Buying Versus Renting:
There are many advantages to buying a home versus renting one. In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant. Below is a chart outlining the advantages of buying versus renting and things to take into consideration.
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Advantages |
Considerations |
| Buying |
- Property Builds Equity
- Sense of community, stability & security
- Free to change décor & landscaping
- Not dependent on landlord to maintain property
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- Responsible for maintenance
- Responsible for property taxes
- Possibility of foreclosure & loss of equity
- Less mobility than renting
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| Renting |
- Little or no responsibility for maintenance
- Easier to move
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- No tax benefits
- No equity is built up
- No control over rent increases
- Possibility of eviction
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Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:
- Property Taxes and Special Assessments
- Home/Hazard Insurance
- Utilities
- Maintenance
- Home Owner Association (HOA) Fee: Doesn't apply to all purchases. It pays for trash and snow removal and maintenance of common grounds if applicable.
- Membership Fee: It may pay for recreational facilities and other services (cable TV).
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