Many people can tell you a list of reasons why you should buy a home. But as with everything else, it depends on who and where you are, in your life as well as your career. Despite the prevailing assumption that everybody, everywhere should settle down and buy their own home, research shows there are actually times and circumstances when renting might be better than buying.
Will you put in the time?
In any investment, there's no such thing as a sure thing. What usually makes real estate a better risk than most is time. The longer you commit to a property, the better your chances of seeing its value appreciate.
If it is likely in any way that you will move, change jobs or stay in the house for a short period of time, buying may not be a good idea. Letting go of a property before it has appreciated enough to cover the costs and commissions is not pleasant and if you bought with less than a 10% down payment, it could be brutal. Commission and closing costs will likely wipe out appreciation gains, if there were any. If the purchase was made with an even smaller down payment, chances are you'll come out at a substantial loss.
Will you like the neighborhood?
If you are new to a state, city or town such as Roanoke, research suggests you take ample time to acclimatize before investing money in a house and its neighborhood. If you are relocating to a place you hardly know, spend a year in an apartment in Roanoke until you're certain where and how you want to live.
Will you be happy giving up the freedom?
Initially at least, renting is less financial pressure than buying. Paying a first and last deposit doesn't compare to the big chunk of change required for a down payment on a house. And even if you have enough savings, you could invest it otherwise and hope for significant capital gains. With current market volatility that may not seem prudent, but just imagine if you'd invested a typical down payment amount in the stock market ten years ago.
Renting gives you the freedom of time as well, with no yard or home maintenance projects. Renting is also lower risk because natural and other disasters the problems of the landlords.
Even though rents tend to increase by 3 percent a year, unexpected maintenance costs or sudden property tax hikes don't concern you either.
Relocating to Roanoke, VA? You should look at WestWind Apartments.