Renting vs. Buying

1. Renting vs. Buying Housing

2. Renting • Renting- paying money to live in a dwelling that is owned by someone else • Landlords- owners that offer renters (a.k.a “tenants”) many types of housing • Rental housing is available either furnished or unfurnished and in all price ranges

3. Advantages of Renting • Predictable housing costs- do not have to worry about unexpected repair bills • Limited maintenance- yard work, snow removal, painting, and other household repairs are the landlords responsibility • Mobility- no long-term commitments; allows flexibility with job moves or for those who do not have a steady income

4. Disadvantages of Renting • Limited control and freedom- no say in how the building is maintained or managed; can’t make changes in décor; may be pet restrictions or other restrictions • Lack of permanence- does not encourage a sense of community or belonging; may not get to know neighbors • Financial disadvantages- money spent on rent is not applied toward ownership; no investment in it; may cost more than a monthly loan payment for a similar size home

5. Advantages of Buying • Feeling of belonging- stability; community awareness and responsibility • Independence- can adapt home to meet your needs; decorate to suit your taste; improvements can be made to increase value • Investment value- money put in a home is not lost; value of real estate has risen in recent years; value is likely to rise in a home if it is kept in good condition; home is likely to be sold for more than it was bought • Good credit record- helps build credit • Tax advantages- savings on your taxes

6. Disadvantages of Buying • Unexpected expenses- must maintain the home; expenses arise without warning; expensive • Time spent on maintenance- day-to-day upkeep; yard work, painting etc.; must make sure you have the time and energy • Limited mobility- should be considered a long-term investment; a person moving within a year should consider renting instead of buying