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.)
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.