After you take the training wheels off your bike and learn to ride it, you’d never consider putting them back on again. Similarly, once you’ve owned a home, you might think you’ll own a home from now on; but there may be some situations where it makes sense to rent again.
Big shifts in a person’s life like a divorce, death of a spouse, empty nesting or a temporary transfer to a new city are certainly things that may warrant renting, at least temporarily, until you know what your long term plans are.
A good example of this would be a move from the suburbs to an urban, downtown location. Before selling your home and purchasing a condo, it might be enlightening to rent an apartment to see how you’ll adapt to the changes in that style of living.
But if your situation is not a temporary one, buying a home may be the better financial decision. The average homeowner stays in a single family home for 12 to 13 years. During that time, the sale and purchase expenses incurred with real estate are absorbed. How long you need to stay in a purchased home for those expenses to make sense will depend on multiple factors. The New York Times has published a great rent verses buy calculator that helps you compare those costs.
Like any move, especially one coordinating the sale and purchase of two homes, there are a lot of issues involved. Feel free to contact me for information that will help you to make better decisions on whether to buy, sell or rent again.