BUYING vs RENTINGIf 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
- Home may lose value
- Must pay maintenance, taxes, and insurance
RENTING+ No maintenance costs
+ Shorter time frame makes moving easier and less expensive
- 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: