GFH Realty, Inc.

Buying vs. Renting

Find out why buying a home outweighs the advantages of renting! Evaluate the pros and cons here.

ADVANTAGES

Buying
1. Financial security for your family: Remember, owning a home becomes an asset and can be used as proof of financial solidity.

2. Emotional stability for your loved ones: Owning a home yields stability and comfort in knowing that you are living under your OWN roof.

3. Tax break: Homeowners can deduct interest on their home loans paid over the course of the year on their tax returns and get a break!

4. Equity build-up on your property: With market prices on the rise, you can earn a great deal of equity in a short period of time! There are many options homeowners have with equity such as getting cash-outs, refinancing, etc (see FAQs)

5. Enhance credit history: Look more financially secure and strengthen your credit history by paying your loan bills regularly and on time.

Renting
1. Monthly payment may be cheaper: Though this may be true sometimes, paying rent has its drawbacks.

2. Sale prices may be higher in the area you plan on living: While rent may sometimes be more affordable than mortgage payments in the area you want to live in, compromising to move somewhere less expensive can eventually pay off—literally!

DISADVANTAGES

Buying
1. There are initial monetary expenses related to buying: Things such as closing costs and down payments can be an expense, but you the return on investment is way higher!

2. You might have to compromise on location: Buying a property sometimes entails moving to a more affordable location, but the returns on that compromise can be greater than staying where you are!

Renting
1. You are, literally, giving your money away: Rent may sometimes be cheaper, but you are not adding to your principal, or paying off an investment, but merely paying someone else so who is.

2. No chance for equity: Renting does not help you add to your capital, it is just a temporary solution to housing needs.

3. No tax breaks: Sorry, no tax breaks for renters!

4. Lots of uncertainty: It can get tiresome for family with all the moving around year after year. There is also instability in not knowing whether you will be able to renew your contract in the future.