William Raveis Real Estate
Cheryl Caldwell, William Raveis Real EstatePhone: (978) 609-1041
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How to Know Whether It's Better to Rent or Buy a Home

by Cheryl Caldwell 10/17/2022

How do you know if it’s better to buy or rent a home? With so much to consider, this big life decision may seem overwhelming. However, as long as you focus on some key questions, you can make the best choice. Here are the questions to ask yourself if you’re trying to decide between renting and buying:

What’s Your 5-Year Plan?

Buying a home is a commitment. If you have a clear plan for the future and are comfortable to stay in one place, home ownership might be a good option for you. Thinking in terms of a “5-year plan” is a good way to determine whether you should buy versus rent, because it takes approximately 5 years for a house to appreciate enough value to make up for the cost. Also, mortgages often have fixed terms that will penalize you for paying off or breaking contract early.

Renting gives you more freedom to move around and change your mind in the future. Most rental agreements are for a year or less and some even allow month-to-month commitments. If you do not want to stay in one geographical area for the long term, renting is a good idea. It’s also simpler if you decide or need to make a career change requiring relocation.

What Specific Aspects of Home Ownership Appeal to You?

Home ownership has amazing benefits. However, it’s important to consider which of those benefits matters the most to you in your situation. A good question to ask yourself is what specifically about owning a home appeals to you. Do you want complete autonomy over things like design, landscaping and maintenance? If so, buying will be better than renting for you. If you are looking for a sense of permanence and the ability to truly make a space your own, ownership will also provide you with those benefits over renting.

These are just a few things to think about when deciding between renting or owning a home. Weigh your options and ask yourself these questions in order to make the best choice.

About the Author
Author

Cheryl Caldwell

Cheryl Caldwell has been a licensed Realtor in the Greater Newburyport area since 2006 and has been a consistent multi-million dollar producer. Her prior 15-year experience as a commercial and residential real estate paralegal in Boston and then Newburyport has proven a valuable asset as she assists her clients, both buyers, and sellers, in navigating through the paths to buying or selling real estate. She prides herself on her hands-on approach to each and every client, property, and challenge that comes her way. Working extensively with builders and developers on new construction as well as renovated homes has provided her with a skill set that benefits her clients every day.