- Flexibility to move or upgrade at almost any time, depending upon the lease
- Build up savings; renters are responsible only for paying the monthly payment as stipulated by the contract, paying for utilities (power, gas, and electricity) and for limited kinds of maintenance to the property
- Benefits tenants whose lifestyles do not allow them to purchase a home or whose incomes do not allow them to afford a mortgage loan
- Renters do not earn equity in the home
- No tax incentive associated with renting
- Annual rent increases can outpace the economy
- Sense of stability and security.
- Tax benefits; owners are able to write off mortgage interest and taxes paid on the home on their income taxes*.
- Accrue equity
- Create retirement security
- Financial investment, including securing the mortgage loan (with the down payment, home inspection and any other associated fees)
- Property taxes
- Maintaining the property and making home repairs
- Potential lack of flexibility to move when the market is not favorable
*Please consult a tax advisor for further information regarding the deductibility of interest and charges.
Review Your Finances
- If choosing to purchase, the purchaser should review all costs associated with the initial investment and have savings or a savings plan in place to help cover unexpected costs.
- If choosing to rent, the renter should make monthly investments in a savings plan. Investing money for the future can make a transition from renter to homeowner smoother.