By Jarrod Heil

Buying vs. Renting: The Great Debate of Your Living Situation

Since the beginning of modern debate, the goal for many people who are renting a home is to one day save up enough money to purchase a home of their own. Rightfully so.

Rather than renting a home and never seeing the monthly rent money ever again, buying a home means that you’re putting equity toward something you can make your own.

But buying a home is expensive and ties you down to a specific location for many years to come. There’s no other way around it. Due to expenses derived from closing costs, taxes and real estate commissions, it’s recommended that homeowners stay put for at least five years after purchasing.

Those three fees alone can set a new homeowner back anywhere from 7 percent to 15 percent of the home’s purchase price, which will take a few years’ worth of equity building to make back.

Let’s dive into some of the often-overlooked facets associated with buying and renting a home:

Upfront Costs for Renting vs. Owning a Home:

Can You Stay in the Home for at Least 5 Years?

What Does Your Credit Score and History Reflect?