by Terri Valerian

Created on: January 10, 2007   Last Updated: October 23, 2009

Whether to rent or buy a home is a personal decision that can only be made after taking into account a number of factors.

Many people will tell you that buying a home is far more fiscally sound than renting. In a vacuum, this is true. While renting you are "throwing money away" versus buying, in which you "end up with something". Also, unless a neighborhood becomes undesirable for some reason, real estate values tend to go up.

In general, buying is more sound. In addition to the above reasons, you have the added satisfaction of the freedom to do what you like with the house and yard. This can be well worth the investment involved in owning, especially if you have rented for a while and are tired of it. (You know who you are!) Owning also comes in handy if you are an animal lover and have one or more pets.

However, there are some cases in which renting may be the right choice. If you are planning a move for your job or a major change in your relationship status in the short term, renting is probably the way to go. The reason for this is that if you are unsure as to whether or not you can stay in the home for a minimum of 2-3 years for any reason, it's often best to rent. The fees involved in buying and selling are likely to be greater than what you would make on the sale of your house. Real estate tends to make more money after a few years.

Although financial concerns are a big part of making the decision to rent or buy, it's important to take into account how you feel about your options. Are you ready for the responsibility that comes with owning a home? Or would you rather have someone else take care of the maintenance for you? I am not handy. There was a time in my life when I thought I would never want to own a house for that reason. Of course, then I got married and had kids and things changed. But, until recently, I just wasn't ready to take the house plunge. It's a big commitment and responsibility. You will get more joy from your home if it is a responsibility you take on willingly and with some foreknowledge of what is involved.

Of course, there is also the option of owning a condo in which much of the work is taken care of for you. Ownership can be enjoyed without all the hassles of maintenance, but at the cost of some of your privacy. This option is particularly nice if you are young, single, and very involved in your career or travel. Alternately, older adults and couples often enjoy condo life once their children have moved out or if health problems make it difficult to manage the maintenance of a home.

In the end, this is a decision to be made only after doing your homework and examining your finances and feelings. Self knowledge will help you make the best choice. Good luck!

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