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Owning |
Renting |
| Home Improvements |
When you make home improvements, you are increasing the value of your home. |
When you make home improvements, you are increasing the value of someone else's property. |
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| Term of Loan |
Whether you have a 15 year or 30 year loan, there will eventually be an end to your monthly payments. |
There will never be an end to your rent payments. You will have to pay rent payments even in your retirement age |
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| Equity |
When buying a Metro Detroit home it is like a forced savings plan. Each year when you pay down the mortgage you have a greater equity in the home. You own more of the home. |
When renting, there is no equity to be gained. |
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| Taxes |
Interest on home loans are tax deductible. |
There are no tax deductions when renting. |
| Tax Credits |
Sometimes the government offers tax credits for home improvements or energy saving improvements. |
There are no tax credits or tax deductions for improvements you make |
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| Cost of Living Increase |
With a fixed home loan, you pay the same amount per month for the entire term of your home loan. Even if inflation and the cost of living increases, the only thing about your home that increases is your equity as you pay off your mortgage. |
Whenever your lease is up your landlord can keep your rent the same, has the right to increase your rent, or ask you to move out. |
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| Capital Gains |
If you decide to sell after living in your home at least two years, all the equity gained is yours to keep...usually tax free! |
When renting you have gained nothing. You are just building the landlord's equity. You are just throwing your money out the window.. |