Making the Choice: Buy or Rent?

About Buying a Home

Buying a house is the act of exchanging money for a house, usually involving a loan from the bank. The repaying over time, with interest, is known as a mortgage.

Why should I buy a house?

• You own the house. It is yours to change, destroy, sell, etc.
• Over time the property value can increase.
• You get an increased feeling of stability and security.
• There is no landlord to maintain your property; you are the landlord.

What problems should I know about?

• You are responsible for your own maintenance.
• You must pay property taxes on a regular basis.
• There is the possibility of foreclosure, if you can't pay your mortgage, which may result in loss of your property.
• You may also have less mobility than you would if you were renting.

About Renting a Home

Renting a house is the act of borrowing a house for a set time with the agreement of paying over time (usually monthly)

Why would I rent?

• In renting, you may have little, or no responsibility for your maintenance.
• It is also easier to move from place to place which increases your choices where to move to.

What should I watch out for?

• There is a possibility that your landlord may take away your living space.
• You have no control over your rent increases.
• No property value is built up.
• You may not get any tax benefits.
• The amount you pay for rent increases every year.

Well, which is better?

It really depends on your situation. If you plan on settling down for a while -- living in one place for more than a year -- buy a house. If you move around, rent. It's a simple as that.