Renting Vs. Buying

Categories: Uncategorized | Posted: October 10, 2018

When looking for a place to hang your hat, there are generally two options. You can rent an apartment or other space owned by a landlord, or take ownership into your own hands. We’ll look at some of the benefits and drawback of both.

Renting Advantages

Economy is probably the biggest advantage of renting. Costs such as large down payments and the time cost of extensive paperwork and waiting periods, combined with hidden costs such as the requirement of new home maintenance equipment can add up to a large upfront investment in a home.

Other advantages:

  • Freedom and flexibility
    • When you don’t have responsibility over the day-to-day maintenance of the property that you live in, you can be more mobile and flexible with travel.
  • You don’t have to worry about home values
    • When you aren’t a part of the market, home values don’t affect you.
  • You can build credit if your landlord reports rent payments to the credit bureaus
    • We can all stand to polish our credit score a bit.


The biggest disadvantage of renting involves the lack of overall control that tenants have over their living situation. Landlords can raise rent or sell the property at any time, and you’ll be able to choose from only the living spaces that are vacant and available to move into.

Other disadvantages:

  • No equity building
    • When you don’t own the property, you forgo the cash benefits as well.
  • No tax benefits
    • No break from the IRS either.

Buying Advantages

The biggest advantage to owning a home is the control over your living space that comes with it. When you own a home, you can pretty much do whatever you like with it and don’t have to answer to a landlord.

Other advantages:

  • Stable Costs Over Time
    • Mortgage costs, as opposed to rent, are much more stable on average over the long term.
  • Tax Savings
    • Since a home is also an investment, homeowners get some tax breaks.
  • May build equity and credit
    • When the conditions are right, a home can be a great asset.
  • More stability
    • A home is great for staying planted in a certain area such as a good school zone.
  • Possible tax benefits
    • There are also tax benefits for things like building an eco-friendly home.


The most significant disadvantage to owning a home is the initial expense. Along with mortgage, there are some expenses that come with home ownership.

Other disadvantages:

  • Requires a significant amount of paperwork and waiting time.
  • Home value can fluctuate.

Making a Choice

Some things to consider when deciding whether to buy or rent are:

  • What can you afford, and how much savings do you have? If you’re living on a tight budget, it may be better to rent.
  • Consider how long you will live in this location. Shorter-term living will likely benefit from renting whereas buying is a great investment the longer you stay in one place and build equity.
  • Homes increase in value over time usually, but not always. It helps to consider a potential home as simply a place to live instead of just an investment.
  • When you own a home, it’s yours. It’s a space where you can change whatever you want. Owning a home may be especially appealing when having young children who need the extra space. At the end of the day it’s a decision that is also influenced by personal needs and desires.


Kelly Ruh

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