The question of whether to rent an apartment or buy a house can be tricky to navigate. There are a lot of variables that go into this question that can change your decision based upon your circumstances. Two of the main questions to ask yourself when trying to answer this question would be “What is your goal?” and “How much do you currently have saved.” When we understand these questions, we then can gain a better understanding of whether we should buy a house or rent.

To help think through these questions, I have listed just a few pros and cons of both buying a house and renting a house below:

Buying a House
Pros

• Buyer has full control of home improvements if needed
• Homes frequently increase in value over the life of a mortgage
• You don’t share walls with your neighbors
• There is often more space

Cons

• Buyers incur any maintenance and repair costs
• Typically a long-term investment
• Requires upfront costs for down payment, closing fees, etc.
• Interest on mortgage can be substantial
• Buyer pays property tax each year
• Buyer will be required to pay for home insurance with mortgage

Renting an Apartment
Pros

• Certain utilities may be included in the rent
• Landlord pays for necessary repairs and maintenance on the building and appliances
• No long-term commitment once the lease ends

Cons

• l say on pets, property modifications, etc.
• Renting does not build equity
• Less stability—it’s the landlord’s choice whether or not to renew a lease or to raise the price from contract to contract

So, if you’re staying short term, it might be better to rent. But if you plan to be somewhere long term, and you have funds saved up both for the house as well as an emergency fund for the unexpected maintenance of the house, purchasing might be the best option. If you are contemplating this decision for after college and would like some help thinking through the best option as well as running the numbers, feel free to schedule an appointment with a NEXUS Coach today!  https://ronblueinstitute.com/nexus-financial-discipleship-center/