Deciding whether to rent or buy a home can have you talking yourself into financial circles.
“Take advantage of low mortgage rates and build equity!,” your “buy” brain says. “Have flexibility and keep your costs of getting in and out low!,” your “rent” side says.
Ultimately, the decision comes down to your financial fitness, how long you plan to live in the home and what your cash flow looks like.
While the number of home purchases reached a 14-year high in 2020, prices also went up considerably.
Meanwhile, with so many people leaving major cities, landlords have been left in the lurch, and that has translated into some attractive rental deals.
And buyer be warned: The out-of-pocket costs of caring for a home could be even more, said financial planner Matt Hylland. He advises homebuyers to budget up to 3% of the home’s value to cover upkeep and maintenance.
He added, “Don’t forget…other expenses you will face as a homeowner.”