Owning a Home vs. Renting
Home Financing
Home ownership typically comes with a mortgage. Before you take on debt, determine if buying a home or renting one is the right choice for you. Here are some factors for you to consider as you contemplate home ownership.
| Feature | Own | Rent |
|---|---|---|
| Tax Benefits | Real estate property taxes and interest paid on the mortgage may be tax deductible | Rent payments are not tax deductible |
| Investment | A home is a valuable investment, particularly if home values are increasing | Renting is not an investment opportunity for tenants |
| 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 |
| Customizations / Renovations | Homeowners can make changes according to their preferences, like renovating a bathroom or a kitchen remodel | Renters must consult with their landlord for any small to moderate changes, like installing a ceiling fan |
| Affordability | Buying a home usually requires significant finances up front to cover the down payment, closing costs, and other expenses | Renting usually requires a lot less cash up front however, long-term may cost more if rent is highert than a mortgage payment |
| Maintenance/Repairs | Maintenance and repairs are the homeowner's responsibility and can be expensive and time-consuming | Maintenance is the landlord's responsibility |
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