Rent vs Buy – Which is better?

In today’s landscape of rising home prices and interest rates, is it better to rent or buy your next home?
There are several factors that come into play when deciding if it’s better to rent or buy.
The length of time you plan to stay in the property, your credit score, your income.

Let’s take a look at some of the advantages and disadvantages to this age old question.

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Advantages of buying:

There are many benefits of home ownership. You get a home all to yourself, no need to worry about a landlord anymore. Upgrade and renovate the home as you choose. You can finally start taking real pride in your new home. Here are some of the advantages to buying:

1- You will eliminate monthly housing payments once it’s paid off.
2- If the home appreciates more than you’ve paid in mortgage, interest, taxes, and maintenance over time, you earned a return
3-  Interest paid is a tax deduction
4- Home value may increase over time
5- Build equity as time goes by is like a savings account
6- The pride factor
7-  You can make renovations to customize it to your style
8- Payments help to build credit

Disadvantages of buying:
1- You’re responsible for all repairs
2- Requires a sizable downpayment
3- More difficult to qualify for
4-Property taxes, mortgage insurance, homeowners insurance
5-HOA dues
6- More difficult to relocate
7- Large up-front costs

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Advantages of Renting:
Renting makes much more sense for some people. Let’s say a single person living in a nice area where the home prices are too high to afford. Renting a one bedroom apartment is the only logical choice for them.
But what about in cases where the rent and mortgage payments will be roughly the same? In this scenario, the decision isn’t so simple. Some of the advantages of renting are:

1- Repairs are included
2- Easy to relocate
3- No HOA dues
4- Low move-in costs The monthly payment is lower in some cases

Disadvantages of Renting:
1- You cannot make changes to the property
2- You earn no return on your payments
3- Monthly rates could increase
4- Renting does not improve your credit
5- Dated feel, landlords don’t make cosmetic upgrades while you’re in the home

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