To rent or to buy? That is the question! Both renting a place or buying a home come with advantages and disadvantages to consider. It can be difficult to tell which is a better deal, but ultimately it needs to make sense for your own financial situation.
- Renting allows you a great amount of flexibility. It also gives you time to get to know an area before purchasing.
- You can enjoy easy no maintenance living. If there is a problem, just call the landlord.
- If you think you may move or change jobs in the near future, it is easier to switch to a different lease term or sublet your place than it is to sell your home.
- When renting, you aren’t building equity. You are essentially paying your landlord’s mortgage and will not have an asset to sell when you are ready to move.
- Even if you enjoy decorating, you can’t remodel or paint a rental without receiving your landlord’s approval.
- You cannot deduct housing expenses and therefore receive no tax benefits for renting.
- As you pay down your home’s mortgage, you will be building equity. And, your housing payments will remain the same unlike renting where monthly payments can increase.
- You can deduct mortgage interest as well as property taxes.
- Feel free to paint your entire living room teal if you’d like! Owning your home gives you creative control.
- The responsibility falls on you for all maintenance issues. Whether your refrigerator goes out, or you have a leaky roof, it will be up to you to keep it in good condition.
- Unfortunately, there is no guarantee that your home will gain value over the years. In a bad market, you could lose value and end up selling for less than what you paid.
- Homeowner’s insurance is mandatory and the premiums will typically be tied to your monthly mortgage payment.
For more homeownership resources, rate information, and helpful calculators, click here
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