RENT VS BUY: WHEN DOES RENTING MAKE SENSE?

Buying a house, according to age-old wisdom makes more financial sense and many people will agree. But a lot of people still get puzzled by the question “should I rent or buy a home?”. It’s more or less a no-brainer. You should buy a house if you have the means. Essentially, you’ll need to assess two things:
Your finances
Your long term plan
So, in this article we look at buying a home from these two standpoints and when it wouldn’t be advisable to buy a home.
1. Not enough cash
You don’t want to buy a house only to forfeit and accept defeat two years later. If your credit report shows that you do not qualify for ‘buying’, it may be a wise move to delay purchasing a new home, rent a home and use that time to repair your credit. This could help you get a better interest rate on your mortgage later on.
Renting is an option for you when you don’t have enough to cover the down payment on a new home. Renting is also the better option if you find you do not have enough to cover additional costs of owning and maintaining a new home.
2. Your Life-style.
Proudly owning a house is a huge obligation, and based upon your lifestyle, it's possible you'll be better suited to rent. Owning a house suggests you are responsible for each of the repairs, garden work, and maintenance of the house. Depending on your lifestyle, it may be in your very best interest to rent.
Also if you’re in a job that requires you to move away in a couple years or where your position isn’t certain, it is better to rent. Owning a home for a short period of time may end up costing you money. Homeownership is most effective for those who will stay in their house for at least a number of years, since selling a home is usually costly as a consequence of likely reducing property values, closing costs, and real estate agent costs.
4. Where you reside
If you live in an area where home prices are declining, it may be benign to perpetuate renting until prices bottom out. In some areas, rental rates are much more plausible than home prices, and renting may be the best financial option. So, know your market before opting to rent or buy real estate.