Renting vs. Owning: Which is Right for You?

Moving to a new place can be one of the hardest decisions anyone can make. Not only is it a major investment financially, but it also has a tremendous impact on how you live your everyday life. There’s a big difference between owning your own home and renting an apartment, so you’ll want to weigh all the pros and cons before making your final decision. Your decision will depend on many factors, including your current financial standing, future plans, and various housing demands, but here are some things to consider when deciding whether to rent or own:

First, try these online calculators…

When looking at the decision from a financial perspective, there are several online calculators that do a great job comparing the costs of renting vs. owning, and are also easy to use. Any of these should be able to help with your decision, but check out all 3 to see what they have to say:

• Bankrate.com – Buy vs. Rent and Mortgage Calculator
• The New York Times – “Is It Better to Rent or Buy?”
• Trulia.com – Rent or Buy Calculator

Once you’ve seen a breakdown of the numbers, it’s time to dig into what you’re really looking for and capable of. There are several important indicators that can help make your decision easier, so make sure you consider the following when looking at whether to rent or own:

You might be better off BUYING if…

• You have a reliable income/salary, good credit, and can afford at least a 5% down payment on a potential property
• You have an ample savings plan that can help you survive any major financial setbacks
• You’re interested in building equity and receiving homeowner tax breaks and benefits
• You’re planning on living in the same place for 5+ years
• You can afford the costs of maintenance and ownership (i.e. repairs, lawn care, taxes, etc.), and are able to fulfill those responsibilities

You might be better off RENTING if…

• A 5% down payment is financially out of reach
• Your current finances don’t allow any wiggle room for unexpected home expenses
• You don’t have the finances or desire to handle home maintenance responsibilities
• You have a career or lifestyle that doesn’t allow you to settle in one place
• You’re planning on downsizing or retiring
• You enjoy having certain amenities, but can’t afford them personally (e.g. swimming pool, sauna, fitness center, etc.)

Of course, buying a home is a major financial investment, and should only be made when you’re truly ready. If you’re not ready for that kind of commitment, however, renting provides an excellent alternative – especially when you rent from Springs Apartments. To learn more about our various apartment communities and their amenities, please check out our online location finder or contact a leasing team member today!