To Rent or to Buy, that is the Question

No matter where you live right now, at some point you have probably considered whether to buy or to rent. The answer to the question of renting versus buying lies in the factors you must consider. There is no right or wrong decision, but your personal situation determines which choice is right for you.

First, remember that owning a home is a very involved process and is not right for each situation. If you have issues with your credit, move often, desire a lifestyle that is low maintenance, or cannot afford the additional expenses mentioned in the next section, you might be better off renting.

Many people rate buying above renting as a financial decision, because if you rent, you are just "throwing away your money." On the contrary, there are many expenses that come with buying a home, and most people don't consider these expenses. Money you put toward your home in the form of mortgage interest, property taxes and insurance, closing costs, and routine maintenance, could also be considered "throwing away your money." Although the total you spend depends on many factors, these costs can add up very quickly.

Many experts presenting the positives and negatives of renting versus buying tend to focus on the outrageous prices of a home on the east and west coasts. In these locations, the price you must pay to own a home is substantially less than you could spend to rent a similar home, so owning a home is much less financially viable for the average person. Huge down payments, extremely high monthly payments, and high property taxes make home ownership a near impossibility for people in these regions.

In an area like Rolla, Missouri, though, the cost of buying and maintaining a home is substantially less, so it is more feasible for the average home shopper. For example, a California resident recently sold his 720 square foot condo in San Diego for $350,000. He moved to the St. James/Rolla, Missouri area and paid cash for a spacious 3500 square foot home with some land, spending less on this home than he made on the sale of his condo. Also, taxes in the Phelps County area are very reasonable compared to other parts of the country.