buying vs renting

Buying vs. Renting

By: Samantha NagrabskiLaRae MorrisNathan Kay

Advantages of Buying

Tax Write-off Upgrades to your home can be made as

you see fit Equity is built as the value appreciates The control of Loan payment options A pride of homeownership

Disadvantages of Buying

Responsibility for property maintenance Must wait for market conditions to be right

before even selling, renting, or leasing property

You must pay for all your own utilities, property taxes, and insurance

Home improvements can run

high in price

Advantages of Renting

Landlord handles general repairs The freedom to move once your lease

expires Place may already include utilities, property

taxes and property insurance You're not financially responsible

for improvements

Disadvantages of Renting

No tax write-off Need permission to make any changes Your money goes towards the landlord's

equity Rent can increase periodically You have no ownership

When to BuyTrulia’s Rent Versus Buying Index favors

home buying over renting in 72% of the nation’s top cities...Including:

Miami Las Vegas Phoenix San Antonio Atlanta Detroit

When to Rent Best advised for people:

With a high debt ration (50% or more) That have jobs that are in jeopardy With bad credit (usually below 620) Who relocate frequently Not in a position to pay a higher

mortgage When living in areas like Los Angeles or

New York City

Overall If you stay in your home for 6 years,

renting is better. If you plan to stay in a home for more time, buying is better.

Buying allows more long-term benefits while renting is more of a short-time fix

Buying saves money over the long-term since price declines over time