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Many Americans doubt their ability to cover the costs of buying a home. But that only means exchanging monthly mortgage payments for monthly rent payments.
Advantages of Renting
- Fixed rent
- No property taxes or HOA fees
- Lower insurance costs (no homeowners insurance)
- Your landlord is responsible for all repairs and maintenance
- Various amenities (e.g., pools, gyms, common areas, etc.)
Furthermore, you’re usually only locked into a year-to-year contract when you rent. Unlike buying a house, you won’t be tied to your rental property any longer than you want, which can be ideal for young professionals, college students, or those who need to relocate frequently.
Advantages of Owning a Home
- Homeowners build equity with each mortgage payment
- Mortgage payments are often cheaper than renting
- Freedom to modify the property as you see fit
- More room for you and your family
- No need to share living spaces or walls with neighbors
- Available tax deductions
For many Americans, owning vs. renting can be a better option for building equity meaning the value you invest in a property. Otherwise, your rental monthly payments merely go to support your landlord, which isn’t the best long-term outlook.
