Should You Rent Or Buy A Home

Choosing to become a homeowner takes not only a financial commitment but also the emotional maturity to create a plan and a timeline that suits your lifestyle and your budget.
Some experts advise that if you are planning to move in the next few years, buying may not be the best option because of the expenses associated with moving.  However, if you're searching for a place to live for several years, buying now could be a good choice for you. Buying a home can create a higher quality of life, provide more privacy for you and your family, and create a place to call home.
Since there are all kinds of forces at work behind the scenes (interest, property taxes, tax savings, appreciation, opportunity costs, closing costs, selling costs, etc.), comparing the cost of renting to the cost of buying is a lot more complicated than just comparing the monthly mortgage payment to the monthly rent payment.
If you are debating on whether to rent or buy your next home? This calculator attempts to forecast the net effects of all the hidden forces so you can make an informed decision. Much like the stock market rises & falls due to changes in earnings and multiple expansion, the cost of owning vs renting changes across time & location, as real estate is local.

Rent vs Buy Calculator

Renting may be an option if you

The average monthly rent for a three bedroom and two bathroom home in Rio Rico or Nogales, Arizona leases for $750. Rental properties are in great demand in our area. Consequently, rentals rates are projected to rise in the future. Renting a home may be your best option if any of the following situations exist: 
  • Do not have a stable job.
  • Have no credit or credit score less than 620.
  • Plan to move around and don't want to be tied to one location.
  • Had a recent foreclosure or a recently went through a bankruptcy.
  • Don't want to worry about repair and maintenance costs of owning a home. 
  • While there are loan programs available to some borrowers with a down payment of 3.5 percent and sometimes less, you'll need some cash for a deposit, a down payment, closing costs and an emergency fund when you buy a home.

Buying may be an option if you

Ask any homeowner what's so great about owning versus renting, and most will say "the tax deductions!" That's right because all homeowners who itemize their taxes are able to deduct 100% of their mortgage interest and property taxes from their income tax returns. Buying a home may be your best option if any of the following situations exist:Want to build equity over the long-term. 
  • May have funds for a down payment and closing costs.
  • Want the potential tax advantages. (check with a tax advisor for details)
  • Can afford the maintenance costs of owning. (repairs, lawn care, etc.)