The “should I own or should I rent” dilemma is not a new. It is an issue that consumers across the country are struggling to find an answer to, and each option has its own set of advantages and disadvantages. Choosing whether it is better for you to rent or buy comes down to a financial and emotional decision for you and your family, and there are signs to look for to help point you in the right direction.

When deciding whether to rent or buy there are three main factors to consider: debt or lack of savings, responsibility and timing.

1. Debt or Lack of Savings

The first sign that you should stay away from homeownership is that you are deep in debt. The amount of your debt and the type of debt you are in come into play. If your credit cards are maxed out, you have bill collectors calling and you are barely scraping by making the minimum payments on your bills, then renting is typically a better option. Owning a home can be expensive, and mortgage lenders may not even approve your application if you have too much debt.

Similar to having too much debt is not having the savings you need to put a down payment on buying a home. A traditional down payment on a home is 10% to 20% of the purchase price of the home. In addition to putting a down payment on a home, you also have to pay closing costs, which can add up to thousands of dollars. The most money you will have to come up with as a renter is a deposit and the first month and the last month’s rent.

2. Responsibility

Owning a home requires a great deal of responsibility. As the homeowner, you are responsible for the maintenance and the repairs of your home, the surrounding areas and any other structures on the property. If the roof is leaking, you are the one that has to call out the roofer and pay for the roof to be repaired or replaced. When the grass gets too long, you have to mow it or hire and pay for a company to take care of it for you.

Conversely, when you rent, the landlord is typically responsible for the upkeep and maintenance of the property. When the plumbing goes on the fritz, you call the landlord and he calls and pays for the plumber to take care of the problem. Normal maintenance and repairs are the responsibility of the owner of the property and not you as the renter.

3. Timing

Consumers that move from place to place frequently or are not sure how long they will be living in an area should rent. This way if you do have to move, you do not have to worry about selling your home. At most, you would have to pay a fee to break your rental lease. If you are new to an area, you may not know which areas and neighborhoods are good to live in. Renting allows you to try out different areas of town prior to committing to any particular location.

Especially in an economy when home prices are so affordable, the advantages of  buying versus renting is a hot topic. While there is no one-size-fits-all answer for everyone, make sure to consider all aspects and the pros and cons of both options.