Should You Buy or Rent Your Next Home?

It used to be that buying a home was the number one goal of every young adult. It signified a level of responsibility and established a person as a full-fledged grown up. These days, adulting seems to be a little more nebulous. Why do I need to settle down to be an adult? What if I love to travel? Things are different now. Our parents and grandparents tended to work for one company their entire career. They opened accounts at one bank. And drove one brand of vehicle. These days, the options are unlimited and young adults have more opportunities. Changing jobs every few years is seen less as a lack of commitment and more like trying to find the right fit.

In much the same way, owning a home has become less attractive to every generation – not just millennials. The old adage that paying rent is just throwing money away is old-school thinking. Still, it can be difficult to make the right decision.  Now that you’re on your own, how do you know whether you should live in an apartment community, rent a house or buy a home? Great question.

Speaking of questions, here are six to ask yourself that can help you make an informed decision.

1. How are my finances?

According to a Forbes article, you shouldn’t spend more than 30% of your gross monthly income on your rent or mortgage payment. So, for example, if you gross $3,500.00 a month, you shouldn’t spend more than $1,125.00 a month on rent.

When you purchase a home, every mortgage payment will work to pay down the total cost of the loan, so that you own a bit more of your home each month. But you’ll also need to consider the up-front costs, such as the down payment and closing costs, home owner’s insurance, property taxes and the interest on your mortgage loan. Finances are an important consideration when making this big decision, but it’s not the only thing that should be weighed. If you don’t want to be tied down, but still like the idea of investing in your future, look into taking the total of the upfront costs and investing in a high-risk fund that could offer a greater return in less time and still allow you the freedom to live wherever you choose.

2. How long do I plan to live in the house?

If you answer fewer than 3-5 years, you might consider renting instead. But if you say 5+ years, buying might be for you.

3. Can I handle the upkeep of a home?

Upkeep and maintenance on a home can be expensive and time consuming. But with the right tools and mindset, you can save some money by fixing minor issues yourself. Maintaining a home is much like maintaining a car. There are certain things you should do every year to keep you home in optimal working condition. If you don’t keep the drains in your home clear, for example, they can become clogged over time. Before you know it, you’re dealing with a sewer back up. Now, rather than paying a minimal drain cleaning fee each year, you’re hit with an expensive repair service that disrupts your home, tears up your yard and could clean out your emergency savings account.

4. Would I enjoy yard work?

Homeownership means taking care of the outside of your home, too. Cutting the grass, cleaning the gutters and downspouts, winterizing outdoor pipes and faucets, and clearing outdoor drains are just a few of the tasks you’ll need to stay on top of on the exterior of your home. If so, renting or buying a house is ideal. If not, you might consider renting in a community where the yardwork is handled by a service.

5. Does the idea of settling into a community appeal to me?

If you’ve got wanderlust, or simply like the idea of not being tied down to any one place, homeownership might not be for you. You might like the idea of being able to pick up and move to a new city or take a new job clear across the country. There’s nothing wrong with that – but it will impact your living arrangements. Choose a short-term rental, or rent month-to-month so that you can have the flexibility your travel-loving heart desires. But if you do like the idea of planting roots and calling one place home, start home shopping!

6. Would I enjoy decorating a home?

Painting rooms any color you like, adding wainscoting, changing the flooring, even a complete remodel… if the thought of having your very own home remodeling projects sound exciting, consider buying. No landlord can tell you whether or not you can put in new windows or paint the living room. You can do as you please. Think of it as your own blank canvas that can change as your tastes do. But if you’d rather watch paint dry than do the painting yourself, stick to rental properties.

Regardless of whether you choose to buy or rent, you’ll want to take good care of the place you call home.  That means ensuring the roofing, wiring, plumbing, and other structural elements are in good working order.

Maplewood Plumbing has proudly served the St. Louis and surrounding communities for over 30 years. As your trusted professionals, we offer full-spectrum plumbing-solutions, from drain cleaning to full remodels. If you have questions about your current or next home’s plumbing, contact us today.