Should you rent or own? A checklist will help you decide

Spring is the season of mortgages and lease renewals. As you prepare for the coming season, you may be having the same discussion with yourself that you’ve had in years past: Is it time to finally buy instead of rent? If you’re a serial renter, you know there are perks and pitfalls to not owning your home. When it comes to deciding which is the determining factor, here are a few places to begin.

What are my long-term plans?

Buying a house is great for putting down roots and investing in a purchase. If you know you want to stay in a certain area or at a specific job, buying a home in that area could have great potential. Alternatively, if you’re not sure what the future holds or you prefer the space to move around relatively untethered, a rental space may be more appropriate. To vacate or find a new rental is low maintenance compared to listing a house on the market if you decide to leave.

What is my maintenance budget like?

For renters, maintenance is usually budgeted into the rent for you. The upside is that if the dishwasher breaks, you won’t have to pay for a new one in most cases. However, there may be months that you’re paying extra for maintenance you’re not using if nothing breaks. If you’re the homeowner, all home maintenance is your own but you also have the power to determine what’s worth repair or what you can DIY a solution to.

Are my savings established?

Renting and buying both require strong savings practices, but the funds may be on retainer for different things. When you’re a homeowner, you will have to allocate savings for renovations and repairs to keep the value of the home high. As a renter, you don’t need to consider property value or the rising and falling of the housing market; your savings can be allocated more fully to other goals.

You can use resources like calculators to determine which option may be right for you. Ultimately, owning a home is as much an emotional decision as it is financial, so if you’re not ready to commit yet, it could be a sign that it’s not the right time yet.