The Pros of Home Buying
The perks of privacy.
Good investment - Homes typically increase in value, build equity and provide a nest egg for the future.
Your costs are predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage.
The interest and property tax portion of your mortgage payment is a tax deduction.
There’s pride in home ownership, which also build a relationship or network to your community.
The Cons of Homeownership
Homeownership is a long-term financial commitment.
You’re responsible for all maintenance on your home. This can include inexpensive repairs like fixing a broken toilet to complex and costly repairs like replacing a furnace.
Owning a home ties you to your community, making it more difficult to suddenly pick up and leave a location.
Although mortgage payments are usually fixed, they’re generally higher than rent payments.
Buying a home requires a down payment, closing costs and moving expenses.
The value of your house may not increase – especially during the first few years.
Borrowing against your home equity, to help you with a debt consolidation, for example, can leave you ‘house poor’
Financial Disadvantages of Renting
There is no tax break for renting. You won’t be able to claim any deduction for mortgage interest and property taxes when you file your tax returns.
Your housing costs aren’t fixed like they are with a fixed-rate mortgage. Your rent will most likely grow from year to year.