Compared to renting, purchasing your home most likely to be a better option if you have the cash to purchase the property, and if you qualify for a loan. This requires decent credit scores and money for deposit and down payment, plus closing cost. Many lenders require you to have a reserve fund or significant savings account. Even if you do have the money to purchase a home, in some situations renting is preferred. It is a decision each potential homeowner must consider.

Freedoms

• Personal freedoms come with both renting and purchasing a home. For the renter, it is easier to pack up and move. While the renter has an obligation to give notice to the property manager prior to moving, the renter does not need to worry about putting the property up for sale or preparing it for rent if he needs to move. The homeowner has more freedom regarding the use of the property compared to a renter. While the homeowner must comply with local zoning regulations and applicable homeowner association rules, the owner has more latitude regarding pets on the property and decorating or remodeling.
  

Expenses

• It is easier to make a budget when renting, as the tenant is typically not responsible for making repairs on residential property. This allows the tenant to budget for the rent payment without worrying about the unexpected expense of a dishwasher that breaks down or a roof that needs repair. A homeowner is responsible for the maintenance on the property, as well as repairs, property tax and higher insurance premiums.

Tax Benefits

• There are tax benefits for the homeowner. He can typically write off interest on the property loan as well as the property tax. Even if the monthly expenses on a purchased a house exceed monthly rent payments of a similar property, the savings in deductions can mean more money in the pocket of the homeowner at the end of the year.

Equity

• As the homeowner pays off his loan, she builds equity. Equity is the difference between the loan balance and the value of the property. Even if property values drop, if the homeowner continues to make her house payment each month, at the end of the loan term the property owner owns the property and no longer has to pay a house payment. Depending on the loan term, it might be 15, 20, 30 or another number of years. For the renter, after paying rent for 15, 20 or 30 years, she owns nothing