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4 How long do you plan to stick around? If you're buying a home, you should plan to stay there at least two to three years if you don't want to lose money. Remember, there is a cost to buy and sell a home. When you're buying, you have closing costs and a down payment. When you're selling, you'll need to factor in the real estate sale commission, which is typically 6% of the sales price. Considering that homes appreciate from 4% to 5% a year, you might need to live there for a few years to cover the cost of a sale. If you're confident you'll stay in place for five to 10 years or more, that's when you'll find the prospect for meaningful wealth creation. If you're not sure you can commit to a home for at least 24 months, renting and setting aside any money you've saved for a down payment and closing costs is a better idea. It's better to save that money in the meantime and have it available when you're ready to buy a home. 5 How important is the freedom to renovate? If you've got the itch to tear down walls, try your hand at tiling, or experiment with a bold new wallpaper, you're better off buying than renting (unless you have a very open- minded landlord). Owning a home gives you the freedom to renovate and decorate to your heart's content. For those who greatly value the concept of ownership or plan on putting sweat equity into a property, ownership may be a better path. 6 Are you up for the maintenance? One major perk of being a renter is that your landlord is likely responsible for most of the maintenance and chores that homeowners have to deal with. When one goes from renting to owning, they are responsible for maintaining the property, which can be more expensive than many realize. From standard upkeep like replacing smoke detectors and shoveling snow to major issues like pipes bursting and foundation problems, homeownership comes with a long to-do list, and the maintenance can be as costly as it is time-consuming. 7 Are you comfortable with some market volatility? The housing market fluctuates, and although it has historically been an excellent investment in the United States, house prices do go down sometimes. If you're uncomfortable weathering inevitable ups and downs of any market, renting may provide more peace of mind, but keep realize that it is not building any wealth for you and you can't take depreciation on your taxes. All pro's and con's, in the end it will be up to your goals and financial situation to determine the best path for you.