Can Buying a Home Save You More than Renting?

Posted on: in [ Owning, Renting, Savings ]

buying v renting

In many blogs and articles today, you’ll see the arguments for both home renting and home buying. While both have a strong amount of merit, there are some circumstances for purchasing a home which could save you money in the long run. However, there are specific qualifiers to indicate whether owning a home could save or cost you money. Today we’ll examine those qualifiers and help you identity if purchasing a home is right for you!

Whether you’re renting or owning, you first need to know ALL of your current and future expenses. This can include bills such as utilities, cable, or trash. THIS CALCULATOR can help you estimate all your costs in one place, and compare how they translate from owning to renting, and vice versa.

As the calculator’s data points out, one of the most prominent aspects in the decision to rent or buy is the length of time you plan to spend in the home. In order to save the most money, and increase the value of your home’s investment, it is ideal to stay in the home for five years or more. This allows the real estate value to steadily rise, creating a buffer between your home’s value and its future cost to sell.

Another way to save money owning a home is to increase the property’s value through updates both small and large. Simple things, such as a fresh coat of paint and updated flooring, can help your home sell for a larger price point. Additionally, more immersive renovations such as the kitchen, bathroom, or basement can boost your property’s overall worth, drawing in additional buyers and potentially added dollars. By increasing your selling price point, you can create a more prominent margin for your home sale, saving you further dollars when added to your home’s appreciation.

To help you compare side-by-side, State Bank has created a T-Chart to contrast the most common differences between renting and selling:


  • The landlord typically handles property maintenance.
  • You pay a deposit, monthly rent, renters insurance AND any pet related fees when applicable.
  • The landlord typically takes care of lawn care and/or snow removal.
  • All property and/or lease changes must go through your landlord. Generally if a repair is needed, you must go through their preferred vendor.
  • You do not have equity. You pay to rent the space for a designated period of time.


  • You maintain the property.
  • You pay a (1-time) down payment if applicable, closing costs, a monthly mortgage payment, home insurance, taxes, and any HOA fees.  
  • You are responsible for any lawn care and/or snow removal.
  • You can make any changes you like to the property and are free to work with the vendors of your choice.
  • The home is yours, so you earn equity as your mortgage is paid off. The home is yours until you choose to sell it.

While owning a home for more than five years is ideal, at State Bank we realize that’s not always possible. If you’re thinking about purchasing a home, or simply want to talk real estate, stop by your nearest branch, and speak with one of our professional mortgage lenders today! 


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