| Should I Rent or Buy? |
| |
If You Rent |
If You Buy |
| Cost |
Deposit, monthly rent payment, renters' insurance, and
utilities |
Down payment, closing costs, insurance, property taxes,
utilities, homeowners' association (HOA) fees, and more |
| Payments |
Rent can go up at the end of your lease |
Fixed-rate mortgages stay the same, but taxes and insurance may increase |
| Tax savings |
None |
Mortgage interest, taxes and most mortgage loan points
are tax deductible |
Equity
(the portion of the property you own) |
None |
May increase with every mortgage payment, depending on the terms of the loan; may go up if your home increases in value and may drop if your home
decreases in value. |
| Moving |
Easy to move out; possible cost if you move before the lease is up; landlord
may ask you to move at the end of a lease. A "military" clause
in the lease or renter’s agreement should allow
you—without penalty—to break the agreement if you are transferred or decide to move on base before the lease ends. Consider having your base housing office review the lease before you sign it. |
Takes time and costs money to sell; can be rented, but
you will have to manage the property from your new location or pay someone to do it for you. |
| Timeframe |
May
be best if you will be living in an area fewer than three
years |
Can make sense if you will be living there five or six years |
