How to Choose Between Renting or Buying a Place
Many Factors are Involved in Choosing Whether to Rent or Buy
Research is going to be time consuming and it is involved in almost every step of this process, but it is the most important thing to do when making such a big decision. Whether moving out of your parents' house for the first time or moving for the tenth time, finding a new place to live can be a long and difficult process. It is extremely important not to rush the decision, but to take out enough time to research and contemplate the best choice.
Income
The first thing to consider is your income level. This will immediately narrow the search for a place to live. Determine how much you should budget towards a monthly payment. Also, take into account how much you have saved. Buying a house requires a down payment, generally 20% of the price of the house. This can be quite expensive and it may take time to save up for.
Research the average cost for the type of apartment you want and what your average monthly payment would be for a house. Sometimes the monthly payments might be very close in price; it just depends on the area. But just keep in mind the amount you'd need saved for that down payment. You don't want to get a place that is more than you can afford. Generally your monthly payment should be 25%-33% of your net income.
AvailabilityAnother step to deciding whether to buy or rent is to consider what is available in the area you want to live. Some rural areas don't have apartments at all. And the market is ever changing so from day to day different houses or apartments might be available.
ExpensesConsider additional expenses. Some rentals - be they houses or apartments - include utilities, while some don't. If you purchase a house you must pay for your utilities separately and there are also other expenses such as insurance. And depending on where you live, insurance can be very expensive.
PracticalityThink about practicality for your family. It would be impractical in most cases for a very large family to live in apartment, simply because there isn't enough space. Conversely, a five-bedroom home might be impractical for one person.
Make a List
It can be very helpful to make a list of the positives and negatives of both options. Decide what's most important to you. This is a big decision and commitment. It can also be helpful to make a list of what you want out of your horse/apartment. For example, how many bedrooms and bathrooms do you want? Is parking available? What kind of flooring do you want? Do you want a fireplace? And include any personal preferences you are looking for in a place to call home.
Choosing between buying and renting can be hard.
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