The Great Rent vs. Buy Debate

If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "American Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a moment to review the following lists to see how your situation fits in.


More fixed costs for the term of the lease Not gaining equity, but not losing it either When the lease is up, you can just move There is generally less work in maintaining a home or apartment Smaller amount of "up-front" cash · No matter what happens with the value of the home, you will never gain equity Limited--or no--ability to personalize your living quarters No tax advantage to renting. Your landlord gets any and all tax breaks that are available


Variable costs

  • Equity may go up, down, or stay stagnant If you want to move, home generally must be sold
  • Work needs to be done by you--or paid for by you
  • Generally a larger initial investment--the downpayment
  • Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
  • The ability to remodel and redecorate the home to match your needs and desires
  • There can be tax advantages attached to home ownership. Consult competant legal and/or accounting advice for details for your situation
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