In case you’re still deciding let’s see how they compare.
Many say renting accommodates a more flexible lifestyle and owning works for more settled lifestyles. The truth is either can cost you if you need to move quickly.
Rent vs Own: The Differences
Renters may have to pay to break a lease and owners may lose funds if they sell too soon. Renters may have freedom from maintenance chores like yard work or shoveling snow. If the water heater breaks or the roof leaks, they need only to call the landlord for a fix.
On the other hand, owners have the freedom to do as they please. From decorating to remodeling to welcoming pets without asking for permission from the landlord.
Renting is often considered more affordable than owning. The security deposit and first month’s rent typically required for a rental can be less than the down payment and upfront costs for a home purchase. And average rent may be lower than the average monthly mortgage payment in some markets, though it is higher in many.
A home purchase may require more expendable funds for the transaction costs and ongoing expenses. However, the real cost of owning is typically less than the monthly payment for several reasons:
- A portion of your payment is principal which reduces your loan balance and adds equity back to your home.
- The interest you pay is part of a fixed rate loan payment that goes down each month.
- Interest and real estate taxes can be deductible which may reduce your income taxes.
Compare the Costs & Benefits of Renting and Owning
Our Renting vs Owning Calculator will show you how the costs and benefits might compare for your scenario.
When deciding keep in mind these key reasons why so many Americans continue to value homeownership. Let’s take a look at some financial benefits and non-financial benefits to owning a home.
Overtime, owning a home can pay back all the costs invested and then some. A rent payment can only do the same for the landlord. If homeownership sounds good but you’re concerned about limited cash to close, credit challenges, or uncertainty about the process we’re here to help. Please reach out when you’re ready to take the next step!