Rent vs. Buy a House: Which One is Better for You?

Rent vs. Buy a House: Which One is Better for You?
Point Editorial

Should I buy a house or rent?

People have been asking themselves this question for generations, so don’t worry if you’re on the fence. You’re not alone.

Maybe you’ve been renting an apartment for a while and are curious about what home buying opportunities exist in your price range. Or perhaps you’re eager to leap to homeownership, but have doubts about the prohibitive costs of getting into real estate. 

The debate between buying a house or renting isn’t always as clear-cut as it might seem. Your decision boils down to various factors like your budget, career goals, location, and lifestyle preferences.

That’s why we’ve put together a list of all the pros and cons of buying vs. renting your house or apartment. 

Renting or owning?

You might have heard that renting your home is like throwing your money away. Or maybe you’ve heard that buying real estate is too risky for someone in your financial situation.

The truth is, there’s no clear winner. And it’s ultimately your choice to make, so consider all relevant factors before deciding what’s best for you.

To assist you in making an enlightened choice, ask yourself the following questions:

  • What is your monthly budget? Do you have savings?
  • How long do you plan to stay in your home? 
  • Do you want stability or flexibility?
  • What are your financial, career, and family goals?

The answers to these questions will help determine whether renting or buying is the better option for you. 

If you’re still unsure about which path to take, keep reading to get a detailed breakdown of the pros and cons of both renting and owning.

Renting a house: the good and the bad

In many cases, renting is the more affordable choice. When calculating costs, you should always do a detailed breakdown of up-front and monthly expenses. 

While many leases require an up-front security deposit to cover your first and last months’ rent, this deposit is usually smaller than a house’s down payment. You also save on closing costs and professional fees.

Even if your monthly mortgage payments are relatively low, you’ll often spend less every month on rent after considering all the other costs associated with home ownership like property taxes, private mortgage insurance (PMI), homeowners insurance, homeowners association (HOA) fees, and maintenance.

Renting gives you the flexibility to evaluate different lifestyles and change your plans if necessary. If you’re moving to a new city, haven’t settled into a stable career, or aren’t sure where you want to live yet, you’re probably better off renting an apartment or house until you have a better idea of your plans for the future.

It’s also much easier to uproot and move somewhere new when you’re a tenant, so renting is better than buying if you prefer a nomadic lifestyle over the stability of being a homeowner. The downside is that you can’t customize your living space as much or invest in renovations. 

Your family situation matters too. If you’re planning to get married or have kids soon, you might want to wait before buying until you can save up enough for a home that will suit your changing needs. 

On the other hand, if your family and career choices are settled and you have enough saved, renting might not be stable enough for you because you run the risk of losing your lease if your landlord sells the building or increases your rent.

Here is a summary of all the pros and cons of renting:


  • Lower up-front costs and potentially lower monthly costs
  • Landlord pays for maintenance and repairs
  • Mobility/flexibility 
  • Offers exploration of different living situations
  • Allows saving for bigger purchases


  • Rent payments don’t build equity in your home
  • Limited ability to customize or renovate your living space
  • Limited stability (landlord might sell or increase rent)

Buying a house: the good and the bad

For many, the pride in owning your home is priceless while others find the cost of purchasing real estate prohibitive. But although up-front expenses are lower for renting, buying has the potential of costing you less in the long run. 

While rent increases from year to year, your monthly mortgage payments could remain at a set amount if you get a fixed-rate mortgage. Over time, the monthly mortgage payments on your house could approach (or be lower than) what you’d pay in rent.

More importantly, you’re building equity in your home. When your property increases in value, so does your net worth. Almost all of the excitement surrounding real estate investment stems from this simple fact.

The flip side of the home equity coin is that you run the risk of your property losing value, in which case you might end up with a net loss on your investment — hence the importance of researching the housing market when shopping for a home.

Another advantage of owning your home is that you can customize or renovate your living space as you please and the money you spend helps increase your property’s value. But the ability to practice home improvement also comes with the responsibility and cost of home maintenance. If you don’t have the time or savings to manage upkeep or handle sudden repairs, you might be better off as a renter.

Owning your home also brings a sense of stability because you don’t have to worry about whether or not your landlord will sell or choose to stop renting. That sense of permanence can make a big difference to someone who’s raising a family. 

Selling your house can be more difficult and expensive if you have to move, so buying is best if you plan to settle down for a longer period.

Here is a summary of all the pros and cons of buying:


  • Mortgage payments build equity 
  • Freedom to customize and renovate your living space
  • Sense of stability or permanence 
  • Tax benefits
  • No landlord


  • Higher up-front costs and early monthly costs
  • Mortgage interest
  • Risk that home value may decrease
  • Responsibility may require surprise maintenance costs
  • Less flexibility and mobility

The bottom line

As you can see, there isn’t always a clear answer to the question of whether it’s better to buy or rent. 

Your decision depends on your financial situation, career and family objectives, and lifestyle preferences. You might also find that your situation changes over time. But with the right preparation, you can rest easy knowing you’ll make the right financial decision for you.

If you’re looking for a tool to help you take control of your personal finances and get you one step closer to homeownership, try PointCard™. 

A transparent, easy-to-use alternative payment card, PointCard allows you to spend your own money while also receiving exclusive benefits, including unlimited cash-back on all purchases and bonus cash-back on subscriptions, food delivery, rideshare services, and coffee shop purchases. 

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Join Point now.

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