Renting vs buying a home. 

Things to think about.

If you’re thinking about buying a home, there are many factors that may affect your ability to qualify for a mortgage, like your income, job status, savings, debt, and other considerations. We can help you develop a plan to get there.

If you do qualify for a mortgage, you may still want to compare the ongoing pros and cons of renting vs buying a home before you make a decision.
 

When you own your home:

• You are responsible for repairs, maintenance, insurance, property taxes, and other costs
• You need to commit a large portion of your savings to a downpayment
• You may be able to earn money by renting out extra space
• When it comes time to sell your home, you could be exempt from paying tax on any profit you earn (known as capital gains tax), as long as the home was your primary residence for every year that you owned it
• You may be able to use your home equity to finance another investment
• You may gain financial security for your family or for retirement
• The market will dictate the value of your property
• You may not be able to sell when you want or need to access ready cash
• You need to commit to ongoing mortgage payments

When you rent a home:

• You are responsible for fewer (or no) repairs, maintenance, home insurance, property taxes, and other costs
• You pay lower upfront monthly costs, but your monthly payments may increase year over year
• You have more flexibility to move if or when you need to; however, you may be required to move before you’re ready
• There is a risk that your lease will not be renewed