It’s the oldest debate in real estate: is it better to buy or keep renting? Renting has its place for a short season — but if you’re planning to stay put for a few years, the math in Texas isn’t even close. Here’s why.
1. Every Payment Builds YOUR Equity — Not Your Landlord’s
When you rent, your monthly payment is gone forever. The average renter paying $2,400 a month hands over $144,000 in five years — and owns nothing at the end of it. When you own, a portion of every mortgage payment goes straight to principal, building equity that’s yours. Add in home price appreciation — and Frisco and the DFW area have a long track record of it — and your home quietly becomes one of the biggest wealth-builders most families ever have.
2. Your Payment Stays Put. Rent Doesn’t.
With a fixed-rate mortgage, your principal and interest payment is locked in for 30 years. Rent? It goes up at renewal, year after year, and there’s nothing you can do about it. Homeowners trade rising rent for a payment they control.
3. Real Tax Benefits — Even in Texas
Texas famously has no state income tax, but homeowners still get meaningful tax advantages:
- Mortgage interest deduction — the interest on your home loan is generally tax-deductible on your federal return.
- Property tax deduction — a portion of your Texas property taxes may be deductible too (subject to federal limits).
- Homestead exemption — file it on your primary residence and it reduces your taxable value (including a $140,000 exemption from school district taxes), plus it caps how fast your appraised value can rise each year.
- Capital gains exclusion — when you sell your primary home down the road, you can generally exclude up to $250,000 of gain ($500,000 for married couples) from federal taxes.
Renters get none of this. Every one of those breaks goes to the person who owns the home — your landlord, if you’re renting.
4. It’s YOUR Home
Paint the walls. Remodel the kitchen. Plant the tree. No landlord approvals, no lease restrictions, no surprise “we’re selling the property” letters forcing you to move. Ownership means stability for your family and roots in your community.
The Bottom Line
Renting buys you a place to live for a month. Buying buys you a place to live and an asset that grows. Yes, rates are higher right now — but between seller-paid rate buydowns and year-end deals, there are smart ways in. We just wrote about both here: https://thetommayteam.com/rates-just-hit-a-3-year-high-heres-how-our-buyers-are-paying-less-anyway/ and here: https://thetommayteam.com/why-now-is-the-best-time-to-buy-a-home-especially-a-rental-before-the-year-ends/
Ready to run YOUR numbers? Call the Tom May Real Estate Team at 214-223-4600. We’ll compare what you’re paying in rent against what owning would look like — no pressure, just the math.
The Tom May Real Estate Team | Serving Frisco & the Greater DFW Area
Note: This article is for informational purposes only and is not tax, legal, or financial advice. Deductions and exemptions vary by situation — please consult your CPA or tax advisor.