What is the difference between renting and owning a home?

Renting and owning a home are two different ways of obtaining a place to live, and each option has its own advantages and disadvantages.

Renting a home involves paying a monthly rent to a landlord or property manager in exchange for the right to live in the property. Renting typically requires less upfront cash than buying a home, and renters do not have to worry about property taxes, maintenance costs, or other ownership expenses. Additionally, renters generally have more flexibility to move when their lease is up.

Owning a home involves purchasing a property and taking on the responsibility of maintaining it. Homeowners typically have more control over their living space, can make modifications and renovations as desired, and may build equity in the property over time. However, owning a home also involves significant upfront costs such as a down payment, closing costs, and ongoing expenses like property taxes, insurance, and maintenance costs. Homeowners also have less flexibility to move and may be subject to fluctuations in the real estate market.