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