Rent or Buy

muffins

Owning your own home means paying no rent! But there are still running costs, such as repairs, insurance and taxes.

And there are extra fees and taxes when you buy and sell property, so you need to stay there long enough for it to be worth while.

A good rule of thumb is:

Less than 3 years: Rent
More than 5 years: Buy

Between 3 and 5 years needs a lot of calculations to make a decision.

You can calculate the Net Present Value of both choices.

For buying include purchase and sale costs (fees and taxes), ongoing costs (repairs, insurance, taxes) and also possible profits on sale if the value goes up.

For renting include rent rises.

Pick the best choice, but bias a little towards buying as it is really nice to have your own place.

Good luck with your calculations!