Pro's and Con's

ATP

Jan 3, 2015
344
31
28
U.S.A.
Hi guys. I wanted to make a fun little list to look at. Do you have a list? - ATP

Mortgage Payments vs. Rent Money

Pro’s
Mortgage Payments – Living in a nice neighborhood

Con’s
Mortgage Payments – You pay double in interest
Mortgage Payments – Roofing, plumbing, electric, pavement, kitchen can go bad
Mortgage Payments – Stuck with bad neighbors
Mortgage Payments – Must cut lawn/shovel snow

Pro’s
Rent Money – Maintenance fixes everything
Rent Money – Do not have to cut lawn or shovel a lot of snow

Con’s
Rent Money – Rent also goes up the longer you live there
Rent Money – Living in a bad neighborhood
Rent Money - Stuck with bad neighbors
 
In addition to what was already posted...

Renting a home:
Unable to do what you want with the land/home.
Payments continue endlessly.
Neighbors come and go.
Rent can/will increase.
Can be evicted.

Buying a home:
Do as you please with the land/home.
Payments end in 15 or 30 years (unless you take out a second mortgage).
Neighbors are usually around a lot longer.
Property value can fluctuate.
 
Jan 19, 2015
45
56
18
63
Texas
In addition to what was already posted...

Renting a home:
Unable to do what you want with the land/home.
Payments continue endlessly.
Neighbors come and go.
Rent can/will increase.
Can be evicted.

Buying a home:
Do as you please with the land/home.
Payments end in 15 or 30 years (unless you take out a second mortgage).
Neighbors are usually around a lot longer.
Property value can fluctuate.
I like the one about the payments ending after a period of time. Then you can do something else with that money.
 
Jul 22, 2010
3,147
1,224
113
73
Australia
Another pro would be that mortgage payments tend to take less of a percentage of your income over time.
A huge con would be if the property next door gets sold as a rental property.
 

ATP

Jan 3, 2015
344
31
28
U.S.A.
This one got me thinkin'..

Mortgage Payments – Roofing, plumbing, electric, pavement, kitchen can go bad $$$
Rent Money – Maintenance fixes everything
 
Jul 22, 2010
3,147
1,224
113
73
Australia
You don't get to choose the new kitchen or bathroom or if there is insulation under the roof.
If the hot water service goes south, you could have a few cold showers before the land lord gets around to replacing it too.
 

ATP

Jan 3, 2015
344
31
28
U.S.A.
You don't get to choose the new kitchen or bathroom or if there is insulation under the roof.
If the hot water service goes south, you could have a few cold showers before the land lord gets around to replacing it too.
Well, it's either wait a few days at apartment or get a hotel..
or pay thousands of dollars on your home that you happily own. (y)
 
Sep 3, 2009
12,157
4,730
113
Florida
In addition to what was already posted...

Renting a home:
Unable to do what you want with the land/home.
Payments continue endlessly.
Neighbors come and go.
Rent can/will increase.
Can be evicted.

Buying a home:
Do as you please with the land/home.
Payments end in 15 or 30 years (unless you take out a second mortgage).
Neighbors are usually around a lot longer.
Property value can fluctuate.
And when you buy a home the interest and property insurance is tax deductible.
 
Feb 5, 2013
2,319
1,841
113
37
Wharton NJ
Buying a home - Pros:
No need to worry about noise or staying up late or having friends visiting at midnight
No need to worry about noise from neighbors
Enjoying barbecue in summer
Planting garden and doing things outdoor as per our taste
Good physical exercise in snow blowing and lawn mowing.
 
Feb 6, 2015
350
106
43
Ohio USA
www.fether.net
As long as you have to pay property tax (or lose your home), you're renting. All it means to pay off a mortgage is that the rent is greatly reduced... that is, until the government decides to raise it.

Another con of "owning" is that you can't easily move due to sudden job change or other unforeseen circumstances.

The price of rent includes all the costs the landlord has plus a profit, so unless the house is paid off, the landlord has to charge what you'd be paying for a mortgage, plus repairs, plus taxes, plus profit.