SHOULD I BUY OR RENT (Part 3)

In the previous two editions of this blog I have shared information endeavoring to help the reader decide between two options - buy or rent.  This edition will conclude with some final thoughts on the matter and provide you will a link to help you decide which your best option is. 

It is not always good to ask a question to answer a question, but here goes - "What an average U.S. citizen prefers?"

According to studies Americans prefer to rent a place.  The rental market is the highest since 1965 but about 1/3 of those polled replied that renting was a matter of their choice; while 65% claim they rent due to life circumstances and financial issues.  The poll did reveal that a majority of the respondents were planning on buying a house.

There are a few cities that are great for both buying and renting.  A short, but by no means inclusive, list would include the following cities: Wichita, KS; Huntsville, AL; Atlanta, GA; Charlotte, NC; and Tucson, AZ.  

Some things to consider when renting:

 1. The renter should know what the lease can and cannot do before signing.
 2. The renter should know how to protect their security deposit. 
 3. The renter should know obtain a renter's insurance policy to protect against losses due to flooding, fires and robbery.

Some things to consider when buying:

 1. The buyer's financial responsibility extends beyond just the mortgage.  There are also taxes, insurance, maintenance and repairs.
 2. The homeowner has less flexibility to move.
 3. The market and home prices fluctuate.  The property may not appreciated at a rate the homeowner anticipated leaving the homeowner with no profit when planning to sell it.

The final decision is always yours!  You are familiar with your own finances and ability to handle a mortgage.  

Here is a link to NerdWallet.  They have a calculator that may provide the answer you need. 

nerdwallet.com/mortgages/rent-vs-buy-calculator

Happy hunting!