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.