Buying vs Renting

PROS AND CONS OF BUYING AND RENTING

Deciding whether to buy or rent a home is a major financial and lifestyle choice. In this article, we break down the key advantages and responsibilities of each option to help you determine what best fits your goals and current situation.

BUYING

• Potential for appreciation/value increase

• Unlimited time to live in the property

• Possibility to generate monthly rental income

• Rent can help pay off the property

• Freedom to make changes to the property

• Sense of ownership, stability, and community

• Ability to deduct HOA fees and property taxes on income tax return

• Ability to deduct mortgage interest from taxes

• Higher returns than a savings account

• Responsible for repairs and improvements

• Responsible for HOA fees and property taxes

RENTING

• Flexibility to move frequently

• Not responsible for major repairs

• Allows the experience of living in a community without long-term commitment

• Not responsible for HOA fees or property taxes

• No tax benefits

• Cannot deduct rent on taxes

• Cannot make changes without landlord approval

• Risk of annual rent increases

• Renewal depends on the landlord

• Money spent without building equity

Summary:
Buying offers stability, equity, and tax benefits but comes with responsibilities. Renting provides flexibility and fewer expenses, but no tax perks or long-term financial gain.