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Owning |
Renting |
| Home Improvements |
When you make home improvements, you are increasing the value of your home. |
When you make home improvements, you are increasing the value of someone else's property. |
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| Term of Loan |
Whether you have a 15 year or 30 year loan, there will eventually be an end to your monthly payments. |
There will never be an end to your rent payments. |
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| Equity |
On average your home's value will increase 3% a year. Recent years on Maui have proven to be incredibly higher than 3%, which shows that Maui is a great place for investment properties. |
When renting, there is no equity to be gained. |
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| Taxes |
Interest on home loans are tax deductible. |
There are no tax deductions when renting. |
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| Home Loan |
There are many different loan programs available that allow great flexibility and that address your current financial situation. When talking to your lender, you are sure to find a loan that best fits the needs of you and your family. |
When renting, there is no flexibility in your monthly rent payment. |
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| Cost of Living Increase |
With a home loan, you pay the same amount per month for the entire term of your home loan. As the cost of living increases, the only thing about your home that increases is your equity. |
When your lease is up your landlord has the right to increase your rent or ask you to move. |
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| Capital Gains |
If you decide to sell after living in your home at least two years, all the equity gained is yours to keep...usually tax free! |
When renting, you have gained no equity. You have made no profit. |
