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	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 Feel that buying a house is the right route for you? Start by reviewing the checklist. Feeling that renting makes more sense? See Apartments.com for listings across the country
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	RECOMMENDED READING
	100 Questions Every First-Time Home Buyer Should Ask by Ilyce R. Glink. Important questions that every first-time home buyer should be asking. Available at Amazon.com
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