These days both are expensive propositions, especially in the Bay Area. According to a recent report by CNBC News, it is currently cheaper to rent a home than to buy a new one. Which is right for you?
- Affordability: A good rule of thumb is to plan on spending 30% of your monthly income on the total housing cost.
- Long-term: Where do you plan to be in five years, career-wise? Buying a home is a huge investment; will you be able to afford it in five years?
- Maintenance: Upkeep of a house is not cheap and must be factored in to monthly expenses.
- Emotions: Just because everyone in your circle seems to be buying a home doesn’t mean it’s the best decision for you at this time.