Home > 2014 > Mortgages > 4 Signs You Should Keep Renting

4 Signs You Should Keep Renting

Advertiser Disclosure Comments 2 Comments

One question I heard frequently throughout my 20s was, “When are you going to buy a house?” Some believed I was already missing out on the benefits of homeownership while others thought with my career constantly taking me to new cities, I was better off renting forever. Many people grapple with the decision of whether to buy or rent a home.

While there are pros and cons to each and the decision is ultimately personal, here are some signs you should keep renting.

1. No Savings

Sometimes it’s tempting when you hear of low down payment options for buying a home. But if you don’t have an emergency fund yet or if purchasing a home would drain all of your savings, you probably aren’t ready. Homeownership comes with expenses — you never know when a hot water heater will need replacing — so you want to make sure you have money set aside for home repairs on top of the usual living expenses.

2. Uncertain Future

Signing a mortgage means you are agreeing to pay money every month to own that home. If you have a stable job that you love, this can be great. But if you are unsure whether you will have your job for the next few years, you may want to wait. Even if you’ve just gotten a new job and you are very excited, it may be wise to get a feel for the company before you jump into homeownership. You’ll want to know whether the company is hiring or laying people off and what its financial outlook is to determine your own job security.

I kept renting throughout my 20s because I wasn’t sure where I was going to be living. My career had me moving around the country with very little notice. I stayed in one state for nine months and another for only six months. I wanted to be able to accept new assignments and opportunities that came my way without worrying about selling a home. If you aren’t certain where you will be in a few years, or perhaps even months, you might want to keep renting for now.

3. No Research

Buying a home is a big decision. You’ll want to learn what you can about the local housing market, including the pricing trends, the school district and the property taxes. Another thing to consider is how well you know the home itself. Sure, that roof looks good, but an expert may tell you it needs to be replaced soon. That’s not the kind of surprise you want after you’ve spent a lot on a down payment. Don’t rush into homeownership without doing your research. Think about how much you regret that impulse buy at the mall and multiply it by … a lot!

4. Fear

Yes, you have to face your fears. But if the thought of buying a home makes you so nervous that you are making yourself sick or having trouble sleeping, you need to explore the reasons before you move forward. Perhaps you aren’t sure this is the right time or the right house. Maybe you don’t want to take on a long-term loan like a mortgage or you worry about being tied to one location. Before you take on a mortgage, it might be best to determine what is truly bothering you.

More on Mortgages and Homebuying:

Image: iStock

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • lux8x


    Thanks for the tips. I’m facing a decision now, and I don’t know what to do. One of my ideas is to both keep renting and also buy. I know it sounds confusing, but let me explain better.

    I’m currently renting a house, worth $400,000, which I rent for $1100 a month (I think it’s a very good deal).

    I want to buy a house, but I’m not very sure about buying the one I’m renting. The down payment would be of $80,000+, and the monthly payments would be over what I’m paying in rent.

    So I’m thinking on buying a cheaper house to rent to other people, and keep renting the one I’m living in. I could buy a cheaper house for $120,000, with a down payment of $40,000, I would have to pay only around $500 for 30 years. I could rent it easily for at least $800, which would increase my income in $300/mo while I’m also getting a house.

    What do you think? I’m trying to find information about this, but no one ever talks about buying a different house than the one one is living in. Is it because it’s a crazy idea? :p Or do you think it could make sense on same cases?

    I’d love to hear your opinion about this.


Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.