Rent vs. Owning a Home

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WHICH OPTION IS RIGHT FOR YOU?

When deciding whether to rent or to buy a home, make sure you’re aware of the pros and cons of each option. The following chart details some key considerations that will help you determine the right choice for you:

RentingOwning
CostsFixed Monthly costsVariable Costs
EquityNo equityEquity built over time
MobilityYou’re free to stay or to move at the end of the lease. However, the owner may choose not to renew your lease.You’re free to move whenever you want, although this often entails selling or leasing your home and doesn’t guarantee a buyer or renter
UpkeepAside from a possible up-front deposit, the owner pays for the upkeepCosts of upkeep are entirely yours.
Initial InvestmentSmaller amount of up-front cashGenerally calls for a larger up-front investment and a down payment
PersonalizationLimitations on decorating and remodelingNo limitations on decorating and remodeling
TaxesNo tax advantages for rentersPotential tax advantages

About the author

Rich Patterson has been a REALTOR® since 2006 and is the Owner of Urban to Suburban Realty.

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