Cons of Renting vs Pros of Buying a Home

Are you still renting? Don’t do that to yourself!

Although many renters feel that renting is less expensive than buying, according to Jed Kolko, chief economist at Trulia, buying a home can be 45 percent less expensive than renting. 

If you want flexibility or can’t afford up-front fees, renting is a cheap option, but knowing the drawbacks might help you better balance your options. Here are some cons of renting, and some reasons why you should buy a home!

Cons of renting:

  • The landlord has the right to raise the rent at any time.
  • If you rent a house, you can’t build equity. You may live there, but it will not be your property (you are literally wasting your money).
  • Renting a property does not qualify you for any tax benefits.
  • Without the landlord’s approval, you cannot make any changes to your apartment or home.
  • Many houses for rent do not allow pets. It can be quite a challenge to find a place to rent that allows pets if you are an animal lover.
  • Your landlord has the right to evict you at any time. The property can be sold to make a profit if real estate values increase.
  • You must follow all the rules and obligations outlined in your lease.

Reasons to buy a home:

  • Owning a house can provide you with stability and a sense of belonging. You can also enjoy the pride that comes with owning a house.
  • Because you own the property, you are free to redecorate and renovate it however you like.
  • Homes are good investments. You can buy one and then rent it out to earn a monthly income.
  • Tax benefits. If you pay the mortgage interest, you can deduct it. In addition, you build equity as you pay off the loan.
  • This gives you the freedom to live however you wish. Without anyone’s permission, you can have pets, alter appliances, renovate, and do a lot more.
  • You have your own personal space.

There are financial benefits to not renting. You will not only have a stable residence and the opportunity to grow equity, but you will also be eligible for savings and tax advantages as a result of becoming a homeowner. According to Ginnie Mae, the average homeowner’s monthly payment will be less than a tenant’s monthly rent over the course of six years. 

Homeowners can also benefit from government tax breaks. Property taxes and interest on a mortgage are both tax deductible. Other benefits of homeownership include capital gains exemption and energy-saving rebates or tax incentives from firms or your state government if you install green appliances.

CHER makes first-time HOMEOWNERSHIP simple through co-ownership. Co-ownership is when two or more people buy a home and build equity. It allows you to multiply your buying power and afford homes that you wouldn’t otherwise be able to just on your own

Contact us if you are looking forward to buying a home and building equity! We will help you throughout the process, saving you time and an average of $5000. Our lending partners are here to help you regardless of income or credit score.


We will get you PRE-QUALIFIED in just 5 minutes!

Follow Us

NMLS: #1898741 DRE: #02094241

CHER Admin
Author: CHER Admin