The decision to rent or buy might be primarily financial, but your lifestyle and future plans or goals should also be a factor.
Renting offers more flexibility and less upfront costs, but it does not build equity or offer tax benefits.
Owning requires a large financial commitment and more responsibility, but provides stability and potential for building equity.
Renting
Pros:
1.Fewer upfront costs and paperwork
2.Freedom to be more mobile
3.Not responsible for maintenance or repairs
4.No need to worry about falling home values
5.Builds credit (if your landlord reports rent payments to the credit bureaus)
6.No property tax bills
Cons:
1.Landlord could raise rent
2.Might have to relocate on short notice if the landlord decides to sell the property
3.Builds equity for the landlord, not you
4.Limited vacancies in competitive rental markets
5.No tax benefits
6.Less freedom in design choices (paint colors, appliances)
Renting doesn’t require a down payment or a mortgage, and that freedom is appealing to many people. Most rental properties do require a security deposit, though: You’ll usually put down the first and final months’ rent payments when you sign a lease.