Your  Next Home is Waiting

A home is one of the most expensive purchases most of us will ever make during our lifetime. Whether you decide to rent or buy, either choice comes with its own rewards and risks. Homeownership offers many advantages over renting.

Advantages of Buying vs Renting


  • Tax write-off
  • You can upgrade your home as you see fit
  • Build equity in your home as value appreciates
  • Control of loan payment options
  • Pride of homeownership


  • No tax write-off
  • Need permission to make any changes
  • Your money goes toward your landlord's equity
  • Rent can increase periodically
  • You have no ownership

While owning your own home has many benefits, there are still risks to consider.

Disadvantages of Buying vs Renting


  • You're responsible for property maintenance
  • Need to sell, rent, or lease property in order to relocate. May have to wait until market conditions are right.
  • You pay for all your own utilities, property taxes, and insurance.
  • Home upgrades can run thousands of dollars


  • Your landlord or manager handles general repairs
  • Freedom to move once your lease expires
  • May include utilities, property taxes, and property insurance
  • You're not financially responsible for improvements

So when does it make sense to buy?

People, who have generally rented their whole lives, purchase a home for various reasons. Owning something of value with a chance of watching their investment appreciate is one reason. Purchasing a home to save money over the long-term is another.


Let's say you're currently renting a two-bedroom, two-bath apartment. Your monthly rent is $1,000. You find a two-bedroom, two-bath at a market price of $250,000 (roughly the national average.) You have $25,000 saved - enough for a 10 percent down payment. For the purpose of this example, you're looking to finance $225,000, which includes closing costs.

Using one of several mortgage calculators on the Internet, your monthly payment would be approximately $1,385 for a 30-year fixed loan at an APR of 6.20% (the national average is currently 4.50%). After taxes and appreciation in equity, your monthly payment over five years would average $499 per month.

Cost Savings of Buying vs Renting


Monthly Rent/Estimated Mortgage Pmt

Purchase Price of Home

Down Payment

Length of Loan

Interest Rate

Years You Plan to Stay in Home

Yearly Property Tax Rate

Yearly Home Value Appreciation Rate














Price of Home After Appreciation

Remaining Balance After 5 Years

Equity in House

Tax Savings (28% Bracket)

Avg. Monthly Payment Over Time

Total Payments (Over 5 Years)

Total Savings if Buying














*Source: These calculations are estimates only. You should always seek the guidance of financial or tax experts before making any buying decisions.

The outcome could dramatically change should an unforeseen economic downturn or financial hardship occur (e.g., home improvement costs, catastrophic damage, etc.). While, no one can predict if home appreciation values will spiral downward, or if mortgage interest rates will rise, it's clear that under the right circumstances home ownership can be financially rewarding.