|
Renting
|
|
Buying
|
|
Advantages
|
|
Disadvantages
|
|
More fixed costs for the
term of the lease
|
|
Variable costs
|
|
Not gaining equity,
but not losing it either
|
|
Equity may go up, down, or stay stagnant
|
|
When the lease is up,
you can just move
|
|
If you want to move, home generally must be sold
|
|
There is generally less work in maintaining a home or apartment
|
|
Work needs to be done by you--or paid for by you
|
|
Smaller amount of "up-front" cash
|
|
Generally a larger initial investment--the downpayment
|
|
Disadvantages
|
|
Advantages
|
|
No matter what happens with the value of the home, you will never gain equity
|
|
Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
|
|
Limited--or no--ability to personalize
your living quarters
|
|
The ability to remodel and redecorate the home to match your needs and desires
|
|
No tax advantage to renting. Your landlord gets any and all tax breaks that are available
|
|
There can be tax advantages attached to home ownership. Consult competant legal and/or accounting advice for details for your situation
|