The Ultimate Question: Rent or Buy?

The biggest benefit of buying a home is longevity — chances are, you’ll be in the same abode 10 or 20 years later. Unfortunately, that’s also one of buying’s biggest inconveniences.

Renting is a good idea for someone who thinks they might be moving in the near future, but in the long-term, it’s still more expensive than owning a home.

The New York Times constructed a calculator to determine whether renting or owning a home would be more expensive. According to the calculator, if you can find a place to rent for less than $961 a month, you’re better off renting. But it’s a tough call, at least in financial terms, when the average rent is $1,083.

How can you figure out which is right for you? It’s largely a question of how long you’re planning to stick around.

• How long you will stay: Time magazine says that any amount of time less than five to seven years could cost you.

• How stable your job is: not only because you might want to move for your job, but also because many mortgages require steady employment.

• How much is it worth (besides dollars): Neil Irwin at the New York Times pointed out that if you own a home, you don’t have to worry that the landlord will sell or raise rents without your knowledge.

And of course, you have to think outside the (cash) box — painting the shutters as you please, regrouting your bathroom any time you want, or having some extra room for a growing family might be worth its weight in gold.