Topic: Monthly Costs
Renting
Advantage
More Fixed Costs for the term of lease.
Disadvantage
Although in the short run costs are more fixed, over several years rent payments can increase.
Buying
Advantage
Over the long term it is possible for the cost to be more fixed if you choose a fixed rate mortgage. The actual mortgage payment will stay the same for the live of loan. (If you escrow taxes and insurance through you mortgage payment, it is possible for your payment to increase if these items increase.)
Disadvantage
There are more variable costs in the short term.
Topic: Equity
Renting
Advantage
You will not lose equity in a down market.
Disadvantage
No matter what happens with the value of the home, you will never gain equity.
Buying
Advantage
Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase.
Disadvantage
Equity may go up, down, or stay stagnant. In the short term, this may cause problems if you need to move.
Topic: Work to maintain or improve the property
Renting
Advantage
There is generally less work in maintaining a home or apartment.
Disadvantage
There is usually limited or no ability to personalize your living quarters.
Buying
Advantage
You have the ability to remodel or decorate the home to match your needs/desires.
Disadvantage
Work needs to be done by you or paid for by you.
Topic: Other monetary considerations
Renting
Advantage
You need a smaller amount of cash up-front to rent.
Disadvantage
There are not tax advantages to renting. Your landlord gets any and all tax breaks that are available.
Buying
Advantage
There can be tax advantages associated with home ownership. Consult your tax professional to learn more.
Disadvantage
There is generally a larger initial investment in the down payment when purchasing the home.
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