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