The Expenses of Owning a Home verses Renting | The Savings Wife

Friday, December 13, 2013

The Expenses of Owning a Home verses Renting


There is quite a bit of debate out there concerning whether to rent or own your own home. Which is better in your situation? Check out this List of expenses to help you determine which is better for you.    



Lets get down to expenses associated with each so you can weight each option carefully.  The amounts for each can very depending on the area you live in.

Rent:
Money going out:
Cost of Rent: Unless you are in a Rent to own situation you get no equity with payment.
Owner can change terms of your rental agreement unless under contract.
Cost of utilities: possibly some will be included, electric, water, sewer, heating, telephone, internet
Renters Insurance
Occupancy Rules concerning number of people in house for apartment complexes.
Yard and Land Maintenance unless covered by Owner.
Owning pets can be an issue.

Owning a home:

Mortgage: You can build equity in your home with each payment.
Bank owns your home until any Loans are payed off.
Without a substantial down payment you pay PMI fee's or have a second mortgage.
Association fees
Taxes
Cost of Utilities- electric, water, sewer, heating, telephone, internet, trash removal, gas or oil
All repairs no matter how major or minor unless you are under a  Choice Home Warranty.
Homeowners Insurance or Condo insurance
Yard and Land Maintenance


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