| Buying: |
Advantages |
Disadvantages |
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If you have a fixed rate loan your payment will remain the same. (Except for property tax and insurance which may go up or down each year.) |
You must make the monthly mortgage payment every month. Not making the payment could affect your credit rating. |
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Your loan balance will decrease over time. |
If you wish to move, you might have to sell the home or consider renting it out to someone else. |
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The value may increase over time, providing enough of a down payment necessary to move up to a larger home. |
The value could decrease |
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If this is a home that you will live in, you will be able to write-off mortgage interest and taxes. (Please consult an accountant for more information) |
You will be responsible for any improvements, repairs or upgrades to the home. |
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You can change the look and feel of your home to your liking. |
The down payment can be considerable |
| Renting: |
Advantages |
Disadvantages |
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If something breaks, such as a refrigerator, you usually are not responsible for replacing or repairing it. |
No hedge against inflation and you are subject to current market rental rates. |
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If you are not happy with the look of your place, you can move to a new location very easy. |
If property values increase, you won't benefit. |
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You might have access to public pools and recreation rooms at no additional cost. |
No tax advantages for renting. |
