Costs of renting Monthly rent Security deposit Utilities electricity water garbage etc Renters insurance Advantages of renting Low movein costs Fixed monthly expenses Easy to move ID: 557165
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Slide1
Renting vs. OwningSlide2
Costs of renting
Monthly rent
Security depositUtilities – electricity, water, garbage, etc.Renter’s insurance Slide3
Advantages of renting
Low move-in costs
Fixed monthly expenses
Easy to move
Location choices (may be close to work or school)
Less maintenance and repair workFewer responsibilitiesMay offer extra amenities such as a tennis court or pool
Typically less expensive than home ownership
May be able to save for other wants or needs if renting a less expensive apartment
Other expenses may be included in rent payment such as electricity, water, sewer, and/or garbageSlide4
Disadvantages of renting
Subject to terms of a lease
Rent may change with little noticeLess privacy and transient neighbors.
Restrictions on noise level, pets, etc.
Fewer opportunities to upgrade apartment such as new carpet, paint, or wallpaper.
When leaving a property, no equity is returned as it would be if selling a home.
No tax deductions
May lose rental if the property is sold.Slide5
Costs of ownership
Monthly mortgage payments
FixedARM Down payment (one time cost)
Closing costs (one time cost)
Utilities – electricity, water, garbage, etc.
Homeowner’s insuranceReal estate property taxesMaintenance Slide6
Advantages of ownership
Build equity which can be borrowed against if necessary
Pride of ownership
Feel more comfortable and have more privacy
Stable mortgage payments
More room and storageImprovement of buyer’s credit rating
Income tax deductions for property taxes and mortgage interest
Potential for property to increase in value
Free to make home improvements and have pets (items typically not allowed in rentals)Slide7
Disadvantages of ownership
Large down payment
Move-in costsInsurance costs
Possible for property to decrease in value
Time, money, and energy commitment
Repair and maintenance costs
Property taxes can raise substantially
Money is tied up in the home
May take several months to sell a home if trying to relocateSlide8
Video
Renting Vs. Owning a Home
Renting Vs. Owning