Did you know that over $13 trillion dollars is stashed away in home equity, spread over more than 75 million homeowners in the US? That is about $175,000 per homeowner - according to the Federal Reserve Board.
The evidence is undeniable when it comes to the claim that home-ownership is a critical building block of establishing wealth. Yet, there are still specific situations that may dictate renting as a better financial decision than buying. Let's dive in and take a look at some of the Pro's and Con's of both Buying and Renting.
What are the pros to renting?
Flexibility - Being able to move to a different city or state without having to sell your home first.
Low or No Maintenance Costs - Your landlord is typically responsibly for maintaining and repairing the property.
No Down Payment Needed - Other than the first month's rent and security deposit, the costs to enter into a rental agreement are relatively low.
Less Risk - Because the rent is fixed and no maintenance costs you know what your monthly expenses will be, and will be able to budget for an unexpected life event.