43. Should I Buy or Rent?

‍

‍

In this episode, I tackle the frequently asked question of whether to buy or rent in a new location, which is especially pertinent for military families or those with jobs requiring frequent relocations. I cover essential considerations such as mortgage interest rates, down payments, and financial health. Using NerdWallet's calculator, I demonstrate how to evaluate these factors, offering a case study of a client's situation. I also explore the impact of interest rates, transaction costs, and the amortization schedule. Lastly, I discuss how financial stability may influence the decision to rent or buy, emphasizing the importance of personalized advice based on one's unique circumstances.

‍

Key Takeaways:

• How long should I stay in a place if I choose to buy?

• How can I take advantage of the different financial tools, like a VA Loan, to help me make my decision?

• How does the interest rate and down payment affect the amortization schedule?

• How to factor in savings, debt rate, and other budgeting factors into a decision to rent or buy a home.

‍

Key Timestamps:

(00:00) Introduction: Buy or Rent? 

(00:51) Calculating Cost to Rent vs Buy

(01:43) The Impact of Interest Rates 

(03:55) Down Payment Considerations 

(05:46) Client Case Study 

(07:35) Conclusion and Final Thoughts 

(08:13) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, cost to rent, mortgage payments, interest rates, amortization schedule, NerdWallet 

‍

Mentions:

https://www.nerdwallet.com/ 

‍

More of Baskin Financial Planning:

Think you might be a good fit form my firm? ⁠⁠⁠⁠⁠⁠Join the waitlist here!

Questions or comments, drop me a note at: ⁠⁠erik@baskinfp.com⁠⁠

‍

‍

‍