Buy VS. Rent

Benefits of Owning A Home

  1. Pride, comfort and stability. You can customize your home exactly the way you want it to fit your needs. 
  2. When paying money towards the principal on your loan each month, you increase the percentage of your home that you own. 
  3. Mortgage payments remain the same with a fixed rate loan. Rent costs, however, inevitably go up. 
  4. When filing your tax returns, you can deduct the interest you pay on your mortgage. 
  5. You gain from the appreciation on your home. The whole house appreciates, not just your down payment. 
  6. Recent tax law changes allow you to sell your home after 2 years without paying tax on your gain.

Downside of Renting

  1. In renting, you do not accumulate equity. You are essentially giving away your money each month. 
  2. The landlord benefits from the appreciation values, not the tenant. 
  3. You are at the mercy of the landlord – if your rent is increased, you are subject to the lease. 
  4. You live in a space not designed for you and without your personal touch. 
  5. The landlord benefits from your work and improvements on a house or apartment that you rent. 
  6. Rent payments are not deductable from income taxe