Buying Versus Leasing

To buy a home, or to lease a home?

That is the question that perplexes many people in the market for a home, especially first-time home buyers, who wonder when the time is right to move from leasing to buying. Financial experts say it is almost always better to own a home than to lease a home, but there are a few reasons you might want to wait.

Leasing a home is a better idea if you are planning to live in an area for only a short time. If you have a temporary assignment that will take you to a different town, leasing a home will make a lot more sense than buying a home. Flexibility and the freedom of having someone to call when the heater breaks or the faucet leaks are among the best reasons to lease a home.

Another situation in which it might not make sense to buy a home is when you are financially strapped. If you don’t have any savings, have a lot of debt and are living paycheck to paycheck, it’s unlikely you’ll want to add the stress of a mortgage payment, since your mortgage payment will probably be higher than your rent would be if you lease a home.

Still, there are many advantages to buying a home. You get the tax break of deducting interest and property taxes, along with the satisfaction of owning your home and being able to do whatever you want with it. It is an investment that is likely to reap financial rewards when you sell it later. Owning your own home is the ultimate American dream, and when your situation is right to jump from leasing a home to owning a home, it’s the best decision you can make.

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