Well, it’s time to choose your dwelling. The biggest decision on the table is how exactly you obtain your residence - do you rent your new home, or do you get a mortgage and purchase?
There are advantages and disadvantages to both, but at the end of the day, it really comes down to how long you plan on staying there. If you are wanting to stay in a house for a long time (say, more than a couple of years), you will come out on top by getting a mortgage and purchasing the home. However, if you’re looking more on the short term, renting is definitely for you.
Renting is nice, because there are no closing costs, and no down payment - maybe just an inexpensive deposit that will be refunded to you when you move out. In many areas of the world, the monthly cost of renting a home isn’t significantly different from a mortgage payment. Remember, when you own a home, you also have to pay costs such as home insurance, mortgage insurance (if applicable), and taxes every year. Also keep in mind that your closing costs (which you never get back) will run in the thousands of dollars range. If something breaks, nobody is going to fix it for you. Finally, don’t forget you will have to pay up to 6% of the home’s price in real estate agent fees when you do eventually sell.
On the other hand, owning your home makes sense if you plan to stay for a long time. Remember, though it takes a while to add up, those monthly payments do contribute to your equity in the home. Over time, you own more and more of your home, and will get cash when you go to sell - or, if you pay it long enough, eventually no longer owe on your house. When renting, every payment literally buys just one more month. Other than that, you are just throwing your money away. Also, if you are renting, you will be restricted to what modifications you can make to the house, and even what types of pets you can have - if any at all. If you do make renovations, you won’t see a cent of it back, since you don’t own the home.
In summary, if you’re planning on staying in your house more than 3 to 4 years, go ahead and consider purchasing it. Otherwise, it might make the most sense to just rent.