Rent vs Buying 

 Rent vs Buying Advantages to Buying

• Even if the market is stagnant, and the value of your home does not increase, you will still be gradually building equity and decreasing the amount of the mortgage.
• You have the freedom to add to, remodel and decorate the home to your own satisfaction.
• There can be substantial tax advantages to owning your own home (you will need to seek legal/accounting advice to determine your own situation).

Disadvantages to Buying

• Your equity may go up or down, or even stay the same, depending on the current market.
• If you want or need to move, you will mostly likely have to either sell your home, or lease it to someone else.
• Repairs and maintenance need to be done by you, or by someone you hire.

• Generally, a down payment is required; thus your initial investment is often greater than when renting or leasing a home.
• Costs of maintaining a home can fluctuate greatly from year to year.

Advantages to Renting

• You are paying on average, 30% less than home buyers are.
• You are not gaining equity, but you are not losing equity, either.
• Maintenance costs are usually covered by the landlord.
• You can move as soon as your lease is up, without the hassle of selling a home.
• You usually have less work to do – most maintenance labor is done by the landlord or someone hired by the landlord.
• Your initial up-front cost is usually much less than a down payment on a home.

Disadvantages to Renting

• Even if the value of the home you are renting increases greatly, you will not receive the benefit.
• You are usually very limited in changes you can make to the home, inside or out.

• If there are tax advantages to be gained, they will belong to the landlord. As a renter, you do not receive any tax breaks.

As you consider these advantages and disadvantages, a professional real estate agent can be invaluable in assisting you in determining what is best for you and your family.