Blog - AFS Financial Group

Buying, Renting, & Refinancing

Written by AFS Financial Group, LLC | Mar 7, 2022 9:08:00 PM

 Renting:  Pros

  • Flexibility: You can make a quick decision to move out or relocate for work, especially if your lease is month-to-month.
  • Less responsibility: The landlord is generally financially responsible for major repairs and maintenance.
  • Low upfront costs: Aside from the security deposit, there are typically no other fees.
  • Set monthly costs: You know what your rent will be each month, so you can budget accordingly.
  • No additional taxes or fees: No surprise costs, other than what is stated in your lease, to worry about.

Renting:  Cons

  • Rent may increase: Your landlord may increase the rent, which is out of your control.
  • No equity: You are not building equity while you rent.
  • No tax benefits for renting a property.
  • No customization: You cannot renovate your home to your liking.
  • Pet policies: Subject to pet policies and fees.
  • Lack of stability: Your landlord can put the property up for sale at any time, forcing you to move once your lease is up.

Buying: Pros

  • Stability: Owning a house provides security.
  • Freedom: Ability to renovate and make any desired upgrades.
  • Building equity: Buying a house can serve as an investment. You may even choose to rent the property for monthly income.
  • Federal tax benefits: If you itemize, mortgage interest is tax-deductible, along with property taxes and certain closing costs (subject to limits).
  • Stable monthly payments: A fixed-rate mortgage means you'll pay the same monthly amount for principal and interest until the mortgage is paid off.

Buying: Cons

  • More responsibility: House projects and maintenance take time and are costly.
  • High upfront costs: Down payment, closing costs, fees, etc.
  • Less mobility: If and when you sell the property, the process takes time.
  • Property taxes: Will increase over time.
  • Valuation: There are no guarantees that your property will appreciate.
  • Maintenance costs: There are always unexpected maintenance costs that will stress your savings.
Click here to view & download the complete Renting vs. Buying handout.


Questions and/or interested in how this applies to your financial life?

Email us here: info@afsfinancialgroup.com.