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

Feb. 13, 2013

Pros to Buying

You can build equity over time.
The home is yours, so you have more control over how to decorate it and landscape it.
Greater stability - as long as you can afford the property taxes and your mortgage payments, you don't have to worry about being evicted.
Getting to know the neighbors. Because you are likely to stay in a home you own longer that one you rent, you may become more involved in your community.
You can benefit from tax deductions on real estate taxed and mortgage interest.

Cons to Buying

Its a big commitment. You may be in that home for quite some time, so deciding which home to purchase can be tough - you want to make sure it's a good fit.
When it comes to maintaining a home, it's all about you. It's up to you to make the repairs when the toilet leaks or pay the handyman for the fixes.
Home ownership insurance premiums. You'll have to pay these to cover the cost of any potential damage to your property. Also, if your home is part of a homeowners' association (HOA), you'll have to pay HOA fees.
You may have to borrow heavily and pay interest (take out a mortgage) to afford the home. You could lose your house if you can't keep up with your mortgage payments.
You have less mobility because of the work and time required to find a buyer, sell your place and move your belongings. (Which you may have acquired more of, now that you own space to keep things in.)
If you can't keep up with your mortgage payments, you could face foreclosure and a loss of equity. (Not to mention the damage it'll do to your credit history.)

Buy or Rent? That is the Question