'Shark Tank' star Barbara Corcoran breaks down when to buy and when to rent
Barbara Corcoran shares advice on how to be financially savvy.
— -- "Shark Tank" star and real estate mogul Barbara Corcoran broke down some of her top financial tips to help consumers decide when to buy and when to rent everything from housing to cars to clothing.
Housing
If you can afford to buy something early, do it, Corcoran said. The benefits of buying include that you can build equity, you can make a profit when you sell your home, you will not have your rent increased, and you can deduct mortgage interest payments from your taxes.
On the other hand, Corcoran mentioned some benefits of renting. These include that you can move in and out of the markets with ease, you will not face large upfront costs or down payments, and you will pay lower for maintenance.
Cars
If you like to frequently change cars or are looking to only have one for a short period of time (such as only two or three years), if you are able to moderate the distances you drive, and if you take good care of a car, then leasing might be the right option, Corcoran said.
If you drive long distances, plan on owning the car for a longer period of time, and would like to build equity, then purchasing a car might be the best option, according to Corcoran.
Clothing
It is better to buy clothing when it's a timeless piece that you plan to wear frequently, such as a great pair of jeans or a blazer for work, according to Corcoran.
Corcoran adds that it is a good idea to rent a piece of clothing for a special occasion, such as a wedding or black tie event. In these scenarios it often makes sense to rent because these pieces can be pricey, and may only be worn a few times, or even worse, only once.
Furniture and electronics
Corcoran says when it comes to furniture, it is better to buy. The cost of renting furniture, while enticing in the short run, can add up quickly over time.
If you need a piece of furniture for a very short period of time, however, renting may be an option, but Corcoran suggests looking into cheap or free furniture options first.
When it comes to electronics, Corcoran recommends thinking about how often you will use a product. If you need the use of an electronic item for a day or week, such as a video camera, then renting is the best option. If you are planning on using the device long-term, however, purchasing may be the better option.