When it comes to choosing a place to live, deciding whether to buy or rent a home is one of the biggest decisions you’ll ever make. The choice will impact your lifestyle, your financial well-being and also affects your future. In this guide, we’ll break down the pros and cons of buying vs renting a home and help you determine which option is best for you.
5 Reasons Why Buying a Home is a Smart Decision
- Building equity. Over time, as you pay off your mortgage, you’ll be building equity in your home.
- Tax benefits. The interest paid on a mortgage and property taxes can be tax-deductible.
- Appreciation. Real estate tends to appreciate over time, so the value of your home may increase.
- Control over the property. When you own a home, you have more control over the property and can make changes as you see fit.
- Potential long-term investment. Owning a home can be a smart long-term investment, especially if you plan to stay in one place for a while.
5 Reasons Why Renting a Home is a Smart Decision
- Flexibility. Renting a home gives you the flexibility to move around more easily than when you own a home.
- Lower upfront costs. Renting requires less money upfront compared to buying a home.
- No maintenance responsibilities. Renting a home means you don’t have to worry about the cost and responsibility of maintaining it.
- Lower long-term costs. Renting can be less expensive than buying over the long-term.
- Greater freedom to try out new areas. Renting allows you to live in different neighborhoods or areas before deciding on a place to buy.
By understanding the advantages and disadvantages of buying vs renting a home, you’ll be able to make an informed decision that is right for you.
|Presented by the Financial Planning Committee of Lake Street, an SEC Registered Investment Advisor |
The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. This report is not intended to be a client-specific suitability analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Diversification does not ensure a profit or guarantee against a loss. There is no assurance that any investment strategy will be successful. Investing involves risk and you may incur a profit or a loss.