Own Vs. Rent You currently pay $10,000 per year in rent for a $100,000 house, which you are considering purchasing. You can qualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for the down payment, you would have to liquidate stock earning a 15% return. For simplicity, neglect all other concerns, like closing costs, capital gains, and taxes. Considering the information given on the annual cost of renting vs. owning, is it better to rent or own? Why?