ICFE eNEWS #17-34 - November 1st 2017
7 Reasons To Buy Vs. 7 Reasons To Rent
By Jim Garnett, a/k/a Ask Mr.G, a member of the ICFE's Board of Educational Advisors
Is it better to buy a home or rent? The "right" answer for
you depends entirely on your individual circumstances. That
being said, here are 7 reasons to buy vs. 7 reasons to rent that
will help you think through the situation.
7 Reasons You
1. The home's "equity" (the difference between the
value of the house and what you owe on it) often increases
providing you with an appreciating asset and a down payment for
your next home purchase.
2. The monthly payments can often be
about the same for owning or renting.
3. There is a greater
sense of stability, security, and community in owning your own
4. Homeowners can change the décor and landscaping to
suit their own tastes.
5. Homeowners can do their own
maintenance or hire it done without having to wait for someone
else to "fix it when they have a chance."
interest and property taxes are usually tax deductible.
Mortgage payments do not tend to increase like rental payments
often do. Mortgage payments will increase due to the terms of a
balloon mortgage, a refinance, or an increase in the escrow
7 Reasons You Should Rent
1. The initial
rental deposit is much less than a down payment for a home and
is usually refunded when you leave to apply on your next
2. It is much less difficult to move and much less
3. The cost of furnishing an apartment is much less
than a house.
4. There is little or no cost for maintenance,
repairs, or upkeep.
5. There is no chance of foreclosure in
which you can lose all of your investment.
insurance and monthly utility costs are normally much cheaper.
7. There are no closing costs or realtor fees in renting an
© Jim Garnett, The Debt Doctor
AskMrG Consulting, LLC
2216 SW 35th Street
Ankeny, IA 50023
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Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by
the late Loren Dunton (creator of the Certified Financial Planner (CFP)
designation). The ICFE is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely.
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.
The ICFE is a partner with the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves and Military Saves, both offshoots of America Saves.
The ICFE is also an on-line help for consumers who spend too much. ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.
The ICFE helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G, a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.