Renting Versus Buying: Which Is the Better Decision in Today’s Economy?
Whether you’re outgrowing your living space or trying to plan for the future, weighing the pros and cons of renting versus buying a house is no easy task. If you’re wondering how to build your credit to buy a home, or debating whether renting a house or an apartment is your best option, Daffodil Storage is here to help you examine all the factors that can impact your decision.
Is It Better To Rent or Buy a Home?
Prior to the pandemic, choosing to rent or buy a house came down to whether a mortgage was more affordable for your budget. Unfortunately, this question has become increasingly harder to answer in the past few years as United States home prices continue to rise and inflation increases.
Renting may actually be more affordable, depending on the estimated mortgage payments for houses in your area. Still, unlike a mortgage, the price of rent can and often does increase. In 2023 alone, the cost of rent and utilities rose faster than home values.
Overall, the answer to where it’s better to rent or buy a house should be driven by your financial health, plans for the future, and the state of rentals and homes for sale in your community.
Is Buying a Home a Good Investment?
Regardless of where you stand on renting or buying, it’s important to recognize that purchasing a home can increase your wealth over time, like investing in bonds or stocks, or opening a savings account with a high interest rate. To determine if buying a home is a good investment for you, we recommend examining the following factors:
- Current market conditions. Lean on your financial advisor and real estate agent to determine if it’s an ideal time to buy.
- Pros of renting a house. Depending on your area, renting a home can be more affordable than buying one, and often removes the hidden costs of property taxes, maintenance, and repairs.
- Cons of renting a house. Similar to renting an apartment, the costs of your rent and utilities are prone to increase.
- Pros of buying a house. When you buy a home, you have more privacy, freedom to customize your living space, and predictable monthly mortgage payments.
- Cons of buying a house. Buying a home requires more upfront costs, such as the down payment, and ongoing costs from routine home maintenance and repairs.
How To Build Your Credit
Your credit score is another influence on your ability to rent or buy a house. If you want to understand how to build your credit, it’s wise to work with financial counseling services to tailor a plan to your unique situation. Immediate ways you can help build your credit score include:
- Avoiding new debt or opening new accounts
- Paying bills on time
- Maintaining low credit card balances
Stay Prepared To Rent or Buy a Home With Daffodil Storage
One trait that the house rental market and home buying market share is that they move fast. If you want to stay ready to move into your ideal rental house or close quickly on your dream home, keeping your non-essential belongings boxed up in one of our month-to-month self storage units can help.
Alternatively, if you’re renting for the time being as you save up for a house and have less space, a storage unit gives you the room you need at an affordable rate. No matter what kind of living space you choose, you can count on Daffodil Storage to help you keep it organized. Find a Daffodil Storage facility near you and secure your ideal storage solution today!