When you ask someone about owning a home they will often say something  about it being part of the American dream. There are many advantages to home ownership and  there is also a level of responsibility that people don’t always consider. You don’t just live in a home, you should expect to do routine maintenance or, even better, plan on updating/upgrading from time to time to help maintain your home’s value.

Below is a comparison chart with based on a chart by Ginnie Mae



Builds Equity over time Takes time to sell, don’t consider this a liquid asset
Sense of community, stability, and security Responsible for property taxes, hazard insurance and maybe HOA fees
Free to make the home your own,
change decor and landscaping
Possibility of loss of equity if you are forced to move in a down market
Not dependant on Landlord to maintain, fix or repair You are responsible for routine maintenance.
Eligible for various tax deductions and tax credits
Stable and predictable monthly payments


Little or no responsibility for maintenance No tax benefits
Easier to move quickly Not building any  equity of your own. Your helping to build  your landlord’s equity
No control over rent increases
Little or no control over property management, and how or when things are maintained or repaired

Additional Expense of Homeownership

Your landlord takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home,
you accept responsibility for paying for these expenses (listed below). These expenses are in addition to your monthly morgage payment and
the depend on how much you do yourself versus hiring a professional to take care of them.

    Some Expenses : 

  • Property Taxes and Special Assessments
  • Home/Hazard Insurance
  • Utilities
  • Maintenance (routine or regular like painting or repairing the roof, mowing, watering, tree trimming)

Something else to consider is that all mechanical items in a home eventually wear out and need to be replaced. Examples: Furnace, hot water heater, toilets, faucets, and Kitchen appliances