If you’re new to the world of living on your own or find yourself on the cusp of home ownership, and aren’t sure if renting or buying is the best thing for you right now—we hope to take some of the mystery out of it. Here are some pros and cons of buying vs. renting:
|You have a place that’s all yours.
|You’re essentially “borrowing” your place.
|You’ll get some benefits come tax time, like interest deductions.
|Doesn’t make a difference on your taxes.
|Your home is an investment in your future.
|You gain no equity. (But in a volatile housing market, renting isn’t always a bad idea.)
|With a fixed-rate mortgage, the payments won’t change over the years.
|You have no control over any raises in your rent.
|You can make any changes or renovations that you want.
|Chances are, you won’t be able to make any changes to your rental.
|You have to either sell or rent your home to move.
|Once your lease is up, you’re free to move.
|You need a sizable bit of cash for a down payment.
|You usually just need money for rent plus deposit to move in.
|If something breaks, it’s up to you to get it repaired.
|If something breaks, you call your landlord.
Decided to take the homebuyer leap of faith? Discover How Much You Can Afford.