The Blog ofBeverly James

Owning vs Renting

It goes without saying that a house purchase is a big deal. Owning a home is a huge milestones you pass in your journey through life. Being able to have something that you own and can do with it what you please is an amazing feeling. With that being said, both renting and buying can have their advantages. It really depends on your circumstances and where you are in life. Do you think your ready for the responsibility of owning your very own house? If you’re buying it with a partner, can your relationship handle the extra stresses of dealing with a new house? Do you, yourself, even know what you want in a house? Do you know what area you want it to be in? If something breaks, are you going to know what to do?These are tough questions but you should definitely be asking them before signing any contracts!


Unless you are buying a house outright, which let’s face it, who has at least 200 grand just lying around, you’re going to need a loan. If you are a qualified US veteran, you aren’t required to put down a down-payment. Most people will have to put down some money up front, typically 20 percent, and pay the rest off monthly over a span of 5 to 30 years, depending on how well off you are. It takes time to save up that kind of money. It also takes time to fix, or even build up, your credit but it is doable. It’s popular belief that if you’re credit isn’t perfect you can’t buy a house and that just isn’t true. If you’re applying for a FHA loan, you’re credit score can be at least 580, but in some cases they will except lower scores. For a Fannie Mae or Freddie Mac loan, your credit score must be at least 620.

If you don’t have the funds to put down a down-payment or to cover closing costs, then renting could be the better option while you’re saving up. Another nice thing about renting is that if something breaks down, you don’t have to pay for it. Some places even have 24/7 on-call maintenance, which is really nice.

The downside is, in most areas the rent will increase every time you renew your lease. Personally, I hate having to pay more to live in the same spot. I’d much rather be able to build equity and have a safety net myself.


If you have a job that often requires you to relocate, renting would probably be better for you. Most people live in their houses for at least 5 to 7 years. It’s important to find a spot that you feel comfortable in. You also have to ask yourself if you’re willing to devote your time and money into keeping up the house. It can be fun but also a lot of work. Buying a house requires you to think ahead. It would be in your best interest to sit down with a pen and paper, write down your goals, and explore your options. There’s a handy mortgage calculator located on the home page of my site that can give you a general idea of what your monthly payments would be like. Feel free to download my app as well. If renting is cheaper than a mortgage payment, you might want to wait to buy a house. Put the extra money toward college expenses or vacations. Owning a house isn’t for everyone. It’s up to you to decide what is best for your lifestyle.