Every single person needs a place to live. Choosing a place to live and the kind of housing the person wants often requires a lot of thought and investigation. Some people may decide that renting is best for their needs at the present time. Others may realize that it makes sense for them to buy a home right now instead of renting. Multiple factors go into this decision. It's a good idea to pay close attention to factors such as the person's relationship status, five year plans and their current financial circumstances. It's also crucial to know about local real estate costs, property taxes and the regional job market. Buying a home is one of the largest fiscal commitments every homeowner needs to make. Under certain circumstances, renting a place to live makes more sense.

Stage of Life

All people go through different stages in life. As people grow up, they may move away from their present area to attend college or take a new job. People have different housing requirements at each stage. A college student living off campus may merely need a single room in a convenient location. Someone who is planning a divorce and needs a divorce attorney Salt Lake City may need a much larger home for her children but also needs a space she can afford with ease. An elderly couple planning to retire soon may be looking for a small condo with an extra bedroom they can offer to visiting children in a location with lots of activities geared to their age group. Each person should consider what is right for them right now. They should also think about where they might be in a few years. A married couple planning to have a baby soon will need more space that's easier to get by buying a home rather than renting.

Financial Circumstances

Finances also play a strong role in determining if renting or buying makes more sense for each person. Most buyers need to take out a mortgage in order to buy the home they want. Before doing so, buyers can expect close examination of their finances and their credit score. A potential home buyer will often need to put in a down payment that may be thousands of dollars and take years to save. Renters may not face the same fiscal scrutiny. Many landlords require only a month's deposit of a few hundred dollars. Landlords also take care of costs that a buyer must assume on their own. For example, if something goes wrong with home's boiler or the roof, the landlord is the one faced with the expense of fixing it. In contrast, a homeowner must take responsibility for such expenses.

Types of Home Buying Markets

Buying a home also means that the homeowner must work with factors such as current mortgage rates and the overall regional economy. Homes that are selling fast at the asking price or above create a seller's market. If homes are taking longer to sell, this is buyer's market. Buying in a seller's market can be difficult. A potential buyer may be better off financially by waiting until the housing market experiences a market correction. Buying a home also means varied kinds of costs that renters do not face. A home buyer will need to pay for closing costs such as the cost of a home inspection, attorney's fees and the cost of any mortgage points. If the person is planning to move to a different area in a few years, they may not be able to recoup such costs. In that case, it can make more fiscal sense for them to consider renting for now until they're planning to stay in one place for a longer period of time.

Each person should think about such factors in their lives right now and decide what makes sense for them financially.