Renting a home vs. Buying a home
Renting a home vs. Buying a home
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Cost(s) |
Responsibilities |
Investment value |
Miscellaneous |
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Renting a House |
At least, 1st + Last months rent for deposit. |
Appliance costs, as well as a minimum maintenance fee for anything that might to be repaired while living in the property. |
Unless the tenant is in an agreement to "rent to own", there is no long term financial advantage to renting a house. |
There are many more freedoms to renting a house rather than an apartment. There is usually more space, as well as a back yard in some instances. |
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Buying a House |
Down payment usually requires at least 3-5% of total cost of property value. |
All bills, repairs, appliances, as well as, taxes and association fees are paid by the homeowner. |
When owning a home, the homeowner will build equity n the property overtime. Owning a home also improves your credit rating over time. |
A house offers you the chance to build credit and becomes a long term investment. Since it is "your" property, there are fewer restrictions on what you can, and can not do to your house. |
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Renting an Apartment |
Deposit is usually between $200-500. |
Utility bills and the price of any damages to the apartment are the financial responsibility of the tenant. |
Though renters history effects credit, There is no long term investment value while renting an apartment. |
Renting an apartment requires no long-term commitment, there are no maintenance costs, and is affordable. |
