Key considerations when thinking about purchasing a home rather than renting are:
1. How long are you going to stay in that home?
If the answer is less than 2-3 years, you may be better off renting, unless you intend to keep the home as an investment and rent it out.
The timespan is also related to the amount that your property is likely to increase. With 3% annual price appreciation, a $250,000 house would be worth more than $337,000 in 10 years. With a 1% annual price increase, the same house’s value would grow to $276,000 over the same time period.
2. Are you looking for control over your home?
All homes require at least a limited amount of maintenance, and if something breaks, there is no longer a landlord to fix it when you purchase! Of course, the upside is that you get to remodel, paint, and generally fix up your home however you want to. You may also have pets, depending on the neighborhood restrictions, if any.
What you can buy for your rental payment:
Approximate examples with 5% down, see calculator on each home for details. Because of fluctuations in interest rate, these are all examples only - check in with your lender for details. With a larger downpayment, you may qualify for a more expensive home.