Owning a home can be the ultimate fulfillment of the American dream. Often many answers hinder a first time home buyer. What is the process? Is owning really better than renting? How do I get pre-approved for a loan? I want to buy a new home should I still use a Realtor? The answer is…maybe.

Each buyers individual needs & financial situation changes this answer. This is why speaking to a professional is so important. Since there are specific obligations to your current lease and management has obligations to each owner a plan should be discussed. In doing so all may benefit from a tenant deciding to leave a rental and purchasing a home.

Pros & Cons of Renting -

Pros

• Flexibility to move easier when lease ends

• Steady monthly payment for the term of the lease

• Landlord handles repairs and maintenance

• May be cheaper if for a shorter period of time

Cons

• Historically more expensive long term as no equity is created

• No equity in a tangible asset

• No tax deductions

• No or little choice on remaining in the unit long term

• Additional fees and deposit requirements that come with leasing

• Pet requirements

• Not free to renovate or alter the property

Pros & Cons of Ownership -

Pros

• Your monthly payment goes towards your equity and eventual full ownership/equity

• Tax credits help offset some costs to owning your home - $500,000 married capital gain deferred*

• Option to sell the home for a profit

• The abiliity to leverage your equity for loans, cash-out-refinances and home equity lines of credit

• Freedom to renovate or make changes

• Pride of ownership

• Stability (you, not the landlord, can choose when you’ll move)

Cons

• Down payment expense

• Maintenance is paid by you now

• How long you think you’ll live there

• Cost of renting a similar home for shorter period

• Purchase price

• Flexibility on where you want to live

NAR chart for historical differences between renting & owning. Historically 6-8 years is when home ownership gains are realized*.