A Millennial Crossroads: Renting Vs Buying A Home

With rising rents and rising interest rates, what is the best option?

January 4, 2019

Dreamstime

I've written about this before but it's coming up again because now, it's really becoming an issue.

Do I continue to rent an apartment that is too small for me in an ideal location or do I finally buy a house that I don't really love in an area far from work but I can afford it more?

Logically, buying a home is better in the long run if you purchase in the right area and sell at the right time, you'll make a profit given certain circumstances, I totally understand that and it really is appealing to me. 

However, with what's available in my price range in the area and surrounding areas, I'd either have to live well outside my ideal location and commute 45+ minutes to work every day, or, I'd have to purchase a smaller, older home and hope I make enough upgrades and have enough equity in the home in a few years to turn around and sell to eventually get into my ideal location and shorten my commute and cut down on tolls and driving expenses.

So, maybe renting is the way to go until I can compromise and only be 20-25 minutes from the office in a home slightly bigger but not quite my "ideal" location.

However, another issue I see is that apartments are really tapping into the "luxury" market. 

Almost every new apartment complex built is a "luxury" apartment complex allowing higher rents to be charged for granite counters and faux wood floors. And older complexes are renovating their units to follow the same plan.

Average rent in Orlando went up 4% from last year with $1,472 being the average rent. That's a mortgage payment.

Granted, in an apartment, if something breaks there is a maintenence department to fix it, but at the end of the day, my money pays someone else's bills as opposed to my own.

So this is where I sit. A millennial who wants to buy a home, is ready to own a home, but with the state of the market right now, isn't really able to get into something he'd be happy with without stretching the bank. And sure, I could live 45 minutes from work and commute every day, but hearing from plenty of co-workers who complain about that daily commute, it's not something I'm willing to gamble on just yet.

My lease expires end of April and I need to make a decision soon and I'm just stuck. So any advice is welcome! :)

Thanks for reading my thoughts and allowing me to vent. Hopefully I make the right decision.