Is It Better to Rent or Buy a House? Financial Experts Explain

There is no one-size-fits-all approach to where you live and how you pay for it.

However, like every other major life choice, the decision to rent versus buy property deserves careful consideration.

So is it better to rent or buy a house?

We asked personal finance experts to help us navigate the often intimidating process.

Keep reading for everything you should probably consider and all the tough but necessary questions to ask.

Renting vs. Buying: What’s the Difference?

There are many differences between renting and buying a home.

First and foremost is the financial cost of a monthly payment.

Renting a property doesn’t come with the responsibility that homeownership does regarding taxes and property maintenance.

Buying a home affords more lifestyle stability while renting gives the flexibility not to be tied to one location.

Depending on your financial situation, this tax deduction could benefit you.

In some cases, purchasing a home can save you money on your monthly expenses.

Many financial experts challenge the blanket statement that renting is a waste of money.

“So it’s definitely not a waste of money.”

Renting is also a great option if you are not sure about putting down roots long-term yet.

You are usually prohibited from doing anyhome renovations or remodels.

Do I want to move states in the near future?

Do I plan on extending my family?

Do I want to work remotely or in person?

Here are some other points to consider.

The return on investment in the stock market might be averaging at about 10 percent year over year.

And the average annual growth in home prices might be 4 percent a year.

Taylor recommends that you assess your financial standing: Are you secure in your job?

Do you feel confident you’re in a position to continue earning a steady income?

How’s your credit?

Are you underwater on high-interest debt?

Housing marketsvary.

Sometimes, you might be financially ready to own a homejust not in the place you’re currently living.

Sometimes, you don’t have to pick just one option.