Is Owning Better Than Renting?

Depending on your financial situation and preferred style of living, there are many advantages to renting: Renting a home can be cheaper than buying a home.

Your payments tend to be lower than a comparable house payment.

Also, your rent may cover utility costs (additional savings).

Why is renting better than owning?

No Real Estate Taxes

One of the major benefits of renting versus owning is that renters don’t have to pay property taxes. Although property tax calculations can be complex, they are determined based on the estimated property value of the house and the amount of land.

Is homeownership better than renting?

According to real estate website Trulia, homeownership is 38% cheaper on average than renting nationally, which is a 3% decrease from 2013. They compared the total costs of homeownership (including maintenance, taxes, and insurance) to the total costs of renting for the same period of time.

Why I rent instead of buying?

1. You want maximum flexibility. With renting comes the flexibility to stay put for a few months or years without paying much more than a monthly payment. If your job requires you to move every few years or if you’re unsure how long you’ll be in one place, it can make much more sense to rent.

Is renting always a waste of money?

But paying rent is still a waste of money, right? Anyone can waste money by making bad spending decisions and relying too much on credit. But on its own, renting is actually a smart and flexible financial choice! When you rent an apartment, it’s best to think of it as simply exchanging money for a place to live.

Is renting really throwing money away?

Key Takeaway: You’re not building much equity, especially during the first decade-and-a-half. Most of your mortgage payment gets “thrown away” on interest, taxes and insurance. If you rent, 0% of your monthly payments build equity. If you own, X% of your monthly payments build equity.