Rent vs. Buy: Which is Right for You?

Deciding between renting a home and buying one is one of the biggest financial decisions you will ever make. There is no single "right" answer—it depends on your local market, how long you plan to stay, and your financial goals.

1. The Hidden Costs of Buying

Buying a home builds equity, but it also comes with unrecoverable costs (money you never get back), similar to rent. These include:

• Property Taxes: An annual fee paid to the government.
• Maintenance: Repairs, landscaping, and upkeep (often estimated at 1% of home value per year).
• Interest: The cost of borrowing money from the bank.
• Buying/Selling Costs: Agent commissions and closing costs can eat up 6-10% of the home's value when you move.

2. The Flexibility of Renting

Renting offers flexibility and predictable monthly costs. While you don't build equity, you also aren't responsible for major repairs, and you can move easily for job opportunities. If the stock market outperforms real estate appreciation, investing the difference (rent savings vs. down payment) can sometimes yield higher returns than buying.

3. Calculate Your Scenario

To make an informed decision, you need to run the numbers for your specific situation. We recommend using our partner tool, NeatCalc, which offers a comprehensive Rent vs. Buy calculator.