Diane Schwartz

Providing Real Estate Solutions

Renting

Pros

  • When renting, you have more mobility.  If you don't like the neighborhood, you can move in a year.  

  • There is less commitment.  

  • Your landlord takes care of repairs and maintenance of the property.

  • Your credit score doesn't have to be perfect.  Landlords often accept tenants with lower scores.

Cons

  • You're not investing in your future.  Monthly rent payments pay the landlords mortgage - plus some.

  • Landlord can raise the rent.

  • Can't decorate the way you want to.

  • Usually there is a "No Pet" policy.

  • Can't dedct rent on your taxes.

Buying

Pros

  • You can make any modifications that you want.  

  • You are investing in your own future.

  • There are tax benefits. 

  • You can have pets.

  • There's a sense of belonging to a community.

  • Mortgage rates are still low.

Cons

  • You are responsible for all repairs.  Some can be very costly.

  • Your mobility depends on whether you can sell your house quickly.

Buy Now or Wait and Save a Larger Down Payment?

Are you better off buying a home with a lower down payment or continue renting while you save for a larger down payment?  Find which is better for you?

Rent vs Buy Calculator

If you plan to stay in the same home for more than a couple of years, buying makes more sense, in most areas. In the last year, a 3-bedroom, 1 1/2 bath, 1,050 average square foot home, in Oakland County, rented for a median price of $1,300/month.  The median price to purchase the same type of house was $133,000.  According to the graph below, if you add in the additional costs of buying or renting, within 2 years - it's cheaper to buy!  Check out this Rent vs Buy calculator!