Should you rent or buy a house?
Determine what makes the most financial sense for your situation.

There are many factors to consider when deciding between renting vs. buying a home. Both options come with their fair share of financial implications so it’s important to understand the pros and cons of renting vs. buying a house prior to making a commitment.
Renting a home often provides more upfront financial flexibility, however, you will miss out on making a long-term investment. Buying a home typically allows you to build equity and reap tax benefits, but owning a home also comes with more responsibility and a greater upfront investment.
Here are common pros and cons for renting vs. buying a home.

Renting pros
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Smaller, one-time deposit
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Limited financial liability
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No property taxes
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Fewer unexpected costs
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Shorter-term commitment
Buying pros
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Initial down payment goes toward purchase price
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Money payments can build equity
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Possible tax deductions and credits
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Upgrade your home how you'd like
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Potential for increased financial well-being
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Typically more consistent monthly payments
Renting cons
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Potential rent increases
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Rent payments never stop
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No long-term financial investment opportunity
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More restrictions
Buying cons
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Increased financial responsibility
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Larger upfront investment
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Potential instability in the housing market
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Selling your home can be costly
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Less flexibility when it comes time to move
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Property taxes can be costly and fluctuate
Receive service tailored to your individual needs, and access to a broad spectrum of competitive mortgage options.

Application fee
Security deposit
First and last month's rent
Pet deposit (if applicable)
Down payment
Closing costs
Agent commission
Inspection fee
Warranty

Rent
Renter's insurance
Amenities fee
Monthly pet fee (if applicable)
Property taxes
Homeowners insurance
Mortgage
Private mortgage insurance*
HOA fees (if applicable)
Home maintenance, repairs
*Only required if down payment is less than 20% or until homeowner has more than 20% of equity in their home.
Discuss renting vs. homeownership with an Ameriprise financial advisor
If you are deciding between renting and buying a home, an Ameriprise financial advisor can help you assess your current financial situation and determine which option may align better with your financial goals.
Or, request an appointment online to speak with an advisor.
At Ameriprise, the financial advice we give each of our clients is personalized, based on your goals and no one else's.
If you know someone who could benefit from a conversation, please refer me.
Background and qualification information is available at FINRA's BrokerCheck website.