Buying vs. Renting
Note that this information is outdated.
So, you are thinking about getting into the housing market. But you just aren't quite sure. Well, this is the place to consider your options! Let's talk through the life of a renter. Then we'll compare that to the life of a homeowner. The Life of a Renter Renting does seem a bit more carefree, doesn't it? You aren't locked in for the long term in most cases; you can move more easily and more quickly because it isn't you who has to find the new tenants. Also, you don't have to do any maintenance on your home in most cases. Perhaps you've agreed with the landlord to mow the lawn, but in most cases, any major repairs or replacements will be the responsibility of your landlord. Need a new roof? That's the landlord's responsibility. Your place should be painted? Again, it's up to the landlord. However, you miss out on some of the benefits of homeownership when you rent. You won't be getting a tax benefit based on your rent. However, if you have a mortgage, you will get a tax benefit based on the mortgage interest you pay. And we'd all like to pay less tax, wouldn't we? As a renter, you don't build up any equity. You are simply exchanging money for a place to live, and your benefit is the place that you call home. However, a mortgage is a kind of "forced savings plan" in that you are paying off your home even while you are living in it, and at some point you will have a valuable asset. You can't say that about renting. Then there are the joys of rent increases. You don't have any control over that. While a homeowner can lock in a mortgage for up to 10 years, you could have a rent increase every year. So, while a homeowner can enjoy more money in pocket as their salary goes up and their payments stay the same, you'll have to check your budget and be sure that your increasing salary still pays the rent. As a renter, you don't build up any equity. You are simply exchanging money for a place to live, and your benefit is the place that you call home. However,
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