Buying versus Renting |

Buying versus Renting

From the National Association of Realtors


1. Fixed cost for the term of the least

2. While you don’t gain equity, you don’t lose it either

3. When the lease is up you can move

4. Maintenance generally falls on someone else’s shoulders

5. The up-front cash is a much smaller amount


1. No matter what happens with the value of the property, you will never gain equity

2. Limited (and sometimes no) ability to personalize where you live

3. No tax advantage. The tax breaks go to the owner (your landlord) and not to you


1. Overtime the mortgage balance decreases and equity builds, even if the value of the home does not appreciate

2. The ability to remodel and redecorate can be matched to your needs and desires

3. There can be a significant tax benefit. Check with your accountant or tax advisor to ensure you take full advantage of what the law provides.


1. Equity can go up or down or stay the same

2. If you want to relocate, typically you must sell your home first

3. Maintenance needs to be done by you … or paid for by you

4. The is generally a larger initial investment (down payment)

There are many great reasons to consider owning a home:

1. You’ll have a place that is yours! You’ll own it, have a place to raise your children and become a part of your community. You can pass your home down to your children, and their children, creating security for generations to come.

2. You may pay less to own a home than you would to rent – and it’s yours at the end!

Homeownership can reduce the federal income taxes you pay. You can deduct the interest on your home mortgage and property taxes you pay on your home on the tax returns you file each year. These tax savings partially reduce, or offset somewhat, the actual cost of owning your home.

3. Your monthly payments won’t ever go up if you choose a fixed-rate mortgage!

If you choose a mortgage with a fixed-interest rate (one that stays the same for the life of the loan, say 30 years), you’ll pay the same mortgage payment each month for the entire 30 years of the loan (if your taxes go up, your escrow will go up – increasing your monthly payment).

4. You’ll build a good nest egg!

Owning a home and building equity is the single greatest source of financial security and independence for the majority of people who’ve taken this step.

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