Buying

Renting

1. Over time, the mortgage balance decreases and equity increases, even if the value of the home does not increase
2. The ability to remodel and redecorate the home to match your needs and desires
3. There can be tax advantages attached to home ownership. Possible tax advantages include mortgage interest and property taxes. Consult competent legal and/or accounting advice for details for your situation

1. No matter what happens with the value of the home, you will not gain equity
2. Limited—or no—ability to make it feel like home by personalizing your living areas
3. No tax advantages to renting. Your landlord gets any
   and all tax breaks that are available

1. Variable costs
2. Equity may go up, down, or stay stagnant
3. If you want to move, home generally must be sold
4. Work needs to be done by you—or paid for by you
5. Generally a larger initial investment—the downpayment

1. More fixed costs for the term of the lease
2. Not gaining equity, but not losing it either
3. When the lease is up, you can just move
4. There is generally less work in maintaining a home or
   apartment
5. Smaller amount of “up-front” cash