{"id":9511,"date":"2020-07-15T18:03:34","date_gmt":"2020-07-15T18:03:34","guid":{"rendered":"https:\/\/chenoafund.org\/?p=9511"},"modified":"2026-03-24T14:28:19","modified_gmt":"2026-03-24T14:28:19","slug":"to-buy-or-rent-what-is-the-best-option","status":"publish","type":"post","link":"https:\/\/chenoafund.org\/to-buy-or-rent-what-is-the-best-option\/","title":{"rendered":"To Buy or Rent? What is the Best Option?"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; row_position_desktop=&#8221;default&#8221; row_position_tablet=&#8221;inherit&#8221; row_position_phone=&#8221;inherit&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; flex_gap_desktop=&#8221;10px&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text css=&#8221;&#8221; text_direction=&#8221;default&#8221;]\n<h1><strong>To Buy or Rent? What is the Best Option?<\/strong><\/h1>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; row_position_desktop=&#8221;default&#8221; row_position_tablet=&#8221;inherit&#8221; row_position_phone=&#8221;inherit&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; flex_gap_desktop=&#8221;10px&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]<em><strong>Author:<\/strong> Christian Olin, VP of Direct Lending at <a href=\"https:\/\/onqfinancial.com\/?dataObj=%7B%22gaId%22%3A%22%22%2C%22initialTrafficSource%22%3A%22utmcsr%3Dgoogle%7Cutmcmd%3Dorganic%7Cutmccn%3D%28not+set%29%7Cutmctr%3D%28not+provided%29%22%2C%22browserName%22%3A%22chrome%22%2C%22isMobile%22%3Afalse%7D\">OnQ Financial\u00a0<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Unless you plan on living with your parents forever, you\u2019ll need to explore housing options. One of the first decisions you need to make is whether to rent or buy. There are a few factors that play into this choice. Think about how long you\u2019re planning on living in the area, the cost of the area, and your down payment.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Advantages of Buying<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When you purchase a house, every monthly mortgage payment you make builds your equity. By owning a home, you\u2019re adding to your worth. With higher equity on your home, you can apply for things like an equity loan or line of credit if you need it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another substantial financial advantage of owning a home is that <\/span><a href=\"https:\/\/www.daveramsey.com\/blog\/buy-vs-rent-myths-busted\"><span style=\"font-weight: 400;\">property taxes are tax-deductible<\/span><\/a><span style=\"font-weight: 400;\">. You can also deduct your mortgage interest in your tax returns. Tax deductions can add up quickly, and when tax season rolls around, you could see a hefty return!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With home improvement shows rising in popularity, it\u2019s hard to avoid the renovation itch. While there are options to improve your rental property\u2019s appearance with things like peel-and-stick wallpaper or cabinet covers, these are temporary and can seem like a waste of money. By owning a home, you can invest in long-term improvements that make your house feel like a home.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, by owning your house, you don\u2019t have to deal with landlords. While some landlords have minimal contact with their tenants, some may be a bit difficult to deal with if they are breathing down your neck. Renting can sometimes feel like you don\u2019t have much privacy in your own home, and who wants to feel like that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While these are all considerable advantages to purchasing a home, there are also situations where renting is a better option. We\u2019ll dive into those later.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Look at Rent or Buy Calculators for Your Area<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Many people think that having a mortgage is more expensive than renting, but this is a myth. The difference in cost does depend on your area, but in many areas it is cheaper to buy a home. If you are wanting to compare the prices of buying or renting in your area, there are a few calculators you can use to help you.<\/span><\/p>\n<p><a href=\"https:\/\/www.trulia.com\/rent_vs_buy\/\"><span style=\"font-weight: 400;\">Trulia<\/span><\/a><span style=\"font-weight: 400;\"> has a great page where you can enter your zip code, target monthly rent, target home price, and the down payment amount you have available. It\u2019ll give you a graph comparing the costs of buying and renting and tell you at what point buying becomes cheaper than renting.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.nerdwallet.com\/mortgages\/rent-vs-buy-calculator\"><span style=\"font-weight: 400;\">Nerd Wallet<\/span><\/a><span style=\"font-weight: 400;\"> has a similar calculator, but it also includes the interest rate and length of the loan. This can be helpful if you\u2019re wanting to explore different loan options and are looking to weigh out the benefits of each.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Consider How Long You Want to Stay<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A big factor to take into consideration is how long you want to stay in the area. While it may save you money after a few years to buy, it doesn\u2019t make sense to invest in property if you\u2019re planning on leaving before you hit the breakeven mark. The calculators mentioned previously are excellent tools to utilize to see if buying a house is sensible with your projected timeline.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A mortgage is a significant responsibility and should take a lot of consideration. You\u2019ll know you\u2019re ready to buy if you\u2019re willing to invest in that area.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">If You\u2019re Looking at an Expensive Area, Consider Renting<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Housing shortages and surpluses occur in different areas across the nation. With a shortage, housing prices will skyrocket since you\u2019re in a market where sellers have the upper hand. On the flip side, housing surpluses can cause prices to drop, and it would be more financially reasonable to buy a house then while it\u2019s inexpensive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some areas have rent gaps, where it is significantly cheaper to own than rent. <\/span><a href=\"https:\/\/www.urban.org\/urban-wire\/17-cities-rent-gap-makes-it-cheaper-average-own-rent\"><span style=\"font-weight: 400;\">Urban did a study<\/span><\/a><span style=\"font-weight: 400;\"> of some major metropolitan areas around the country to show the percent difference in average price. In cities like Miami and Detroit, it can be over 10% cheaper to buy. In San Francisco on the other hand, it\u2019s over 40% more expensive to purchase a home. Make sure to look into these gaps in your area to determine which is best for you and your family.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Will You Have a Down Payment?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A down payment is one of the most overwhelming parts of buying a home. It\u2019s a large chunk of change! It\u2019s essential to save for a down payment to lessen your monthly mortgage costs later on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Home buying courses are also available both online and in-person and can help you navigate through this process. You can learn valuable information to help you make informed decisions. If you\u2019re looking for a tool to help figure out your down payment, you can check out this <\/span><a href=\"https:\/\/www.nerdwallet.com\/blog\/mortgages\/down-payment-calculator\/\"><span style=\"font-weight: 400;\">calculator<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Make the Best Choice for You<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Owning a home comes with many advantages, but it is a big decision that should not be taken lightly. There is no single answer to the question of whether you should rent or buy, given so many factors that play into it. Utilize tools available to you, such as courses and calculators, to help find what\u2019s best for you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Renting can save you money if you\u2019re planning on living in a more expensive urban area, or if you\u2019re planning on moving soon. Buying may be your better option if you want to build equity, invest in property in a specific area, or want to use property taxes and interest as tax deductions. In some places around the country buying a home is <\/span><a href=\"https:\/\/www.trulia.com\/research\/rent-vs-buy-summer18\/\"><span style=\"font-weight: 400;\">26.3% cheaper than renting<\/span><\/a><span style=\"font-weight: 400;\">. So it may all depend on where you choose to live.\u00a0 Don\u2019t forget the appeal of the freedom of renovating as well!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Renting and buying both have their benefits and drawbacks, but by becoming more informed on each option, you can make the decision that is best for you and your family.<\/span><\/p>\n<p><strong>Meet the Author:<\/strong><\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"wp-image-9473 alignleft\" src=\"https:\/\/i0.wp.com\/chenoafund.org\/wp-content\/uploads\/2020\/06\/Screen-Shot-2020-06-22-at-11.51.11-AM.jpg?resize=349%2C444&#038;ssl=1\" alt=\"Screen Shot 2020 06 22 at 11.51.11 AM\" width=\"349\" height=\"444\" data-pin-description=\"Screen Shot 2020 06 22 at 11.51.11 AM\" \/><\/p>\n<p><strong>Christian Olin, <em>VP of Direct Lending at <a href=\"https:\/\/onqfinancial.com\/?dataObj=%7B%22gaId%22%3A%22%22%2C%22initialTrafficSource%22%3A%22utmcsr%3Dgoogle%7Cutmcmd%3Dorganic%7Cutmccn%3D%28not+set%29%7Cutmctr%3D%28not+provided%29%22%2C%22browserName%22%3A%22chrome%22%2C%22isMobile%22%3Afalse%7D\">OnQ Financial\u00a0<\/a><\/em><\/strong><\/p>\n<p style=\"font-weight: 400;\">Christian\u00a0started his career right out of college as a rookie on Wall Street with Morgan Stanley.\u00a0After cutting his teeth there, he was quickly poached by a private investment bank, which is where his love of finance grew into a lifetime obsession. With over 20 years of experience, he has become a specialist at sales management, strategic business development, building best of breed teams, and cross-functional selling. In particular, his experiences in emerging finance technologies have been useful in his current role as Vice President of the direct lending team at<a href=\"https:\/\/onqfinancial.com\/?dataObj=%7B%22gaId%22%3A%22%22%2C%22initialTrafficSource%22%3A%22utmcsr%3Dgoogle%7Cutmcmd%3Dorganic%7Cutmccn%3D%28not+set%29%7Cutmctr%3D%28not+provided%29%22%2C%22browserName%22%3A%22chrome%22%2C%22isMobile%22%3Afalse%7D\"> On Q Financial<\/a>. A place where he continues to create new opportunities for mortgage lenders and their partners while improving the bottom line.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; row_position_desktop=&#8221;default&#8221; row_position_tablet=&#8221;inherit&#8221; row_position_phone=&#8221;inherit&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; flex_gap_desktop=&#8221;10px&#8221;&#8230;<\/p>\n","protected":false},"author":4,"featured_media":9473,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[36],"tags":[503],"class_list":{"0":"post-9511","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-chenoa-talk-homebuyer","8":"tag-buying-versus-renting-a-home"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>To Buy or Rent? 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