- The cost of buying can become more complicated and varies with each transaction than renting.
- Whether renting is better than buying depends on many factors.
- The choice between buying a home and renting one is among the biggest financial decisions that anyone can make.
The information listed here will assist you in helping answer this question. Included are statistics and studies on home owners and renters as well as financing options and tips.
Buy vs. Rent Comparison The chart below shows a cost comparison for a renter and a homeowner over a 7 year period.
The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner’s payment is lower than the renter’s monthly payment
With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after 3 years
Source: Ginnie Mae. Click on image to enlarge.