By Danielle Keech for MilitaryByOwner

The same questions surface every couple of years when it comes time to PCS. One of the biggest ones is whether or not we should buy or rent a house at our next duty station, but that question can also be one of the hardest to tackle. 

The answer can differ based on the location. But how do you make that decision? How can you definitively say that one choice is better than the other? With a pros and cons list, of course! 

So let’s talk about what makes home buying a great option for military families and what might point you to renting. 

The Pros 

Ability to customize. Unlike renting, when you own a home you get to make the call on just about everything. If you want six furry pets, an aquarium, and a jaw-dropping water feature in the house? Go for it—you do you! Feel the joy in the freedom to paint, make upgrades, and renovate whatever you want to tailor the space to your family’s needs. 

Investing in your future. One of the greatest things about homeownership vs. renting is the ability to build equity. Real estate is an investment. And if you watch the market, and know when to buy, when to sell, and which upgrades will increase the value of your home, you can walk away with more money than you put into it. Say hello to college funds, early retirement, rental properties, or the vacation of a lifetime. Or, say goodbye to debt!

Additional income. If you buy and then decide to list the property for rent instead of for sale, then you’ve already got your foot in the door to rental property investments. And if your home is near a military installation, you shouldn’t have too much trouble finding a tenant to fill the space. As far as tenants are concerned, military families make some of the best low-risk renters!

It’s multipurpose. Who’s to say that you won’t have orders in hand to return someday? Buying a home now might save you the trouble of another house hunt down the road. 

Tax break. Unlike renters, homeowners can save a little money and deduct some of their expenses from their taxes even when it’s time to sell—say hello to capital gain tax exclusions! 

Related: The Effect of Capital Gain Tax Exclusions on Military Home Sellers

The Cons

It’s long-term. Buying a home is a huge commitment. If you’re moving to a new duty station for a year or less, then it might not be the best decision to buy. You could be better off with the flexibility and financial freedom of renting.  

You’re responsible for everything, big and small. One of the best perks of renting is that the burden of responsibility doesn’t fall on the tenant so much as the landlord. For military spouses with an active duty spouse who is gone frequently, the comfort of having someone to call when things go wrong is enough to outweigh the benefits of homeownership. Maintaining a property is no small task.

More money upfront. When buying a home, it costs more to get your foot in the door. Though mortgage payments can wind up being less than what you’d pay in rent for an equivalent home, rentals only require a security deposit, pet deposit, and a couple month’s rent upfront—often less money than a down payment.

Related: Preparing Your Finances for Buying a House

More responsibility when it’s time to PCS. Rentals allow you the freedom to wipe your hands clean when it’s time to go, while homeowners are tasked with getting the house ready to sell or rent. This, in and of itself, is a huge project. While you’re completing tasks around the property, you’re looking for tenants or buyers. On top of that, you’re getting ready to PCS. So a lot of your energy is spent researching your next duty station, learning your new budget, getting the kids unenrolled and re-enrolled in school, and deciding whether you should rent or buy at your next duty station. It’s a lot to make happen in a short amount of time. 

It can limit other investments. If your money is tied up in a house, then you might not be able to pour as much into or create other investments. After evaluating your finances, you might decide that it’s best to funnel money toward paying off your debts, retirement, or save for a down payment when you decide that it is the right time to buy. 

It’s not easy deciding whether to buy or rent. Let this pros and cons list start the discussion and help you figure out what’s best for you right now. And when you’ve made your decision, take a look at MilitaryByOwner to find homes for sale and houses for rent near your next duty station. Good luck and happy house hunting!