a down payment, or do you want to use some of the equity from selling your old house as part of that down payment? Are there any other major life changes coming up soon (such as a change in family size) which could impact what type of home that would suit best for your needs now versus later on in life when those changes occur.
Rent if you're not sure about where you want to live, as well as if your job is unstable.
When looking to purchase, your lender will require you to have three years of steady employment or at least the same field with minimal time gaps if you’ve changed jobs. If your job isn't stable enough in location or for long-term financial planning, then renting is probably a better option for you. If you are not sure where you want to live or If there's any chance of moving in the next couple of years, then renting makes more sense. You can always buy later when things are more secure and stable--and it may even turn out that after living in various places for a while, that your lifestyle is now just that and you love to move and try new places!! (or maybe I’m projecting my wishes to have the freedom to move around the world when my soul says I should onto you…and thats not right of me. Sorry lol)
Buy if you plan on staying in the same place for five or more years to build equity, or if you want to avoid paying someone else's mortgage.
If you plan on staying in the same place for five or more years, buying a house is likely to be much cheaper than renting. The longer you stay in one place, the more money you'll save - and the more equity you gain.
If you're considering buying a home and have enough cash for a down payment, then this option could work well for your financial situation.
Yes, a portion of your monthly mortgage payment is interest and the rate is back to pre-covid numbers. However, the emphasis is on “a portion”, because when renting, the entire amount is interest. (Sassy wink. Lol )
In Conclusion
The best way to decide whether to rent or buy is by weighing all of your options and considering what's most important to you. If you're not sure where you want to live, then rent! If you plan on staying in the same place for five or more years, then buying will likely multiply your wealth. Whatever you choose, just make sure it aligns well with your priorities first.