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Renting Vs. Buying (The Big Question)

Ok, so this question has crossed your mind at least once before, right? No? Liar!! It’s a great question. Every decision we face, especially financially speaking, should be taken into serious consideration. How will this affect my future, my family’s future, our goals, our needs, our vision?…..and so on. (I could come up with a million more questions.) There are a few key takeaways when faced with this decision. They both have their own pros and cons list, and typically the result is tailored to each dweller’s particular needs.


One of the perks many renters enjoy is the predictable expenses they will face each month. They know the amount agreed upon on the lease, the renters insurance, the bills do not vary much, and they will not come out of pocket when the roof needs a replacement. These are positives. Though, some of these positives only pertain to the lease terms. If the owner decides to increase the rent amount (typically a 2.3% increase yearly in most markets) you will be subject to that increase or finding a moving company to help you get into your new lease. Home ownership, if you get a fixed-rate mortgage, you will know what to expect for 30 years, given some increases in insurance and taxes being a possibility. Many renters feel they are renting for immediate affordability until they can save up for something they “can purchase.” Although this is true, many renters are unaware of their purchase affordability until they speak with a mortgage lender about their options. Most of the time, they are pleasantly surprised with the homes they are able to afford! (Not all mortgage lenders are created equal, do your research and reach out to a Real Estate professional to help you choose the right option for you!)

Other Pros:

  • No time spent on renovations
  • More flexibility on moving locations (subject to buying out current lease, and moving companies)
  • Yard Maintenance can be worked into lease agreement (usually at an additional cost)


Some of the biggest reasons people decide to purchase their own little slice of Mother Earth is for stability, equity, tax benefits, and as a means to building long term wealth. Of course timing can play a large role in a few of these aspects. The real estate market can be a tricky world to navigate. Of course, we would recommend consulting a professional first (Probably somebody with the Crawford/Willis Group @ eXp Realty…). Interest rates play a huge role in affordability and long term value. Over a span of 30 years (typical loan life) interest can add up. Getting in with a low rate can increase affordability of purchase price while lowering the monthly mortgage associated with the property! The Federal Reserve Bank of St. Louis reports that the average price of homes sold in the United States rose 28% in 10 years starting in 2009 and 10% from 2014 to 2019. Even if the value of the structure itself depreciates, the land on which it sits can become more valuable. You are investing in an asset for yourself rather than a property management company.

Other Pros:

  • Making a House YOUR Home
  • Getting to know your neighbors
  • Not paying someone else’s mortgage
  • Adding sweat equity with any work put into the home
  • Returns on Investment

In conclusion, the decision is based on each individual’s current situation. For example, someone with a nomadic lifestyle/career may want to look at renting until they find a location they can see themselves planting roots in for at least a 3 year period, as a general “Rule of Thumb”. For someone who is looking at their finances with a future mindset, purchasing a house would be of high consideration.

** Below is the link to a chart that Emily Keown helped put together to assist parents who may have a child moving away to college for a 4 year period. The comparison can give you a financial look at what the difference can be. (The rental rates are based on local numbers to a specified market). **

Rentals vs. Ownership

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