Renting vs. Buying

There are many advantages to buying a home versus renting one. View these advantages below and to the right in the Mortgage Payments calculator along with the additional information below.

 

Buy vs. Rent         Comparison Chart	ADVANTAGES	CONSIDERATIONS
BUY	Property builds equity	Responsible for maintenance
	Sense of community, stability, and security	Responsible for property taxes
	Free to change decor and landscaping	Possibility of foreclosure and loss of equity
	Not dependent on landlord to maintain property	Less mobility than renting
RENT	Little or no responsibility for maintenance	No tax benefits
	Easier to move	No equity is built up
		No control over rent increases
		Possibility of eviction

Savings: Buying

In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage.  With the tax benefit for homeowners, the savings can be significant.

Monthly Expenses: Buying

Your rental company takes part of your rent payment to cover certain housing expenses.  When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below).  They are additional costs to your monthly mortgage payment and should be included in your budget estimates:  

• Property Taxes and Special Assessments
• Home/Hazard Insurance
• Utilities
• Maintenance
• Home Owner Association (HOA) Fee: Doesn’t apply to all purchases. It pays for trash and snow removal and maintenance of common grounds if applicable.
• Membership Fee: It may pay for recreational facilities and other services (cable TV).

Buy vs. Rent Comparison

• The renter starts out paying $800 per month with annual increases of 5%
• The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
• After 6 years, the homeowner’s payment is lower than the renter’s monthly payment
• With the tax savings of home ownership, the homeowner’s payment is less than the rental payment after 3 years