The buying vs. renting debate has been going on for some time, and the truth is – there are pros and cons to both sides. What’s most important is that you make your decision based on your short- and long-term goals, as well as what’s right for your finances. The below chart compares some of the positives and negatives of both buying and renting to help you make the most informed decision.  When doing your research, you may find additional items to add to your own pros and cons list.  Be sure to consider all the factors that fit your unique circumstances.

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Pros of Buying

  • An investment- you build equity
  • Potential tax breaks*
  • Freedom to customize your space
  • More stable housing costs

Cons of Buying

  • Long-term commitment
  • Requires taxes and maintenance costs
  • Requires down payment**
  • Can be difficult to sell

Pros of Renting

  • No long-term commitment
  • No maintenance costs
  • Renter’s insurance is cheaper than homeowner’s
  • No property taxes

Cons of Renting

  • Build equity for someone else
  • No tax benefits*
  • Little freedom to customize
  • Housing costs unstable as rents go up

 

Evaluate Your Situation

Once you’ve weighed out all the pros and cons, you should also do a cost-analysis to see whether buying or renting is more affordable for you. Since this is impacted by several factors, including mortgage rates, the price of the home vs. rent prices, and how long you plan to live there, consider using a rent vs. buy calculator*** to help you sort through all the details. By doing your homework and evaluating your options, you can make the best decision based on your situation. Ready to start looking for a home? Contact us today to learn more about the process and discuss your home financing options.

 

*Arvest Bank does not offer tax or legal advice – please consult a tax professional.

**Depending on loan program.

***Information provided by financial calculators are intended for illustrative purposes only and may not be applicable to your individual situation.