The Stearns Team

Decisions: Renting vs Buying

 An average adult makes about 35,000 decisions every day, and having to decide whether you should rent or buy a house is not an exception.

Is it better to rent than buy? Or is it better the other way around?

This is where we come in; let us help you decide whether buying or renting is more favorable for you and your budget.


  1. Advantages and Disadvantages


Renting Buying
No matter what happens with the value of    the home, you will never gain equality


Equity may go up, down, or stay stagnant
Limited/no ability to personalize your living quarters


Work needs to be done/paid for by you
No tax advantage to renting. Your landlord gets any and all tax breaks that are available. Generally a larger initial investment

(down payment)



Renting Buying
Not gaining equity, but not losing it either.


Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
There is generally less work in maintaining a home or apartment. The ability to remodel and redecorate the home to match your needs and desires


Smaller amount of “upfront cash” There can be tax advantages attached to home ownership.

(consult component legal and/or accounting advice for details for your situations)


Now we know some advantages and disadvantages of buying and renting, it’s up to us to compare which of the two is more tolerable for us because everything will eventually have an upside and a downside whether we like it or not.


  1. Long-term or Short-term

People usually associate buying a home as being long-term and that short-term is for renting.

Let’s say you had an idea of buying a house, and it pushed through. After a short while, you realized that you no longer want it. We therefore conclude that buying a house could also mean short-term, because in this situation you would most likely have to sell it.

In another instance, it could also be that you rented a house/an apartment but all of the sudden you grew accustomed to the place. You then realize that you want to have it long-term.

It’s normal for people to make mistakes. We cannot deny that, but what we can do is try to avoid making them—especially in deciding whether to buy or rent a house.


Here are some ideas that might help:

Environment: City vs. Suburbs

You need to know which environment you are more comfortable with.

Here are some pros and cons:


  • City living offers you an exciting experience and will give you a wide selection of amenities (restaurants, malls, cafes and nightlife). If you are the type of person that enjoys going to the movies, watching concerts, going shopping, or just simply hanging out at the nearest coffee shop and taking a sip of your favorite caffeine-filled concoction, then this environment would work best for you.
  • The city is also very favorable when it comes to children. They will have a unique atmosphere in which they would be more exposed to culture and a larger school choice with different programs to enroll in.
  • The problem with living in the city is that it can be a busy and stressful environment filled with noise, traffic and pollution. Living in the city also means a higher cost of living.


  •  Are you more comfortable with a quiet environment? Do you enjoy the outdoors? If that’s a yes, then the suburbs is the right place for you.
  •  The suburbs is not heavily populated, which means that there can be less traffic. Single family homes with backyards are common in the suburbs. Therefore, houses have more space for the family, especially for children who love to run around.
  •  Living in the suburbs means that there are less cultural amenities like museums, fancy restaurants, and festivals. It can sometimes be a dull environment and unless you own a car, you have no choice but to commute. Although you can save money with your home, transportation costs will add up.


Which is cheaper?

You can use this link to calculate which would be cheaper:

Buying or Renting:


Most people conclude that living in the suburbs is cheaper compared to city living. However, we can’t be sure about that just yet. We still need to do our own research as well with regards to the costs between buying or renting a house. The link above is one example.

There are also other links you could visit like the ones below. à->Rent vs. Buy ->How much can I afford? ->Mortgage Calculator  -> Mortgage rates  -> Rent vs. Buy Calculator -> Rent vs. Buy Calculator

“Difficult roads often lead to beautiful destination”

                                                                                                                                               -Zig Ziglar                                                   

Leave a Reply

Your email address will not be published. Required fields are marked *