Dan Asks… I’m a recent college graduate and am thinking about whether I should rent a property or buy my first home… By renting am I just throwing money away?

Let me start off by saying that renting in no way should be viewed as just throwing money away. Every person looking to either rent or buy a home is faced with different circumstances, each of which should play a part in their decision to rent or buy. Whether it be your financial limitations, a potential relocation due to your job or how comfortable you will feel owning your own home, these are all things you need look at with consideration. Therefore, when it comes to the question of whether you should rent or buy a property, I suggest you ask yourself the following questions and use them as a guideline to buying versus renting.

Where do you stand financially?

  • Do you have a job that provides you with a steady income? If so, do you feel comfortable in the stability of this job? Losing your job and being faced with monthly mortgage payments will likely be far more daunting than having to pay rent in the same situation. If you have a lot of money in savings or feel as though your career is safe, then I suggest you continuing reading.

How would buying affect your finances?

  • Consider all the costs of purchasing a home compared to simply just moving into a rental. Down payment, closing costs, moving costs, purchasing new appliances, renovations etc. If you do not think that you have enough in savings or your current income cannot support the expenses of owning a home, you may want to consider renting, at least for the time being. If you do feel financially stable, it is now time to move on to the final question.

What are the pros and cons of owning?

  • Determine how owning a home will improve your quality of life. If you find it difficult to come up with a solid list of ways in which home ownership will positively affect you than perhaps it is not worth taking on the responsibility of a home. On the other hand, if your list of pros is strong and you feel comfortable with it, I think it may be time for you to move forward with your ownership plans.

Now that you have closely considered each of the questions above, I hope that you have a better idea of whether you should rent or buy a home, Dan!

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
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