When To Buy, When To Rent: How To Know Which You Should Do

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Getty Sometimes renting a home is the better option. There are situations when renting makes more sense. "Even if you still have months to go on your lease, usually you can sub-let for the remainder of time. So, if you believe you might move in a year, or if you don't know whether you want to settle down in the area you live in, renting is the better option." It is also a good choice for people allergic to home maintenance chores and expenses. "You may not be building wealth each time you make the monthly rent payment, but you have no maintenance worries, either. You simply don't have to think about it, and that can be a nice way to live." Rugg explains that the way home ownership ties people down its more complex that they may anticipate. "They've watched a lot of home renovation shows, and they think that they can always flip the house. In reality, it takes time to sell a house, and there is no guarantee of a quick profit." Another common misconception is that, if homeowners need to move, they can easily rent out their house. "You have to hire professionals for anything that needs to be done, since you are not there to do it yourself. That gets very costly. And, being a landlord is difficult enough when you are close by, and able to build a relationship with tenants. And remember, when people rent a house, they often do not treat it with the care they would if they owned it." While renting is a better option for young people who are apt to make geographic or career changes, he does advocate for home ownership. "If you are in a stable situation and are able to buy a home, you should." Although interest rates have risen, he points out that, compared to historic rates, they are still very low.