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Trying to decide if you should rent a house or buy your own home? Learn about all of the benefits homeownership has to offer over renting, and why you should buy a home now to maximize your return on investment.
| Category | Renting | Buying |
| Monthly Costs | Fixed rent (may increase annually) | Mortgage, property taxes, insurance, maintenance |
| Equity | No equity; money goes to landlord | Builds equity over time with each mortgage payment |
| Flexibility | Easy to relocate | Harder to move; selling takes time and costs |
| Customization | Limited; must follow landlord’s rules | Full control over renovations and design |
| Tax Benefits | None | Possible deductions and capital gains exemptions (varies by region) |
| Stability | Less stable; subject to lease terms and rent increases | More stable; long-term residence and fixed mortgage (if rate is locked) |
| Investment Potential | No return on rent | Potential appreciation and resale profit |
Before deciding whether to rent or make the leap to homeownership, consider these factors.
Buying a home can build equity over time, especially if property values rise. It’s a form of forced savings—every mortgage payment increases your ownership stake.
Renting doesn’t offer this benefit; however, it frees up cash for other investments, like stocks or retirement savings.
Renting is ideal for people who value flexibility. If you’re unsure about your job, city, or life plans, renting allows you to move with minimal hassle. Selling a home, on the other hand, can take months and comes with costs like realtor commissions and staging.
Homeownership offers long-term stability. You’re not subject to rent increases or sudden eviction notices. You can renovate, decorate, and truly make the space your own. If you’re ready to settle down, buying may be the better fit.
Homeowners may benefit from tax deductions on mortgage interest, property taxes, and mortgage insurance premiums. Conversely, renters don’t typically get tax breaks.
Is it better to rent or buy in 2025?
It depends on your financial situation, lifestyle goals, and how long you plan to stay. That said, buying means the chance to build equity, take advantage of tax deductions, and benefits from more control and stability.
What are the upfront costs of buying vs. renting?
Buying requires a down payment, closing costs, and fees. Renting typically involves a security deposit and first/last month’s rent.
Can I build equity by renting?
No, rent payments go to the landlord. Buying allows you to build equity over time as you pay down your mortgage and your home appreciates.
What are the tax benefits of buying a home?
Homeowners may deduct mortgage interest and property taxes. They may also qualify for capital gains exclusions when selling a primary residence.
What credit score do I need to buy a home?
Most lenders prefer a score of 620 or higher. Better scores can qualify you for lower interest rates.
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington serving the entire state, as well as Oregon, Idaho, Colorado, and California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages, or visit our website to get an instant rate quote.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.