Renting VS Buying. Which is better?

It's almost always better to buy a home than to rent. Renting is better only if at least one of the following applies:

• Your rent is lower than average—and you expect it to stay that way.
• You plan on moving in a few years.
• You can get better-than-average returns from whatever you're investing your cash into.
• The house you would buy is a lot larger than what you would rent.

It is good to buy a house rather than to rent a house. 

Renting or Buying:
Advantages and Disadvantages

If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "American Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a moment to review the following table to see how your situation fits in. Items in the green boxes are advantages and in the red boxes are disadvantages.

Renting		Buying
Advantages		Disadvantages
More fixed costs for the term of the lease		Variable costs
Not gaining equity, but not losing it either		Equity may go up, down, or stay stagnant
When the lease is up, you can just move		If you want to move, home generally must be sold
There is generally less work in maintaining a home or apartment		Work needs to be done by you--or paid for by you
Smaller amount of "up-front" cash		Generally a larger initial investment--the downpayment
Disadvantages		Advantages
No matter what happens with the value of the home, you will never gain equity		Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
Limited--or no--ability to personalize your living quarters		The ability to remodel and redecorate the home to match your needs and desires
No tax advantage to renting. Your landlord gets any and all tax breaks that are available		There can be tax advantages attached to home ownership. Consult competent legal and/or accounting advice for details for your situation

Differences between Renting and Owning A Home Lifelong renters have what I call a renters mentality when it comes to owning a home. They try to equate the characteristics of renting with owning a home. The question I get the most is how much is my security deposit going to be? When owning a home, there is no security deposit. You are obligated to take care of all the necessary repairs and to keep insurance on the home. Lenders include this as a stipulation before providing you with a mortgage. While the possibility of having to pay for any repairs around the house, and having to mow the lawn, shovel snow, etc can seem like a disadvantage to owning a home, there are many reasons to buy anyway. Of course the reasons are different for everyone, but the most common reasons tend to be very similar. One of the benefits of owning your own home is the tax benefits. The interest you pay each month on your loan balance is deductible, as are most of the closing costs of a loan. Consult with your accountant for more details. Another difference between renting and owning your own home is the ability to build equity. When you rent, you are building equity in a property owned by someone else. When you own your own home, you are building equity that you can tap into at a later date. When you own it, your home becomes an asset, not just a roof over your head. One of the differences between renting an owning is in your payment. When you own your home, other than slight increases in home owner's insurance and property taxes, your payment can stay pretty level for the life of the loan. When you rent, you should count on your payment going up every one to two years. Owning a home is the first real step in wealth building for most families. But, aside from the obvious financial benefits, homeownership shows your pride in, and commitment to your community. That level of pride and commitment is usually not found among the more transient community of renters. Owning a home is generally more expensive. Besides just the cost of purchasing a home there is the issue of time. Homeowners generally have a longer level of commitment to the property then a renter. Because of this they tend to take care of the property better and fix things that a renter might not.

Sources: michaelbluejay.com/house/rentvsbuy.html,
ourfamilyplace.com/homebuyer/buyorrent.html,
brokeroutpost.com/reference/39952.htm