Should You Buy or Rent? The Real Numbers Behind Your Decision
If you're tired of paying rent every month and wondering if you should buy a house instead, you're not alone. I get this question all the time from clients who feel like they're throwing money away on rent.
But here's the truth: buying isn't always the right move. And renting isn't always "wasting money." Let me walk you through how to figure out what makes sense for your situation.
Why This Decision Feels So Confusing
Everyone has an opinion about buying vs renting. Your parents probably tell you to buy because "rent money is dead money." Your friend who just bought a house says you're crazy for waiting. Meanwhile, you're looking at home prices and wondering how anyone affords this.
The pressure is real. But this decision isn't about what other people think - it's about your money, your life, and your specific situation.
The Real Cost of Buying vs Renting
Most people only compare their monthly rent to a mortgage payment. That's like comparing apples to oranges.
When you rent, you pay:
Monthly rent
Renter's insurance (usually $15-30/month)
Utilities
When you buy, you pay:
Mortgage payment (principal and interest)
Property taxes
Homeowners insurance
HOA fees (if applicable)
Maintenance and repairs
Utilities
Here in Forest Grove, a $500,000 home with 20% down might cost you:
Mortgage payment: $2,100/month
Property taxes: $350/month
Insurance: $120/month
Maintenance budget: $200/month
Total: $2,770/month
That same house might rent for $2,200/month. So buying costs you $570 more each month - but you're building equity.
When Buying Makes Sense
You're planning to stay put. If you'll be in the area for at least 3-5 years, buying starts to make financial sense. The closing costs and transaction fees get spread out over time.
You can afford the down payment without emptying your savings. Don't use every penny for your down payment. You need emergency money left over.
Your housing payment (including taxes and insurance) is less than 28% of your gross income. This keeps you from being house poor.
You want control over your space. No asking permission to paint walls or get a dog. You can renovate, landscape, and make it truly yours.
When Renting Makes More Sense
You're not sure about the area. Maybe you just moved to Forest Grove for work. Rent for a year, get to know the neighborhoods, then decide where you want to buy.
Your finances are still unstable. Job changes, debt payments, or irregular income make homeownership risky. There's no shame in waiting until you're financially solid.
You don't want the responsibility. When the furnace breaks at 10 PM in December, that's your problem as an owner. Some people prefer calling a landlord.
The math doesn't work. In some markets, renting is genuinely cheaper when you factor in all costs. Run the real numbers for your situation.
What I Tell My Forest Grove Clients
I've seen people rush into buying because they felt pressure, and I've seen people wait too long and miss opportunities. Both can be mistakes.
The families who are happiest with their decision usually:
Ran the actual numbers for their situation
Had 6 months of expenses saved after their down payment
Knew they'd stay in Forest Grove for several years
Could afford the payment comfortably, not just barely
Questions to Ask Yourself
Can you afford 20% down plus closing costs plus 6 months of expenses? If not, keep saving or consider programs for lower down payments.
Do you have stable income? Job security matters more when you have a mortgage.
How long will you stay? The longer you stay, the more buying makes sense financially.
Do you want the responsibility? Homeownership means maintenance, repairs, and property taxes. Some people love that control. Others don't.
Your Next Step
Don't let anyone pressure you into buying or renting based on their situation. Look at your own numbers, your own plans, and your own comfort level.
If you're leaning toward buying in Forest Grove, let's run the real numbers together. I can show you what homes in your price range actually cost per month, including all the hidden expenses most people forget about.
Ready to see what homeownership would really cost you?
Call me at (541) 592-4682 or email misscilicia@outlook.com. We'll sit down and go through your specific situation - no pressure, just honest numbers so you can make the right decision for your family.
