Buying vs. Renting

Print this page

There are many advantages to buying a home instead of renting. In many cases, the amount of money a person spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit available to homeowners, the savings can be significant. There are pitfalls too. The following chart shows you the benefits and drawbacks of both options.

Pros and Cons of Buying vs. Renting

Buying

Renting

Pros

Property usually builds equity over time

Sense of community, stability, and security

Free to change the decor and landscaping

Not dependent on anyone else to maintain the property

Part of the mortgage interest and real estate taxes are tax-deductible

Little or no responsibility for maintenance

Easier to move

No closing costs and other home-buying fees

Cons

Responsible for maintenance, even when it's inconvenient

Responsible for property taxes

Possibility of foreclosure and loss of equity

Less mobility than renting

No tax benefits

No equity builds up, no matter how long you stay

No control over rent increases

Possibility of eviction

There's No Single Answer

As you can see, there are numerous pros and cons on each side of the decision. For many, it comes down to emotional considerations as well as financial ones. Do you want to feel that you are part of a community? Do you want stability and the experience of what many consider to be the American dream?

Then again, are you ready to give up the freedom of being able to move to a different neighborhood or city? Only you can decide if buying a home is a smarter decision than renting.

Protect your credit and ensure the accuracy of what's being reported about you in all 3 nationwide credit reports. Get Started
Get essential credit monitoring and Identity protection in a single plan. All for only $16.95 Get Started
Get immediate online access to your complete credit history and credit score now. Get Started