Buy or Rent? That is the Question

Feb. 9, 2013

| Deidron Clouden

Deciding whether it's best to buy or rent a home isn't an easy decision. There are financial Pros and Cons to each. Plus, whether or not you want to become a homeowner may depend on your lifestyle, so its very much a personal choice. Take a close look below at the pluses and minuses before making your move.

Pros to Renting

Your not required to save up a sizable down payment.
Renting is normally a short-term commitment
You are usually free of major maintenance cost and paying property taxes - your landlord takes care of that.
You aren't tied down to one place, and can relocate fairly easily.
Since you are not obligated to a relatively short-term lease (a few months, or a year), committing to a particular rental isn't a strenuous decision.

Cons of Renting

You aren't building equity (the value an owner has in a piece of property minus the debt against it).
You can't take advantage of tax benefits (like tax deductions for mortgage interest and property taxes) only available to home owners.
You may be subject to rent increases that you can do little about.
You might not be able to decorate a home as you like.
You may be subject to restrictions on pets. (some landlords don't allow them). Also, your landlord could infringe on your lifestyle - e.g., complaining about the level of noise from parties and the number of guest who stay at your place.
You could get evicted (if the landlord decides not to renew your lease, or to sell the property) and have to seek another place to live.

Rent or Buy? That is the Question (Cont.)