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.