Thinking about purchasing a home?

Compare the costs of owning versus renting a home to see which option may be a better fit for your financial needs. Recalculate to see how certain factors, such as appreciation rate and investment return, can impact cash flows.

Review your cost analysis for renting versus buying at Truvia.com

Is home ownership right for you?

The following are some things to consider when deciding:

What will it really cost? Buying a home usually requires a substantial investment of cash for a down payment, closing costs, appliances, additional furniture, window coverings, and other items.

What will you get for your money? With a home, you may possibly have a yard, a community pool or other amenities. Of course you’ll also be responsible for maintaining the yard, heating, and cooling a larger space, and perhaps paying homeowner association dues to maintain the amenities.

Will you be free to relocate? If your company relocates its employees frequently, or you’re not interested in staying somewhere for more than a year or two, you may want to think twice about buying. What happens if the neighborhood changes or you don’t get along with your neighbors? The costs you incur to sell a home may offset any gains in the property’s value.

How likely is it that your life and needs may change? Is your family growing, or do you have children who are getting ready to leave home or go to college? Will there be other demands on your income or savings?

What return will you get on your investment? Most people believe property always gains value, but that’s not always the case. A change in the neighborhood or the economy can affect the value of your property. Sometimes you’ll make money as a result, but you may lose money on your investment if you haven’t owned the property for a long time. You’ll also need to consider any additional money that you put into the property for improvements while you live there.

How much maintenance do you want to do? When you own your home, you are responsible for making the repairs or hiring others to make them, paying for the repairs, etc.

Where do you want to live? If you want to live close to your work or school, are homes available in that area and can you afford them? Can you find rental housing where you would like to live, or is a home you buy the only option?