Renting vs Buying a Home. One important question to ask yourself before deciding.

People often ask me, is it better to buy or rent a home? My answer is that depends on many factors followed by one important question, “Can you see yourself moving within the next two years?”

What reasons might cause you to answer 'Yes' to that question? Among other things, it could it be a promotion with higher income (opportunity for a better home), job offer in another town, marriage, or a new addition to the family, or moving to care for an elderly parent.

Buying a home gives you a sense of ownership, privacy, allows you to make changes to your home, helps you feel grounded. On the other hand, renting a home can still help you feel grounded and it also provides you with more freedom to move immediately. Sure you have penalties when you don’t complete your lease and part of them are already covered by last month’s rent and security deposit you paid up front. Do the math. You also need to sell or rent your home if you don’t want to carry two house payments.

So, ask yourself ‘Can you see yourself moving within the next two years?’ Think of any possible scenario that might cause you to move.