Military Relocation – Renting or Buying in a Military Relocation?
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Renting or Buying in a Military Relocation?

Takeaways

  • Once you decide to live off base the next question is to rent, or buy.
  • Renting lets you walk away with no strings when transferred.
  • Buying offers tax deductions and the chance to build equity.

Did you know?

  • VA loans make buying an attractive option.
Compare buying to renting. When military relocation takes you to a new city where you have decided to live off base, you must decide whether to rent an apartment/house or buy a home. There are benefits and drawbacks associated with both options.

Renting offers flexibility, but there may be drawbacks:

  • If you rent, it is easier to pick up and move.
  • There are no home maintenance expenses or responsibilities required. Just call the landlord.
  • Like living with on-base rules and restrictions, there are rental contract rules and restrictions.
  • Although leases are for a fixed period, rent increases are almost guaranteed at the end of the fixed period.
  • Keep in mind that when you rent there are no tax advantages and no chance to build equity.

What about buying?

  • You may be able to buy a bigger home than you can rent for the same monthly payment.
  • You can decorate and remodel whenever and however you like with no one looking over your shoulder.
  • There may be rules imposed by local ordinances and neighborhood covenants, but these are generally less restrictive than base housing rules or rental requirements.
  • If VA financing is available and you qualify, you may be eligible for a low down payment and other benefits.

Don’t forget the biggest financial advantages to buying a home – tax deductions (mortgage interest and property taxes) and the opportunity to build equity.

Learn More About Military Relocation and Real Estate

To learn more, explore the advice on Military Relocation in this section of our site and in our general advice on Buying a Home. You can also talk with a GMAC Real Estate Agent near your new Duty Station for professional and experienced advice about homes in nearby communities.