Is Renting Better Than Buying?
Tough question, isn’t it? Some folks fall squarely on either side for very legitimate and often personal reasons. Where you find yourself in life also might affect whether you choose to rent or buy. Then there’s that wild card called the economy, which affects us all. But, absent current variables, here are more questions to ask about renting versus buying.
Is it cheaper to rent?
The quick answer is it depends where you are. A small town in Montana? Maybe. In Florida, where the population continues to grow and perennial industries such as tourism fuel the economy, not so much. Some areas can be more affordable, of course, but demand drives rental rates. And people want to live and work in Florida. A 2016 …show more content…
Is it more flexible to rent?
It depends on your definition of “flexible.” If you truly need to be, say for career changes or a family situation, that’s a unique decision only you can make. The bigger question is stability versus uncertainty. When the number of renters grows in any housing market, it shrinks the housing supply and drives up costs. The rent on a house or townhouse you might normally afford, becomes unaffordable. And that’s without considering the possibility of future rent increases. If you own your home, your monthly mortgage payment doesn’t change. Plus, you may be able to refinance your loan to lower your payment.
Is it safer to rent?
Another question only you can answer, depending on life circumstances. But, think hard about the following facts. According to U.S. Census Bureau data, 20 million rental households spent more than 30 percent of their income on rent in 2011 — the highest numbers in seven years, at that time. Median rent payments also increased 19.6 percent during that span — from $728 to
Tough question, isn’t it? Some folks fall squarely on either side for very legitimate and often personal reasons. Where you find yourself in life also might affect whether you choose to rent or buy. Then there’s that wild card called the economy, which affects us all. But, absent current variables, here are more questions to ask about renting versus buying.
Is it cheaper to rent?
The quick answer is it depends where you are. A small town in Montana? Maybe. In Florida, where the population continues to grow and perennial industries such as tourism fuel the economy, not so much. Some areas can be more affordable, of course, but demand drives rental rates. And people want to live and work in Florida. A 2016 …show more content…
Is it more flexible to rent?
It depends on your definition of “flexible.” If you truly need to be, say for career changes or a family situation, that’s a unique decision only you can make. The bigger question is stability versus uncertainty. When the number of renters grows in any housing market, it shrinks the housing supply and drives up costs. The rent on a house or townhouse you might normally afford, becomes unaffordable. And that’s without considering the possibility of future rent increases. If you own your home, your monthly mortgage payment doesn’t change. Plus, you may be able to refinance your loan to lower your payment.
Is it safer to rent?
Another question only you can answer, depending on life circumstances. But, think hard about the following facts. According to U.S. Census Bureau data, 20 million rental households spent more than 30 percent of their income on rent in 2011 — the highest numbers in seven years, at that time. Median rent payments also increased 19.6 percent during that span — from $728 to