What's the Difference Between Buying and Renting?

Which one is better?  As you can expect, I believe that homeowner ship is the wisest way to live.  However, it may not be the best time for you to buy.  If you find yourself asking the question in the picture, then this blog will help you.  

Renting
Renting is a great option for many people who are in transitional times of their lives.  You are only tied to your lease.  You generally do not have to do maintenance and often don't have to do any yard work.  

However, the upsides also come with the downsides.  While you do not need to worry about maintenance, you also are unable to make improvements; like adding a patio, or opening up the room by taking down a wall.  I think in every place I rented, there were projects I wished I could have done to the place.  In fact, often with rental agreements you can not even paint the walls to your choice colors.  

Home Buying
As just mentioned, when you own a home you can do whatever you please.  You could tear down the walls of the guest bedroom and office to put in an indoor swimming pool. (I am still waiting on approval from my wife on that one.)  Besides being able to make modifications to your home, the main benefit comes in fiscal form.

The main benefit of home ownership is that your monthly payments goes toward building equity.  Historically, home value goes up, as well as cost of living.  When you buy a home and start your mortgage payment, as long as you get a fixed rate, it will not go up. In contrast, landlords often increase their rent prices annually.  Additionally, your house value will continue to increase (long-term).  Besides equity, owning a home qualifies you to receive tax breaks. 


If you are able to afford a home and think you will be living in the area for 3-5 years you probably want to seriously consider home ownership for the aforementioned financial benefits. 

Source: hud.gov