The Pursuit: Housing

Housing

Next, we’ll examine a critical aspect of maintaining physical and financial health: Housing. The decisions surrounding housing are some of the most important financial decisions you will make, so it’s important to understand them thoroughly.

Renting vs. Buying

Let’s first look at your two major options for housing.

1. Renting
   1. Pros: More flexibility for movement, lower upfront costs, and no maintenance responsibilities.
   2. Cons: Doesn’t build equity or assets, leaves you at risk of potential rent increases, and less overall stability.
2. Buying
   1. Pros: Builds equity, leaves room for potential home value appreciation, and provides more stability and control over living space.
   2. Cons: Higher upfront costs (down payments and closing costs), maintenance responsibilities, less flexibility to move.

Either option can be better for different people, it simply depends on your circumstances. Let’s say you’re a little younger and haven’t settled down with a family yet. It might be beneficial to rent, as renting will give you the flexibility needed to move forward with whatever the next stage of life brings you. On the other hand, let’s say you have a steady job and are ready to raise a family; it might be worth buying a home to provide stability and assured housing while raising kids. Next, let’s look at what you’ll be paying for.

Housing Costs

Housing is frequently the single largest expense for a household. It includes both rent/mortgage payments and property taxes, insurance, maintenance, and utilities. Here’s some more information about these key components

Tips for Managing Costs

Conclusion

That’s all the basics of housing out of the way. Housing involves many big decisions that can be very overwhelming. Remember to take it slow and start from big to small. Your first decision is typically going to be where you want to live. Then, use the rest of your life circumstances to determine whether you’re better off renting or buying. Then, evaluate how different options fit your preferred lifestyle and budget. Most importantly, be careful when finally signing the deal. If something feels off or wrong, be sure to seek council to make sure you’re making a fair deal.