After two people tie the knot, the next logical step is buying a house – right? While this has been an American standard for decades, it’s not always the best immediate option.
Owning property is incredibly beneficial, it’s true. But newlyweds should consider the advantages of renting as well. Doing so may be the better choice in the long run.
Consider these three points before you and your spouse make your next move.
1. Your Future
Some partners are ready to settle down and start a family as soon as their honeymoon is over. However, other married couples don’t have that mindset. They want to travel or focus on their careers first. Either way, life goals matter when it comes to deciding.
If you’re after freedom, go for a rental. Leases tend to offer more flexibility than mortgages. For those who need to move around often, this is the central appeal. On a similar note, many newlyweds aren’t sure about where they want to live.
Because they aren’t rooted in a location, couples who rent can experience what a neighborhood’s like and decide if it’s right for them. Then, they can opt to remain there permanently.
Spouses who envision longevity in one spot may want to buy. People typically have to stay in a house for at least five years to make the purchase worth it. You’re also able to customize the property to your heart’s content, as you’re the owner. Privacy is another bonus in this sense. If you want a place you can grow into, a home is likely the better selection.
Newlyweds who want a bit of time to themselves should choose to rent. Those who are more secure in a single location can give buying more thought, though.
2. Your Finances
This factor is the most significant. A home will likely be the most substantial investment you’ll ever make, so it’s necessary to see if it makes financial sense for you and your partner.
Rentals are often more appealing to those who don’t have perfect finances. You don’t have to make a sizeable down payment to live in an apartment. Maintenance is up to the landlords, which means you won’t endure surprise costs.
Also, loans aren’t required to afford an apartment, so your credit score doesn’t necessarily need to meet a certain threshold. Renting now will allow you to save up the right amount of money for a home later.
Purchasing a house is the cheaper option over time. Though you’ll have a monthly mortgage payment, that expense goes away at some point. Unlike an apartment, your home becomes an asset that appreciates as the years pass.
You’re also able to update this property as you see fit, which may improve its value. If your finances are in the right spot, buying could be the best move. Take a careful look at your situation before you choose either option.
3. Your Lifestyle
Like your future aspirations, your current lifestyle plays a role here as well.
Do you and your spouse spend a lot of time at the gym? Do you love to lounge around a pool in the summer? These days, apartments offer tons of amenities included in the monthly rent. You may find that these elements are at the top of your list.
Similarly, homes located centrally in major cities are costly. If that kind of location is a priority, you’ll want to look into rentals more so than houses.
Maybe what you desire is a ton of outdoor space. You want a front porch and a place to grill out and entertain guests. These aspects can be hard to find in a rental property. The same goes for other perks, like garages and storage space. Do you own pets? Some landlords won’t accept them. Depending on your needs, buying allows for less restriction.
Apartments and homes each come with various advantages that will be more or less relevant to how you live as a couple.
Renting vs. Buying — Don’t Make a Hasty Decision
Marriage is a milestone. Once you wed that special someone, there’s no denying you want to choose the best home right away. Before you jump in, however, take the time to figure out if renting or buying makes more sense.
Thinking hard about this decision will save you money and stress down the line.