Buying a home is one of the biggest financial moves you will make so it warrants a hefty discussion about whether buying a home vs renting an apartment is financially smarter for you.

Growing up, my parents use to say, don’t have kids till you buy a home. But we live in a different culture now and buying a home is not for everyone. There are a lot of pros of renting vs buying. And in the short term, even in 30 years, it may seem renting actually leaves you better off financially. But where the benefits of buying a home come in is past that 30 year mark, when you actually pay off your mortgage and own the home.

Rent vs Buy Analysis

I rented an apartment both in college and for the first 4 years of marriage. Then my husband and I bought a home, you can read the full guide on buying a home here. In this video, I use my personal experience to calculate the cost of renting all your life vs buying a home and staying in that home for 60 years. Also in this video you’ll find a pros list, which is further fleshed out in the post below.

First off, I know I was $11,000 off on the home column…but let’s face it, emergencies happen and now way are going to be in a home for 60 years (probably not even 15 years) without having to replace a roof, AC unit or something else. I probably should have ‘accidentally’ tacked on $25,000 to be safe for these various expenditures.

These numbers are contingent on the economy staying good. Calculations also don’t account for if you sell a home and buy another.

Renting vs Buying Pros and Cons

Like I mention in the video, even though buying a home will technically save you more money in the long run, it’s not for everyone. Sometimes renting all your life is worth the expense because it will free up your time and leave you with less stress.

Here’s my pros and cons list of buying a house vs renting an apartment:

PROS of renting:

• freedom
• no large maintenance payouts
• amenities (on site pool, gym, etc)

PROS of buying a home:

• have an asset – potentially make money from the resell (or from renting)
• do whatever you want with and in your property
• develop the land and improve

CONS of renting:

• limited in home style and possibilities (can’t really make it your own and may not be able to get a pet)
• at the mercy of landlords (they can increase your rent or may be unresponsive to fix issues)
• noisy neighbors (this can happen in a home too but less likely)

CONS of buying a home:

• responsibility (take care of broken appliances etc.)
• time consuming (mow the grass, painting, etc.
• big upfront cost (closing costs and down payments)

So what’s your take? What is the deciding factor for you when it comes to renting vs owning a home?