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Renting vs. Buying a Home – What are the pros and cons of each?

If you’re currently renting a home, you may be giving thought to buying a home. But you’re perhaps questioning what are the benefits of owning a home versus renting one? Let’s take a look at the pros and cons of each.



  • Builds equity, especially here in Idaho, where home prices are appreciating rapidly.
  • Tax write-off benefits – you’re able to write off mortgage interest.
  • Unlimited freedom to customize the living space to your liking.
  • Mortgage payment is usually fixed, not subject to increasing (unless you have an adjustable-rate mortgage).
  • Provides security for you and your family.
  • The ultimate way to invest in yourself.
  • The American Dream


  • The homeowner is responsible for all repairs and maintenance.
  • The homeowner is responsible for paying property taxes.
  • The homeowner is responsible for paying for any HOA dues and is responsible for adhering to the CC&RS (the rules) set forth by the HOA.
  • Closing costs are higher.
  • Not feasible to move before living in the home for at least two years.
  • Equity is subject to market fluctuations and is out of the homeowner’s control.
  • From an investment standpoint, it’s not a liquid asset and takes longer to sell compared to stocks/bonds.

Renting a Home


  • Renter is not responsible for repairs or maintenance on the property
  • The renter is not tied to the home and can readily move
  • Allows you to test drive living in different types of houses.


  • Usually requires a long-term lease.
  • Rent prices may be higher than actual mortgage payment.
  • Rent can go up over time or change rapidly with little advance notice.
  • No tax write-off benefits
  • You’re not building your own equity
  • Landlord may decide to sell the home and you may be forced to move on short notice.
  • You can’t make any upgrades or changes without permission of the landlord.
  • May require a security deposit.

Some questions to ask yourself if you’re considering buying:

How long do you plan to live in the same place? If you’re thinking about staying put for longer than five years, buying a house may make better sense.

Does it make financial sense to own? Do you have the resources for a down payment and closing costs when buying a house?

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Get in touch with an agent to start your journey home.

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