BUYING vs RENTING

If you are like me, a (somewhat) recent college graduate with several thousand dollars in debt from student loans trying to afford these “big city” rental prices, wishing someone would have told me to save up money for at least 1 year for a 3% downpayment because it’s actually easy to do. After 6 months, I saved up enough for a downpayment and set myself up for a brighter and more equitable future. Let’s take a look at the Pro’s and Con’s of each and at the end you can decide what’s right for YOU!

BUYING

+ Substantial tax breaks for homeowners
+ Build Equity to use toward a future home upgrade
+ Unlimited decorative freedom
+ Can create rental income property for future
+ Stability
- Home may lose value
- Must pay maintenance, taxes, and insurance

RENTING

+ No maintenance costs
+ Shorter time frame makes moving easier and less expensive
+ Flexibility
- No equity built. Rent money is lost.
- No tax benefits
- Rent can increase
- Little decorative freedom

Examples of the costs associated with buying vs. renting a home:

As you can see, your rental money goes towards someone else’s mortgage when it could be going to yours. You should also consider the possibilities of your future home being a great rental income if you don’t want to sell it. If you are wanting to know more about what your potential mortgage payment would look like, reach out to me. I have a great sphere of trusted lenders that can give you additional information and get you pre-approved to buy a home! Best,
Rachel