Renting vs. Buying a Home: 6 Things You Should Consider

April 26, 2017

Buying a home is kind of a huge effing deal. But we’re adults now, so it’s time to talk about the pros and cons of buying a home vs. renting a home. Here are six things you should consider -- plus, we’re giving advice on how to make friends in college, why you should watch Girlboss on Netflix, and whether we’d rather have an engagement ring or a big house.

Renting vs. Buying a Home in Arkansas (From Business Insider):

  • Monthly rent in Arkansas: $1,050
  • Monthly mortgage in Arkansas: $769

Things to Consider

  • Are you planning on moving in the next 5-10 years? Renting offers more mobility.
  • Are you planning on starting a family soon?
  • Can you make a down-payment of 20%?
    • “If not, that generally means you’ll be charged a higher interest rate. You’ll also likely have to pay mortgage insurance, a monthly fee that ranges from about $50 to $500 and goes directly to an insurance company protecting the bank’s interest—not yours.” LearnVest
  • Do you have a good credit score?
  • Are you down to mow the lawn, upkeep, and fix things around the house? All extra expenses.
    • Some of that comes with renting a house, too.
  • Is renting keeping you from doing something that you want?
    • Are you someone who really loves personalizing their home?
    • Do you want a dog but live somewhere that doesn’t allow pets?

Tools to Help You Decide:

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0

https://www.zillow.com/rent-vs-buy-calculator/

http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/

Dear HBIC

  • I’m a sophomore in college and I haven’t made any friends. This is supposed to be the best time of my life? But how do I meet people and hang with them?
  • First of all, you should know that making friends in college is important because 1) you're building your network; you never know who could be a good connection in the future, and 2) making friends only gets harder AFTER college.
  • Get out of your comfort zone. Go out. But not just to parties; join clubs and organizations, ask people to lunch, study at the library instead of in your dorm room. Oh, and always leave your dorm room door open.

Would You Rather...

  • Have a little ring and a big house or a big ring and a small house
  • Be Lena Dunham’s BFF or Chrissy Teigen’s enemy

What We’re Loving This Week

  • Elise: KitNipBox! My cat, Laz, loves KitNipBox, but we took the April box to the Little Rock Humane Society and gave the toys and treats to the kitties there. KitNipBox is also cool because they donate a portion of proceeds every month to animal-specific charities, including The Paw Project, Animal Care and Control of NYC, Brooklyn Animal Action, and the San Francisco SPCA.
    • ALSO: NECTAR mattresses, coupon code: ESL100.
  • Meleah: Girlboss on Netflix. Love it or hate it, it's worth the watch.

Boss and/or Adulting Moment

 

  • Elise: Last week was chaotic and I didn’t get anything actually important on my to-do list done. So I worked Saturday to get caught up, and this week has been SO much easier.
  • Meleah: I went to the retirement party for my honors college’s dean. It just seemed like something adults do.

If you have more questions about renting vs. buying a home, email us at hitusup@earnspendlive.com or use #JustEvesdropping on Twitter!

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