Part of being smart with your money means managing how much you buy. And while that might be as simple as not buying goods you don’t need, it might also mean considering alternatives to buying — like renting or leasing — to save money.
Opting to rent something has its own set of benefits. For example, you rarely have to make a large upfront payment the way you would with a purchase and you likely won’t need to worry about the ongoing cost of maintenance. However, rental costs can add up to more than you’d ever pay for an item in the first place, so it’s important to consider whether renting truly saves you money.
To help, we talked to the experts to find out when renting is the better option and when it’s better to buy.
Home vs. apartment
The decision to rent or buy a home usually isn’t purely financial. You might also crave the stability and pride of owning or the freedom to renovate and landscape how you want. But there are a few factors that make renting the better financial choice — namely, location.
Renting usually makes sense unless you are pretty sure you will stay in one home for at least five years. This is because there are several thousand dollars of transaction costs that come with buying, financing and, eventually, selling a home.
The Citizens’ Voice