Buy or Rent?

PROS

• May build equity that could be accessible through home equity products
• No landlord to answer to
• More stability (especially with schools)
• Possible tax benefits
• Can improve or upgrade home to your taste

CONS

• Requires substantial money, paperwork upfront
• Could lose money if home values decline
• Extra expenses beyond mortgage payments
• Rising home prices and low inventory in many markets
• Responsible for repairs, remodeling

• Fewer upfront costs and paperwork
• Freedom to be more mobile
• Not responsible for maintenance, repairs
• No need to worry about falling home values
• Builds credit (if your landlord reports rent payments to the credit bureaus)
• No property tax bills

• Landlord could raise rent
• Might have to relocate on short notice if the landlord decides to sell the property
• Builds equity for the landlord
• Limited vacancies in competitive rental markets
• No tax benefits
• Less freedom in design choices (paint colors, appliances)