| To Rent or to Buy |
| |
Pros |
Cons |
| Renting |
Flexibility (can relocate easily) |
No equity |
| Can invest money elsewhere (stock market) |
Annual rent increase could outpace inflation |
| No upkeep fees (drippy faucets, broken dishwashers, etc.) |
|
| Buying |
Tax-break: deduct mortgage interest and property taxes |
Property tax and upkeep |
| Potential tax-free capital gain |
Mortgage costs |
| Emotional satisfaction |
Less flexibility should you want to move; in very bad housing markets, you could lose principal |
