Rent versus Own

Is Home Ownership the Right Choice for You?

It?s probably safe to say that most people want to own their own home. Home ownership is, after all, referred to as ?The American Dream.? Nevertheless, the desire to purchase a home should not be assumed or taken lightly. There are many pros and cons associated with renting versus purchasing, and it?s wise to consider them all before making your decision.

Advantages of Renting	Advantages of Ownership
Freedom to change place of residence on short notice	Added tax deductions to reduce tax liability
Tenant-Landlord laws protect your rights	Build equity (a form of savings)
Fixed rent during the term of lease	Appreciation over time (gain in value)
No direct property tax (included in rent)	Ability to borrow against value of home
Landlord is responsible for major repairs	Stability/Security
	Opportunity to develop community
	Fixed payments over course of loan
	Freedom to decorate/remodel as you wish

Disadvantages of Renting	Disadvantages of Ownership
No equity accrued from rental payments	Less mobility
Need for permission to remodel/redecorate	Pay for upkeep/improvements
Rent can go up with short notice if no lease	All repairs are up to you
Possibility of eviction or sale by owner	Possible yard work
Landlord makes the rules	Lack of asset liquidity
	Property tax increases

Which way do the scales tip for you?