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Homeownership, for example, typically comes with more upfront costs than renting.
The monthly payment can also be higher than rent, though that depends on quite a few factors.
If youre debating whether to buy or rent a home next year,here are some things to consider.
According to Rentcafe, the average cost of a 901-square-foot apartment is $1,751.
Renting costs about 38% less than buying a home on average across the U.S. ## Cost of Buying a Home in the U.S.
While the housing market has had its ups and downs, home prices tend to rise over time.
You have to look beyond just monthly payments.
All of these can add up quickly, said Roberts.
You might find yourself spending an extra $500 to $600 monthly when these costs are factored in.
So, confirm to calculate those additional expenses into your budget.
When buying a home, be prepared to pay certain upfront fees that dont come with a rental.
Some renters have to pay certain junk fees that increase the overall cost.
While you wont have interest to worry about, rent can still add up.
Say you rent an apartment for 30 years.
This doesnt include any additional or junk fees.
You also wont build equity.
I think there are circumstances in which renting can be more expensive than buying, and vice versa.
One is not always less expensive than the other, said Seamus Nally, CEO ofTurboTenant.
But I would probably say that renting often turns out to be less expensive.
When you rent, there are lots of things you are not financially responsible for.
Nally continued, Oven breaks and needs replacing?
Thats on the property owner.
If you are the owner, that means its on you.
That said, you might also want to look beyond the numbers.
But buying a home gives you the chance to build equity without the fear of rent hikes.
If youre still debating, fire off the numbers a few times.
Itll give you a very accurate picture of your financial situation and help you make an informed decision.
Caitlyn Moorheadcontributed to the reporting for this article.
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