Hey everyone,
I keep hearing the classic question: Should I rent or buy a home?
It’s a tough decision and honestly depends on a lot of money, lifestyle, plans, and even where you live.
Renting is great if you want flexibility, lower upfront costs, and don’t want to worry about repairs. But you’re basically paying someone else’s mortgage and can face rent hikes.
Buying means building equity and having control over your space, but it comes with big upfront costs, maintenance, and less freedom to move quickly. What’s worked for you?
Are you renting now and thinking about buying? Or did you buy and wish you’d rented longer? Especially if you’re in Illinois, local taxes and programs can tip the scales. Would love to hear your experiences and advice!
I agree with your take. I would lean toward renting if it’s for a short-term, 1-2 year temporary situation. For example, if you are in medical school in your last year, you wouldn’t want to buy a home since you don’t know if you will still be in that city or state the next year. Another time to rent would be if you are building up your buyer’s profile and you need to fix things in your credit report, or increase your income on your tax returns.
Otherwise, buying typically wins because of two things people don’t think about; Amortization and Appreciation. You’re paying down your own mortgage and your home is gaining equity. In the future you can utilize the equity you have to do many things. Buying a house is like having extra tools in your box.
Good question
Renting vs. buying isn’t emotional, it’s financial and personal. Run the numbers. Factor in opportunity cost, local taxes, expected years in the home, and your own goals.
In some Illinois towns, buying is a steal. In others, taxes wipe out all the equity you think you’re building. It’s not one-size-fits-all.
If you’re under 35 and not settled into a career or family setup yet, I personally think renting and investing aggressively on the side is underrated.
I thought that I’d rent forever until my landlord raised my rent 15% in one year. So I bought a small condo in 2022, and now my mortgage is actually lower than my old rent, and fixed! It’s not perfect, but the stability is worth it.
I bought my first place in the suburbs of Chicago two years ago. Honestly, I love the stability and the fact that I’m building equity, but property taxes here are no joke.
If you’re on the fence in IL, check your county’s programs, some offer down payment assistance or tax relief for first-time buyers.
This is a case by case situation. If you’re a student and not sure where you’ll settle then rent for a year or until you’re done from school and then consider buying. If you got a job transfer and you’re not sure if you’ll stay then rent for a year or two. Having that flexibility can be a piece of mind.
If you know where you’d like to settle 2-5+ years then I would purchase a home and pay your own mortgage and build your own equity. If you decide to move and sell then chances are you’ll gain some profits. I always sit down and break it down for my clients so that they understand the options given. They often appreciate the hand-held and guidance.
I’m renting for now. With rates still high and inventory tight, I’m waiting for either rates to come down or prices to cool. I’d rather rent for another year and keep stacking cash than jump in too early and regret it.
Really thoughtful reply. Those add up fast when you’re in it for the long haul.
Completely agree, it’s all about the numbers and long-term goals. Definitely not a one-size-fits-all decision.
That’s a smart take. Renting and investing on the side can set people up big time, especially early on.
Appreciate the insight! Property taxes in IL are wild, but glad you’re seeing the upside in equity and stability.
That rent hike would’ve pushed me too! Sounds like buying ended up being a solid move, fixed mortgage is a big win.
Great points, love how you break it down by life stage. That flexibility in the early years helps people make smarter choices later.
Fair take. Waiting it out can definitely pay off, better to be patient than locked into something that doesn’t feel right.
100% - it’s not emotional
This was on the PBD podcast as well. As a Mortgage Advisor, I agree with this. You can use those extra funds and flexibility and invest in yourself and build yourself a better future!
For anybody that is on the fence or has any clients on the fence, check out my calculator on my website - “Rent vs Buy”
It has no strings attached, you won’t get bombarded with calls after. It’s a great tool to help educate yourself or your clients because you get to explain it to them (auditory learning) and they get to follow along (visual learning) simultaneously. This will lead them to be more empowered and confident when making decisions.
We had a closing today in our office; med student didn’t want to rent because they want to be stable for at least 4 years so they had their family help them buy and they got a mortgage.
I agree with this approach Sonny $