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The Pros & Cons of Renting vs. Buying a House

Banking for Individuals

pros and cons of buying a house

ARE YOU CONSIDERING THE BENEFITS OF HOMEOWNERSHIP?


Purchasing a home is a big decision. Whether it’s purchasing to build equity and provide a nest egg for the future or renting to have low maintenance and the flexibility to move. If you live in Pennsylvania, New Jersey, Delaware, or Ohio, let Univest help you weigh the pros and cons of renting versus buying your first home.

  • Greater privacy
  • Homes typically increase in value
  • Based on a fixed-rate mortgage, your costs are predictable and more stable than renting
  • Enjoy tax deductions
  • Build a strong credit history
  • Pride in homeownership, which also closely ties you to your community
  • Customize your house as you see fit
  • You are your own landlord
  • Create equity for the future

  • Long-term financial commitment.
  • All maintenance on your home is your responsibility, including inexpensive repairs like fixing a leaky faucet to costly repairs like replacing a roof.
  • With ties to your community, it could be more difficult to suddenly pick up and leave.
  • Mortgage payments are generally higher than rent payments.
  • Buying a home typically requires a down payment, closing costs and moving expenses.
  • The value of your house may not increase, especially during the first few years.
  • Borrowing against your home equity can leave you ‘house poor’.

  • Payments tend to be lower than a comparable house payment
  • Rent may cover utility costs for an additional savings 
  • Relocating is easier
  • Maintenance and repairs are not your responsibility
  • Credit requirements are less strict

  • Unable to enjoy tax deductions
  • Your rent will most likely grow from year to year
  • No equity built
  • More difficult and expensive to have pets

Please Scroll to the left to view the rest of the table
RENTING VS. BUYING
  ADVANTAGES DISADVANTAGES
Homeownership
  • Privacy
  • Usually a good investment
  • More stable housing costs from year to year
  • Pride in ownership and strong community ties
  • Tax incentives
  • Build equity
  • Long-term commitment
  • Maintenance and repair costs
  • Lack of flexibility
  • Usually more expensive than renting
  • High up-front costs
  • Foreclosure
Renting
  • Lower housing costs
  • Shorter-term commitment
  • No/minimal maintenance and repair costs
  • No tax incentives
  • No fixed housing costs
  • No building of equity






New homeowners
Still unsure if renting or buying is best for you? Try our Rent vs. Buy Calculator!
Need some expert advice? Contact one of our experienced Home Loan Consultants!

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