How to Decide to Rent or Own
It’s finally time to make the move. Whether you are ready to move out of your parents’ home, need more space, or you’re growing your family, this is an exciting time for you. If you’re trying to decide between renting or owning for your next living arrangement, there are several things you should consider, both personally and financially. Looking into the personal financial management tools the Bank offers can help you understand where you stand financially and what you can afford. In order to help you with this important decision, we discuss the big differences you would have to consider when looking at renting an apartment vs. owning a house.
Length of stay
The length of stay you predict your next living arrangement will last is a definite factor to consider. Let’s say you are not fully secure with your professional life just yet, and you wouldn’t mind moving if your dream job asked you to. Jumping into owning a house might make it more difficult to pick up your things and leave, you will have to figure out selling or renting your house, out which can be a long and draining process. An apartment is typically chosen when you don’t want to commit to anything for more than a year to come. A house on the other hand is a better option when you are comfortable settling down in the same location.
Think about moving into your new living quarters, how much customization do you want to have with your kitchen appliances or your bedroom walls? If you are someone who wants to redesign and customize your new space, renting an apartment might limit your freedom to create. A home on the other hand is all yours once you buy it, giving you full control on what you want to do to it.
Take a step back and think about how devoted you will be to your new home. In an apartment, you do not have to worry about fixing a broken shower or changing a lightbulb. Your landlord can be reached at almost any time and can help you with issues you might be having around the place, giving you back some time in the day to do what you want. If you run into issues in your home, it is up to you to fix the leaking faucet or get the lock fixed.
Another thing to think about is the amenities that come with your new apartment or home. A lot of apartments offer a community gym or a pool, which would be nice to have close by and would not require extra costs or maintenance throughout the year. Buying a home with a pool on the other hand changes your responsibilities and will require extra money and effort throughout the year.
Maybe you are not ready to make the move to your own home or apartment just yet, but are hoping to do so in the future. Help yourself stay accountable by starting to save with our high-yield savings account.