The choice of where you live is simply functional, usually based on affordability. Renting is a great option while you build your savings and make another move or two up the corporate ladder before settling down to a home of your own.
While the function of renting is mobility, owning a home offers more choices and the opportunity to build equity. You may want more space, privacy, and better access to schools, family or work. You can expand your interests, such as cooking in a larger kitchen, creating art in a studio, or having a large back yard for gardening and entertaining.
As your preferences become more focused, you may find that owning a home is more suitable for your lifestyle. In most areas, you can buy a home more affordably than renting.
Let’s say that you find a 2,400-square foot home for sale or lease. You may be able to rent it for $1.25 per square foot, or $3,000 per month, but you can buy the home for $1.65 per square foot or $400,000. When you finance at a fixed rate over 30 years, your payment is closer to $1,900. Add in typical property taxes and hazard insurance, and you’re at about $2,700 per month, and all the interest is tax deductible, making buying the home a better deal.
Choosing a home is about getting the most benefit for your money. It should be a decision based on how well the location, space and design serve your needs and pocketbook.