Here's where it makes
sense to rent:
You have limited funds. If you don't have the money for a
down payment and additional costs of owning a home, renting is the best option.
Use rent-versus-buy calculators at Trulia or Bankrate.com to see what you can
afford.
You are uncertain about your employment. If you are unsure
about your job situation or living paycheck to paycheck, focus on conserving
cash for future living expenses and building up your emergency fund, said
Evelyn Zohlen, a certified financial planner and president of Inspired Financial
in Huntington Beach, California.
More millennial are moving into the real estate market.
About 65 percent of people ages 25 to 34 years old surveyed by Realtor.com in
mid-June said they plan to buy in the next three months.
But buying is not always the best option. When deciding one
of the biggest financial decisions of your life, keep these things in mind to
see if you're better off buying or renting.
You have a short-term time horizon.
If you are on a work assignment that lasts two years or less,
it makes more sense to rent rather than taking on the high transaction costs of
purchasing a home. Same goes if you plan to move in the next couple of years or
want to start a family in a few years. On a similar note, if you are going
through a significant life transition, like divorce or loss of a spouse,
renting is a better idea while you get a little better footing.
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