Module 1: Renting vs. Buying - Deciding What's Right for You
Module 1: Renting vs. Buying - Deciding What's Right for You
Lesson 1: Renting vs. Buying Basics
Lesson Objective
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Understand the pros and cons of renting versus buying a home.
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
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Assess your readiness for homeownership based on finances, lifestyle, and goals.
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
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Apply decision-making tools to determine the best option for your situation.
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
Buying or renting? which is right for you?
Whatever it is, the way you tell your story online can make all the difference.
On Renting
The trends reveal that younger people face more barriers to homeownership, including high home prices, elevated mortgage rates, and slower wage growth relative to housing costs. If you're looking for a graphical reference, the U.S. Census and resources that’s perfect
On Buying
The trends reveal that younger people face more barriers to homeownership, including high home prices, elevated mortgage rates, and slower wage growth relative to housing costs. If you're looking for a graphical reference, the U.S. Census and resources that’s perfect
Ownership Rates
The trends reveal that younger people face more barriers to homeownership, including high home prices, elevated mortgage rates, and slower wage growth relative to housing costs. If you're looking for a graphical reference, the U.S. Census and resources like Realtor.com provide clear visualizations and detailed breakdowns by age group
Pro’s of Buying Property
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Building Equity
Each mortgage payment contributes to owning the home, building your net worth over time.
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Long-Term Investment
Real estate typically appreciates in value, providing potential for significant financial growth.
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Long-Term Stability
Owning a home offers stability in housing costs (especially with a fixed-rate mortgage) and a sense of permanence.
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Personal Customization
You have complete control to modify, renovate, or decorate the home as you wish without landlord restrictions.
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Great Tax Benefits:
Homeowners may deduct mortgage interest and property taxes, reducing overall tax liability.
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Pride of Ownership
Owning a home provides a sense of accomplishment and personal satisfaction, as well as a place to call your own.
Con’s of Buying
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
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It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
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It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
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It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
Questions to Ask when Buying
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Do you have savings for a down payment, closing costs, and ongoing expenses like property taxes, maintenance, and homeowners' insurance?
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Are you looking to build equity, have stability, or customize your living space? Understanding your motivations helps clarify whether buying is the right move.
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Renting often comes with fewer responsibilities (like maintenance) and may include amenities like pools or gyms. Does this align with your preferences?
A 2019 report from Thumbtack and Zillow found that first-year homeownership costs, including property taxes, maintenance, and closing costs, average $14,155-$15,405.
Pro’s of Renting Property
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Flexibility to Move
Renting allows you to relocate more easily, which is ideal if your job or lifestyle requires frequent moves.
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Lower Upfront Costs:
Security deposits and initial fees are much lower than a down payment and closing costs for buying a home.
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No Maintenance Responsibilities
Landlords typically handle repairs and maintenance, saving you time and money.
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Predictable Monthly Costs
Rent payments are usually fixed for the lease term, making budgeting straightforward without surprise expenses like repairs.
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Access to Amenities
Many rental properties include perks like pools, gyms, and security without extra costs to you.
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Reduced Financial Risk
You’re not tied to market fluctuations or property value changes, which protects you from losing money in a downturn.
Con’s of Renting
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
-
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
-
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
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It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more.
Questions to Ask when Renting
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Can you afford the monthly rent comfortably while saving for future goals? Consider upfront costs like a security deposit and moving expenses.
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If you foresee staying for a short time (e.g., less than three years), renting may be more practical due to its flexibility to move and re-locate easily.
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Renting often comes with fewer responsibilities (like maintenance) and may include amenities like pools or gyms. Does this align with your preferences?
Activity: Scenario Analysis
Read the following Profiles.
decide whether renting or buying is the better choice for each individual.
Alex
Age: 25
Job: Software developer who travels frequently for work.
Financial Situation: $3,000 in savings, no debt.
Goal: Loves exploring new cities and isn’t ready to settle down.
Taylor
Age: 35
Job: Teacher with a stable job in their hometown.
Financial Situation: $50,000 in savings, pre-approved for a mortgage.
Goal: Wants to settle down in one city and raise a family.
Ashley
Age: 30
Job: Teacher with a stable job in their hometown.
Financial Situation: $15,000 in savings, not-approved for a mortgage, credit card debt.
Goal: Wants to settle down in one city and raise a family.
Your Task:
Use the Renting vs. Buying Worksheet to analyze Alex, Taylor, and Ashley’s situations.
Decide which option—renting or buying—is better for each person.
Reflect on your answers: How did their finances, lifestyle, and goals impact your decision?
Wrap-Up and Reflection
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What did you learn about the trade-offs between renting and buying?
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
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Which pros and cons resonate most with your current situation?
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
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How ready do you feel to make a decision about renting or buying?
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.