When Is It Wise to Rent Instead of Buying and What If You Have to Rent and Can t Build Equity

The question of whether to buy or rent housing is onemortgage payment and then rent for less than that
people have struggled with for ages. Salaries go upamount. Usually mortgage payments are more than
but so does the cost of housing. Is it ever a wiserent for a similar residence, so it is sometimes possible
choice not to buy when that's an option? If it's not anto rent for less and save the difference.
option, how can that be changed?A case recently came to my attention where the
The initial stopper in purchasing a home for most of usperson wanted to rent because she was unwilling to
is funds and credit. If you can't swing a down paymenttake on homeowner responsibility. She looked very
or qualify for a loan then renting isn't so much an optioncarefully at what her monthly costs would be if she
as a necessity. Another stopper is the need for thebought including maintenance, upkeep, and taxes. Next
support that renting is supposed to offer. If it breaks,she searched for and eventually found a good rental
leaks, or falls down it is handy, yet not alwaysfor significantly less than that amount and moved in.
effective, to be able to call the landlord. Rental ownersShe then put her down payment into an
come in all sizes and types and some don't respondinterest-bearing account and added the difference
according to rental agreements. Picking your landlordevery month for thirty years. The amount she saved
may be as important as picking the rental itself.by being so highly disciplined, though substantial, wasn't
Disabled or retired people who are not able to dowhat she would have realized in profit from the sale of
regular maintenance and upkeep may look at rentinga well maintained home but she factored in the stress
as a wise choice. Apartments come with exteriorthat she had averted and felt her plan had been highly
painting and yard work included. Also, a communitysuccessful.
may work better for these two groups than singleThere isn't any "right" way. Don't decide to buy or rent
occupancy.because that's what others are doing or that's what
When forced to rent due to a lack of the cashyou're familiar with. Look more closely at yourself and
needed for the down payment, it's easy to rent moreyour needs and make a personalized choice that will
than is needed and fail to save. The better plan is tosupport you in the future.
see what you could make as a regular monthly