Renting vs. Owning

In many regions of the United States (including right here in the Texas Hill Country!), owning a home can be just as affordable as renting...sometimes even saving you money in the long run. And although buying may not be right for everyone, the advantages to owning a home can be eye-opening.

The Pros and Cons of Homeownership


  • Build equity – As you pay down your mortgage, you increase your wealth by building equity.
  • Tax advantages — Mortgage interest is tax deductible and can be itemized on your yearly taxes. These deductions can mean significant tax savings.
  • Fixed monthly payments — Often, landlords will increase the rent price over time. When you own a home, your mortgage payments can be fixed each month for the life of the loan.
  • Stability — A home can be regarded as a place where your family lives and grows.
  • Creativity—As the homeowner, you can decorate, renovate, or expand a house the way you want it to be, creating your dream home.
  • Establish community — Many homeowners take an interest in the well-being of their communities, working together to better their neighborhoods, schools, and communities.


  • Maintenance — Keeping a home in good condition takes time and money.
  • Value Fluctuation — Your home may not increase in value; in fact, it could decrease in value.
  • Financial Obligation — Buying a home with anything other than cash means that you will be obligated to a set monthly payment (until you sell the home).

mortgage:A contract that represents the debt owed by the borrower to the lender for the money borrowed to purchase a property.

equity:The difference between the value of a property and the amount still owed on the property.