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Owning a Home Vs. Renting a home

Alysha Klein
By Alysha Klein - November 22, 2017

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 comtemplate home ownership. 

Owning a Home Vs. Renting a home

                                                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 recnet 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 

Call to action - download Road to home Ownership Guide