Pros and Cons of Renting vs. Buying

When the time comes to move into a new living space, many people often rehash the age-old debate over renting versus buying. Finding a home takes a lot of research and patience, and many renters think about the usefulness of a different kind of monthly payment when it inevitably comes time to pack up and move.

The debate will continue in millions of homes across the United States every year, but the truth is that the question of renting or buying is a deeply personal one. There’s really no right answer, only a set of facts that can help you make the right choice for yourself and your family.

This guide will help you make this decision a bit easier to digest. Read on to understand the pros and cons of each option.

Rental properties offer a low accountability option for your cash flow needs.


The down payment on a rental property is limited to the security deposit. In many jurisdictions, this is capped at a certain maximum (often in relation to the monthly payment in rent) and is dwarfed by the down payment required when purchasing a property for your family. In addition to being more affordable upfront, renting unlocks a unique lack of accountability for those living in rental properties.

Because you don’t own the home, apartment, or room, there’s no need to worry about maintenance issues like cast iron pipe repair that can cost you severely if you haven’t maintained the property to a high standard. Iron pipes are a typical fitting in many older homes in the United States, yet without a solid maintenance plan over the course of many years, these iron pipes can begin to fail, leaving a homeowner in a lurch. Cast iron was a common material in building a generation ago and prized for its stability over the years. However, after many long seasons in a home, iron pipes begin to forms cracks that need the expertise of a plumber to fix. Cast iron pipes that are caught early in the corrosion cycle can be replaced easily, but those that have gone too long can cause significant damage in your primary residence.

Home improvements and general upkeep often factor heavily into the routine of a homeowner. Without the weight of a hefty home loan amount hanging over your head, as a tenant, you can focus on building your credit score, saving for life events, and even putting money aside for your own primary residence buying opportunity in the future—if that’s something you have your eye on, of course.

Renting means that you don’t necessarily need to buy furniture.

Many renters choose furnished apartments for their short-term needs. A down payment in the form of a security deposit is all most renters need to move into one of many beautiful and local Phoenix furnished apartments. Furnished apartments take away an extra layer of strain on the financial health of the individual. Rather than requiring furniture and appliances in addition to the place you will call home, renting a bundled space that includes all of this is a low-cost way to secure high-quality living arrangements. These also ensure maximum flexibility when it comes to moving or extending your stay in the home.

Renting is a cost-effective way to keep monthly payments low and eliminate the need to stress over breakages in your primary residence. However, renters face an uphill battle in another sense. Financially, rental property is increasingly beneficial to the homeowner rather than the renters themselves. Without the growing equity of homeownership, renters are only able to build wealth through a direct investment of new capital. This makes renting a great opportunity in the short term, yet one that builds toward a different future, for many in the United States and all around the world.

Buying your home builds wealth naturally.


Homeowners know that property investment is one of the smartest that a person can make. A mortgage (and hopefully one with a great interest rate) is a long-term commitment that is often problematic for many younger professionals who haven’t settled into a town or new job just yet. However, those who’ve found the community where they will put down roots and begin to grow might prefer to opt into a down payment on a real estate investment rather than a rental property. With high-quality interest rate offers and low closing costs, now is a great time to buy a home.

Finding the lowest investment home loan rates is another important consideration for individuals. Many renters and homeowners alike choose to purchase a rental property in order to begin generating rental income alongside their stock market or other commodity investments. Real estate is a fantastic place to park your money because monthly rental income can quickly and effectively pay down the mortgage due to your lender while the overall real estate market typically sees a continued march toward increased property values as the years go by.

Whether you buy a home that you will live in or one that creates monthly dividends for your investment portfolio, the real estate market is an asset class that most of us simply can’t pass on indefinitely.

That being said, there are some negative factors when it comes to purchasing a home. Just as renters are able to eliminate the maintenance concerns that come along with their rental (iron piles, broken windows, roof repairs, or cracks and corrosion throughout the home, for instance), homeowners are uniquely responsible for solving these problems in a prompt and responsible manner. This is especially important for rental property owners who have to continuously conduct inspections of their homes in order to provide tenants with a safe and well-kept space to live.

The choice isn’t always an easy one, but identifying your current priorities and building a plan that takes your current lifestyle considerations into account is the best way to identify a great value rental or home buying opportunity for your family.