Renting vs. Buying
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Is buying a home the best decision for you? First and foremost, there is no universal yes or no answer to this question, but here are a few advantages and disadvantages of both renting and homeownership to consider before you take the leap.
Advantages
Buying
It's your investment/equity (forced savings)
Tax advantages
Stable mortgage expenses
Your space, your rules (pets welcome!)
Might actually be cheaper than renting
Pride in ownership; free to remodel as you please
No more monthly mortgage payments once the home is paid off
A mortgage can improve your credit score
Ability to borrow against your home
Fixed payments
Selling
Lower cost
May be cheaper than a mortgage
Little to no maintenance
Less stress (who cares – it's not yours)
Freedom to move or downsize when necessary
No risk of home price depreciates
"Free" amenities such as pool, gym, security
Some utility bills may be included
Disadvantages
Buying
Taxes
Maintenance cost
Not as easy to relocate
Monthly cost can be higher
Home prices may go down
Ownership can be stressful
Transactional costs for buying and selling
A sizable down payment necessary
Mortgage payment can increase (if an ARM)
Selling
No Tax Advantages
No equity built-up
Rent may increase
Less stability; more rules, regulations & limitations (your pets may not be welcome)
You're often stuck in a 12-month lease
Always at the mercy of the property owner
Payments never stop when renting
