The choice between renting or buying a home could be one of the biggest decisions you ever make.  It's a debate that's been going strong for as long as houses have been available to rent or buy, and there are some serious pros and cons to consider on both sides. 

It's not always an easy choice, and it's not unusual to go back and forth.  In the end, it comes down to a lot of individual questions, many of which only you can answer.  Your budget and future plans always come into play, along with variables like housing costs in your specific area.  Still, weighing all the arguments for buying vs. renting is always a good way to start.
 

Advantages of Buying a Home

• There are many cases in which the cost of owning a home is less than the cost of renting one, especially in the long term. 
  
  
• Buyers get much more personal freedom over their home. From remodeling and making improvements to keeping pets and changing your landscaping, you never have to get permission from a landlord. 
  
  
• Buying is a good financial investment.  Over time, you'll build up equity on your home, and continuing to pay off your mortgage on time will also be good for your credit score.  Plus, property values almost always go up, so if you eventually decide to sell your home, you're likely to make a profit. 
  
  
• When you buy your home, you get a sense of accomplishment and pride of ownership that is difficult to quantify. 

Disadvantages of Buying a Home

• Buying a home can sometimes come with a lot of stress, anxiety and paperwork.  Some people are better equipped to handle this than others, but for first-time buyers, it can feel very difficult and overwhelming.  At i-bank, though, our mortgage experts will be by your side every step of the way to help!
  
  
• There are often many long-term "hidden" costs of home ownership to consider, including property taxes, insurance, maintenance and repairs.  Make sure you have a nest egg saved up so you can handle these expenses when they arise. 
  
  
• Homeowners have less flexibility to move than renters, so buying a home is usually not a good idea if you don't see yourself living in the same place for at least five years. 
  
  
• Buying can be risky, especially if you are counting on your property value to go up over time.  While property values tend to increase over time, it also depends on where and when you bought your home, as well as conditions in the housing market overall.

Advantages of Renting a Home

• The initial investment to rent a home or apartment is quite low compared to buying, and monthly costs are often (but not always) lower as well.  This makes renting a good way to save money, at least if you only plan on renting for a few years. 
  
  
• Renters have more freedom to uproot and move if they choose.  Renting is often seen as a good way to try out a house, neighborhood or city if you're not yet sure if you want to live there long-term. 
  
  
• When you rent a home, you're not responsible for ongoing maintenance or repairs.  If your roof needs to be fixed or the furnace breaks, your landlord is the one responsible for fixing it. 
  
  
• Renting is a relatively low-stakes move.  You don't have to worry about fluctuating property values or changes in the housing market, and you won't be responsible for paying property taxes. 

Disadvantages of Renting a Home

• Renting isn't a good long-term investment.  You won't build equity or truly own anything at the end of the day.  The money you pay in rent isn't really paying for the home itself; it's paying for the time you spend living there. 
  
  
• You can't make changes to your home when you rent.  Even minor alterations come with a risk of losing your deposit, and major renovations are totally out of the question. 
  
  
• Renters tend not to put down firm roots, which can be an advantage or a disadvantage depending on your perspective.  You won't get the pride of home ownership, and you may not feel like a true part of your community. 
  
  
• Your landlord could sell the property or raise the rent if they so choose.  Make sure you understand the specific terms surrounding if and when rent can be increased. 

At the end of the day, only you can answer the question of whether renting or buying is right for you.  If you're still building your financial nest egg, or if you expect major life changes like moving or changing careers in the next few years, it might be better to stick with renting for now.  But if you want to put down roots in a city you love, and you have the financial stability to do so, it might be time to make the leap to home ownership.