Becoming a homeowner is a life goal for many adults. It even acts as a symbol of financial stability and independence for many. While there is nothing wrong with aspiring to own a home, the reality is that it is not the right choice for everyone.

Renting is not usually seen as ideal, but there are times when it is the most practical choice. Especially with rising home prices and taxes, renting a house is looking more and more preferable today.

Sure, there are many who will counter this by saying that buying a house builds equity while renting does not, but there are various instances where renting can spare you from a life of overwhelming debt.

Ask yourself these questions to determine if renting is currently your best option:

Can You Afford to Purchase a House Today?

The primary concern you have when choosing to either buy a house or rent one is if you can realistically afford one with your current financial status and responsibilities. Renting can be a good choice in certain situations, but opting to buy a home when you are financially capable of it is a potentially great investment, too.

One way to check if you are in a position to buy a home is to approach several home mortgage brokers and learn about the typical rates for a home in the location you prefer. You should also compute the affordability of houses and your debt-to-income ratio.

Follow the 28%/36% rule, which recommends that you should not use more than 28% of your gross monthly income for home expenses. A maximum of 36% should also go into all your debt, which includes mortgages and other monthly payments. If this isn’t doable for you, then you may be better off renting instead.

Can You Manage the Additional Costs of Owning a House?

Mortgages are not your only concern when buying a home. Consider these additional expenses, too, when assessing if it is the right time to commit.

1. Utilities, Maintenance, and Repairs

The price of utilities ultimately depends on the size and kind of home you are living in. Usually, though, rental homes and apartments are smaller, so utilities will also cost less.

For maintenance and repairs, owning a home means being responsible for these, too. If you are a tenant, on the other hand, your landlord should be the one to take care of broken items in the home and do regular maintenance checks.

Renting a home is the better option when you can’t afford to take charge of your maintenance and repairs or do not have the time to do so.

2. Property Taxes

When you own a property, you also need to pay property taxes. The amount varies depending on where you live, but they usually come up to a hefty price since the taxable price is determined by the value of the property and the land on which it stands.

You steer clear of these computations and tax payments when you rent your home. These are responsibilities that landlords hold since they are the owners of the property you’re renting.

3. Insurance Policies

If you are a homeowner, then you need homeowner’s insurance. This safeguards your belongings and the physical structure of your property in the event of loss or damage.

Renters, on the other hand, need renter’s insurance instead. This accounts for the things you own in the home. Renter’s insurance is typically cheaper than homeowner’s insurance because it does not cover the physical property itself.

Do You Need Flexibility or Stability?

Put your current needs into consideration when weighing your options. Owning a home offers stability. It assures you of a place to live in for the long term, tying you to the neighborhood and location you choose. This is preferable for some, but may be a hassle to others who need more flexibility in their lives.

Buying a house limits you to locations where home prices are within your financial capacity. Renting, on the other hand, lets you shop more, as even expensive cities have homes with lower rent prices. It just takes effort to look around and find one that fits your needs.

Another great thing about renting is that you have more wiggle room to adjust your standard of living as needed. If it is time to downsize, uprooting yourself and moving to a different home or state is a simpler task than having a home that you can’t afford to pay for anymore.

Ultimately, there is no standard correct decision between renting or buying a home. It is a mix of your needs, financial capacity, and preferences to make the best decision.