Purchasing your own home is one of the biggest decisions most of us will ever make. For most of us, the decision to purchase a home will for better or worse have an enormous impact our financial futures and our lives. Although some people believe they’re wasting money by paying rent, the truth is far more complicated, especially for young people. For example, the lack of mobility created by owning your own home can seriously limit your future job opportunities by tying you to a particular community.

So how do you know if you should buy or rent your next home? Here are a few things you should consider.

1. Will you limit your career opportunities by purchasing a home in a particular community?
2. How long do you anticipate the home will fit your needs. It can take years to recoup the cost of buying a home versus renting one. In Las Vegas, the current breakeven point for owning a home is 1.7 years according to Zillow’s Breakeven Horizon Index http://www.reviewjournal.com/business/housing/report-break-even-horizon-las-vegas-homeowners-rises-latest-quarter.
3. Is the cost of owning a home more or less than renting one? This varies from community to community. When making this comparison look deeper than comparing the cost of a mortgage payment versus paying rent. Consider the cost of repairs a homeowner incurs as well. Some years, the cost of repairs might be low, but others it could be substantial. What’s the cost of replacing your HVAC Unit in July in Las Vegas?
4. What is the out of pocket cost of owning versus renting? You might be surprised to know there are programs available where it will actually cost you less out of pocket to purchase a home than to rent one.
5. How much will I enjoy owning my own home? When you own your own home, you can renovate it to fit your tastes. Want to change out the fixtures or add an island to the kitchen, these are options when owning your own home.

The decision to buy a home is a very important one, which should be considered carefully before being made. Follow these basic guidelines and you’ll be well on your way to making the right decision for you.