Home ownership typically comes with a mortgage. Before you jump into debt, determine if buying a home or renting one is the right choice for you. Here are some factors to consider as you contemplate home ownership.
| For Sale | For Rent | |
|---|---|---|
| Taxes | Real estate property taxes and interest paid on the mortgage may be tax deductible | Rent is not deductible |
| Equity | Owning a home is a form of savings, as equity increases with each payment | Renters do not accumulate equity; once they pay their rent, the money is gone |
| Investment | A home is a valuable investment, particularly if home values are increasing | Renting is not an investment opportunity for tenants |
| Customization | Homeowners can decorate and make changes according to their personal preferences | Renters must consult with their landlord to make any small to moderate changes to the dwelling |
| Responsibility | Owning a home involves a long-term financial commitment | Renting involves a financial commitment only for the duration of the lease |
| Affordability | Buying a home usually requires a significant outlay of cash to cover the down payment, closing costs and other expenses | Renting is usually much less expensive than buying a home, at least at the outset |
| Relocating | Relocating is much more difficult when a house must be sold | Relocating is usually much less complicated for renters |
| Maintenance | Maintenance and repairs are the homeowner’s responsibility and can be expensive and time-consuming | Maintenance is the landlord’s responsibility |
Top Reason's People Buy Homes
The America dream of owning a home continues to be alive and well. According to a recent Gallup poll, either out of 10 adults either own a home or plan to buy one in the future. Here are the top five reasons people buy homes.
Financial Reasons:
Owning is an investment
Chance to build equity and credit
Smarter than paying rent
More cost-effective than paying rent
Financial security and stability.
Non-financial reason:
Belief in home ownership
Don't want to live in a rental
Better place for the family
Ability to do what they want
Pride of ownership
