Buying Versus Renting

Although renting gives the advantage of not having to worry about maintenance and other financial obligations associated with owning property, home ownership offers tax benefits as well as the freedom to make decisions about your home. Unlike renters, homeowners who secure a fixed-rate loan can lock in their monthly housing costs -- maintenance and natural disasters notwithstanding. Even if, in some markets, your mortgage payments would be greater than rent for a comparable property, the tax breaks available to homeowners can make the cost of owning a home lower than the cost of renting.

Maintenance expenses Experts generally agree that you can plan on annually spending 1 percent of the purchase price of your house on repairing gutters, caulking windows, sealing your driveway, and the many other maintenance chores that come with the privilege of homeownership. Newer homes may cost less to maintain than older homes. It also depends on how well the house has been maintained over the years.