4. What’s the risk?
It’s always a good idea to assess both sides of the argument and take a look at the pros and cons. Although you can build equity when buying a home, you could potentially lose money if there is a downturn in the local real estate market. Or if you sell your home sooner than you wanted, you might not be able to recoup for what you spent on closing costs or renovations. On the other hand, renting means you won’t have the opportunity to build equity like you would with homeownership. Your rent could rise and you’re typically at the mercy of the property owner on how pleasurable (or miserable) your experience is in your rental.
5. What’s your financial position?
Don't approach this decision alone. Working with a financial team that includes a financial planner, real estate agent, and mortgage loan officer can help you assess your current situation. More so, your team can help you with the savings and lifestyle strategy on both renting and buying.
At the end of the day, this decision is all about your own perspective and should be based on what makes the most sense for you and your financial situation, future plans, and lifestyle.
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Financial advice for real people, by real people. You shouldn't need a degree to understand your money. Join Head of Education, Brittney Castro and Altruist mentors as they break down financial tips and strategies in a real way to help you finally understand how to achieve your financial goals faster.
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