July 15, 2025

Buying vs. Renting: A Q&A Guide

Deciding whether to become a home buyer or remain a tenant is a significant financial and personal decision. It affects not only your bank account, but also your lifestyle, mobility, and sense of security. Mortgage Loan Originator Eric Richter with Gateway Mortgage answered three common questions aspiring home buyers ask to navigate the possibilities.

1.   WHAT ARE THE ADVANTAGES OF BUYING A HOME VS. RENTING?

LONG TERM WEALTH

The ones that really hit me when I’m chatting with folks about renting versus buying. It’s just long-term wealth, you know, paying yourself instead of paying somebody else, and just that cost savings down the line. You’ve got long term equity because you’re paying your mortgage, not somebody else’s. When you do the quick math, if rent is $3,000 a month, that’s $36,000 a year that you’re paying somebody else. 

A home is an appreciating asset. Just being in the home and living there, it’s increasing in value. In five years, you’re essentially amassing wealth. With every mortgage payment, you gain a larger stake in your property, which (will likely) appreciate over time. 

Home equity can be a powerful asset and a source of financial stability. When I chat with first-time home buyers, I describe it as if you’re paying a bill, but it’s more like a savings account. You just don’t get to see the actual dollars building up, because it’s building up in equity versus, dollars on a savings account.

SECURITY AND PREDICTABILITY

“Homeowners also have the security of staying put and are not at the mercy of a landlord who could sell the property out from under them. Tenants could face rent increases, also, whereas a homeowner generally enjoys fixed mortgage payments.”

TAX BENEFITS

“Probably your biggest deduction or write-off is the interest that you pay on your mortgage loan. For most folks, that’s their largest expense, which creates their largest deduction. The interest on their mortgage loan, especially the first five years, is significant when you’re looking at standard deductions versus itemizing.

And then property taxes are also something that a homeowner is able to write off. So, when you’re looking at buying versus renting, again, someone else is getting that deduction and you’re contributing to the landlord’s financial well-being.”

PERSONALIZATION

SIDE NOTE: Home buyers in Looking Glass in Parker and elsewhere can personalize their homes, whereas tenants usually need permission from the landlord to make significant changes aesthetically and certainly structurally to the property.

1.   WHAT ARE THE SCARIEST ASPECTS OF BUYING A HOME?

DOWN PAYMENT ANXIETY

“Renting is easier. It’s the path of least resistance. You go into a leasing agency or an apartment complex, fill out an application, give them first month’s rent and a security deposit, and they hand you the keys, right? 

Buying a house is substantially more difficult because there’s an approval process, there’s the financing piece of it, there’s the debt piece of it, the income piece of it. So, a lot more hoops to jump through on the down payment part.”

DOWN PAYMENT ASSISTANCE

“Lots of people consider the down payment their biggest hold up. However, in the environment that we’re in now, there are a lot of programs where you can get into a home for $1,000/ So we debunk that myth quite often, because of the down payment assistance programs that will help (an aspiring home buyer).” 

MAINTENANCE EXPENSES

“Just like any investment, yeah, there’s upside, and then there’s risk to it. There are maintenance expenses that are going to pop up, less so with a new construction purchase.

But even with a new build, there will be HVAC filters to change, lawn mowing, gutter cleaning — you can’t get around maintenance.

So that’s an advantage to renting — you don’t have to worry about repairs. You make a phone call and somebody comes to fix whatever needs attention.”

3. WHAT COUNSEL TO YOU GIVE THE UNDECIDED?

RUN THROUGH

“I tell people to give yourself three months and pretend like you’re making that higher mortgage payment — pay your rent and put the difference in a savings account. See what that feels like. What are you giving up? What are you used to having that you might not be able to have for a time. And how does that feel? If it doesn’t feel that much different, or if you feel like you can make those pivots, then it might be time to buy.”

BUDGET SENSE

“It always starts with the numbers. I always have the conversation around budget. You’re the one who’s going to pay your mortgage, and it’s got to make sense for your budget, but it’s also going to feel like a stretch. It’s going to be a little bit uncomfortable. That is normal. Your payment is probably going to be a little bit higher than rent was, but what you’re getting long term is thousands, maybe tens of thousands of dollars accruing.”

INVEST IN YOURSELF

“If your strategy is to wait and save more money, do the math. Say your rent is $3000 a month. You’re essentially spending $36,000 to save maybe $10,000. So, in that case the math just doesn’t make sense. It’s about just getting people to understand the math is real. You’re paying somebody else this money that you’re going to have to pay anyway. You might as well be investing it in yourself.”

BUY A NEW BUILD IN LOOKING GLASS 

Buying new in Looking Glass means less maintenance, practically no repairs, and plenty of personalization options. The Looking Glass neighborhoods in Parker give homeowners easy access to paths and parks, community connections and nearby recreation, entertainment and shopping. Stop by the beautiful model homes from D.R. Horton, Taylor Morrison, Dream Finders and later this year, Richmond American Homes, from the $600s, and find the perfect fit for you and your family.