This describes why owning should be less expensive than renting. Your monthly payment might be higher then your monthly rent but tax benefits and equity appreciation will make up for the difference. Another major benefit of owning your own home is that you don't have to subject yourself to the whims of a landlord. When you own your home, the good news is that you're generally in control.

If you are thinking about renting here are some benefits:

Moving is easy (you can move within a short time).

Amenities may be available (pool, tennis courts, social/activity rooms, laundry facilities, security for apartment renters).

You have few responsibilities.

Maintenance and repairs are handled by the owner.

There is no large down payment, only a security deposit.

Some monthly expenditure (rent) is fixed making it easier to budget.

There is no chance for financial loss of investment (beyond the amount of the lease).

There is a sense of security from nearby neighbors.

You can look over the community and move again.

Moving-in costs are low.

It is easier if you travel a lot, either for your job or pleasure.

However, renting has some disadvantages:

It offers no special tax deductions.

There are no potential gains from the rising value of property.

You usually get less space for the money.

Changes cannot be made or are limited in scope.

Rent rises with inflation except where there are many rental units available.

You will probably have restrictions on noise level, pet ownership, or children.

For more information, see Choosing to Rent.

If you are thinking about buying a house, consider the following advantages:

A house is a form of forced savings (you make payments on an asset that may grow in value--many families would never accumulate assets otherwise).

Homeowners often have a sense of pride about their home and community.

A homeowner may have a better credit rating (equity in a home improves the credit status of the family and can be used as collateral for an emergency loan).

Mortgage payments contribute to an investment, particularly if the property is located where it increases in value over a period of years.

Monthly payments remain relatively constant for many years (fixed loan), thus housing costs are stabilized because present and future costs can be estimated and planned.

Interest on mortgage monies and taxes are legitimate income tax deductions.

The house may increase in value, resulting in a significant gain in net worth.

Ownership may contribute to security, especially in retirement years when income normally decreases.

A homeowner can borrow against his/her equity, as the value of the house increases against what is owed on it.

More space may be available for family members and their activities.

A homeowner has freedom to make improvements and changes to the house and surroundings as desired (although a development or association may have restrictions and prohibitions).

Home ownership can contribute to the general well-being and sense of "roots" of the family, especially for children.

Homeowners generally are concerned about community affairs and how they may affect their property.

The disadvantages of home ownership may outweigh advantages for some people because:

A substantial down payment is needed.

A house requires a big commitment in time, emotions, and money.

The house may decrease in value if the neighborhood deteriorates or changes quickly; thus resale may be a problem.

The homeowner may have limited money for other purchases or activities since his or her money is tied up in the house.

Maintenance and repairs may be costly and take a great deal of time and effort. Owning a house requires money for insurance, and a loss of the house as a result of a natural disaster (tornado, flood, and hurricane) could mean a serious financial burden.

Some families have difficulty budgeting for maintenance, repairs, home improvements, and/or home ownership dues.

Real property taxes could increase dramatically.

Total housing costs may take too much of the budget, resulting in potential cash flow problems.

The family may have higher moving-in costs as new items may have to be purchased for a house.

The family may feel less secure if neighbors are not near.

The house may be too large after children leave home.

Security may be a problem if you travel a lot.

Unexpected loss of income due to job termination or unemployment may limit money available for home ownership costs.

Renting and Inflation
Face it paying rent is probably the less productive way to build your own wealth. The only one that is happy with your payment is the landlord. Although the rent payment in some cases will be significantly lower, you have to take in consideration the tax benefits, and equity build up to fully understand the impact on your financial future.

Although the cost of purchasing a home increases over the years, the rapid growing economy in the market place supported the prices thus far. Rent increased which was a natural and predicted occurrence to the housing market still makes it a better future investment to purchase a home and not to rent one. The bulk of your housing costs are not exposed to inflation, so even if you must stretch a little to buy a home today, in the decades ahead, you should be glad that you did.

No More Landlords
A major benefit of owning your own home is that you don't have to subject yourself to the whims of a landlord. The fundamental problem with some landlords is that they are slow to fix problems and make improvements.

When you own your home, you're in control; and since it’s your home you will usually try to up keep the place.

In the past years with the booming housing market one of the biggest risk of renting is that landlords may decide to sell the building although you are protected by the rental contract, once it’s expired you run the risk of much higher rental fees or even looking for a new place all together.

It’s always better to be in the driver seat, and be the king of your domain.

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Your home should become an important part of your financial future planning. Your net worth that is, the difference between your assets such as bank accounts, retirement accounts, home value etc. and your liabilities which are your total calculated debts. Since homes generally increase in value over the years and your mortgage debt is decreased, even if you're home is located in an area that doesn't see much appreciation, you will benefit from the monthly forced savings that results from paying down the remaining balance due on your mortgage.

There are many way to enjoy your accumulated equity which is the difference between the market value of a home and the outstanding loan on the home.

Down Sizing - Usually used as a retirement technique. Sell your larger and more expensive home replace it with one costing less, and free large portion of your equity or become an owner mortgage free - remember, you can sell your home and realize up to $250,000 in tax-free profits if you're single; $500,000 if married

Home equity loans - One very common way to tap your home's equity is through borrowing. Since the interest you pay is generally tax-deductible, it is an added benefit

Reverse Mortgage. Under this arrangement, the lender sends you a monthly check you can spend however you want. Meanwhile, a debt balance is built up against the property. This debt will be paid off when the property is finally sold.

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