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Renting is often viewed as wastingmoneyor not having serious goals.
Analyzing the renting versus buying dilemma can be challenging for many Americans.
These arefive times it makes sense to rent,according to Cruze.
Moving to a New City
Moving to a new city can be exciting.
You get to experience new things, make new friends, and have increased opportunities.
If You Have a Big Life Change
Significant life changes are often fraught with emotions and change.
For example, a divorce may lead to significant financial changes, new locations, and new realities.
Renting short-term gives that time to appraise things before making amore permanent decision.
If You Still Have Debt To Pay Off
Debt, particularly high-interest debt, can be suffocating.
Cruze promotes waiting until all debt is paid off before buying a new house.
Debt may leave you open to problematic budgetary situations, especially when an emergency arises.
This is of particular importance when considering mortgage payments are still higher than rent.
Spending less on rent makes additional funds available to eliminate debt and be in a better position to buy.
Unless you have the skills to make repairs, an emergency fund is necessary to provide afinancial safety net.
Cruze recommends having a fully funded emergency fund before entertaining the purchase of a house.
While renting, a landlord will cover any major repairs.
Thats not so for homeowners.
Most experts recommend having at least three to six months worth of living expenses saved for emergencies.
Not having this saved can result in possible debt when the unplanned arises.
This frees up funds to apply toward retirement planning and other long-term goals.
Renting versus buying is an important consideration in your personal finances.
Renting may feel like its throwing away money, but thats not always the case.
You dont want to end up being house-poor or hindering other goals.
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