| Renting |
Buying |
| Easy to find and move into a Rental Home or Rental Townhouse or Rental Condo or Rental Apartment |
More steps involved in buying – finding home or townhouse or condo or apartment, getting mortgage loan, closing and finally moving in |
| Smaller “move-in” investment |
Larger “move-in” investment the down-payment |
| Fixed monthly costs for the term of the lease |
Variable Costs like Mortgage and Maintenance |
| Minimal (or No) work needed in maintaining a home or apartment |
All the maintenance Work needs to be done by you or paid for by you |
| Easy to “Move Out” with less hassles |
Must sell the house to “Move Out” |
| Good for Short term investment |
Good for Long term investment |
| No gain or loss in equity |
Equity automatically builds with appreciation OR over time within Mortgage Loan (even if the value of the Home does not increase) |
| Limited (or No) scope of personalizing |
Home can be remodeled and redecorated to match your tastes |
| No tax benefits |
Many Tax benefits attached to home ownership – Mortgage Loan interest, Equity Loan interest, Property Tax Deduction |
| Short-term friendship with Neighbors |
Long-term friendship with Neighbors |
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Summary: Renting Home should be preferred -
- if the commitment is short term
- if less Home maintainence is preferred
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Summary: Buying Home should be preferred -
- if the appreciation rate is above inflation
- if the monthly costs of Buying and Renting are same
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Equal Housing Opportunity