| Aspect | Mortgage | Rent |
|---|---|---|
| Ownership | You are purchasing the property; you earn equity as you go | It’s not your place; you pay to stay there |
| Payment Purpose | Payments go towards buying the house (loan principal + interest) | Money is paid to the landlord for the use of their property |
| Duration | Long term (typically 15–30 year commitment) | Usually brief (month-by-month or annual leases) |
| Initial Costs | MUST HAVE down payment, closing costs and fees | Typically first and last month’s rent + security deposit |
| Monthly Costs | Base payment + taxes + insurance + maintenance | Rent—which may cover some utilities |
| Maintenance | Responsibility includes all repairs and maintenance of the premises | Landlord generally responsible for maintenance and repairs |
| Stability | Stabler – monthly payment is generally constant (when fixed-rate) | Rent may vary over time with lease changes |
| Equity Building | You are building equity (value) in the house | Renting is not building equity |
| Flexibility | Less flexible – if it takes time to sell a home | More versatile – capable of moving at short notice |
| Investment Potential | Can work as a store of value over time | No return on investment – simply a cost |
Mortgage: You are purchasing the home. Payments accumulate in ownership over time. Perfect for full-time or investment living.
Rent: The cost of living in someone else’s real estate. Perfect solution for short-term stays or expats.
Rent:
Live in a house for 5 years at $1,500/month = $90,000 paid — and you own nothing.
Mortgage:
Buy a home with a $1,500/month mortgage for 5 years, and part of that goes toward ownership. You build equity which can later be sold or used as collateral.