A survey conducted by NeighborWorks® found that low-income homeowners had a net worth 12 times that of renters at the same income level. That said, there are many more factors to consider in making one of the most important decisions of your life. Let's explore them.

Renting: Pros and Cons

 

Advantages

• Fixed costs for the term of the lease.
• Smaller "investment" - security deposit only.
• Mobility - free to move on after lease expiration.
• No loss of equity.
• Generally fewer worries over maintenance.

Disadvantages

• Limited ability to personalize your home.
• No equity gain ever.
• No tax advantage.
• Ownership of property (your landlord) may change.

Owning: Pros and Cons

 

Advantages

• Ability to personalize your property to your liking.
• Equity build-up as mortgage balance declines.
• Tax advantage of interest credit and/or deduction (consult your tax preparer).

Disadvantages

• Tougher to move at will- may need to sell first.
• Equity may vary; up, down or neutral.
• Generally, a larger up-front investment is required.
• You are totally responsible for property maintenance.

Resource:

Readers may want to visit Ginnie Mae's website for an easy to use rent versus buy calculator. As a guarantor of FHA, VA and Rural Housing loan programs, their mission entails the expansion of affordable housing in the United States.