Finance Renting Versus Home Ownership: Which Is Best For You?

Those looking for a place to live, must proactively, clearly, and consistently, seek to identify and understand, their options, and choose the one, for them! In most cases, this often comes down, to a choice between purchasing a house of one’s own, as opposed to, deciding to rent. There is no such thing as a right or wrong answer, because the decision must be a personal one, which considers several factors, including finance, personal comfort zone, possible pride – of – ownership, strategies, needs, and anticipated length of time, one expects to live somewhere. This article will briefly discuss some of these relevant factors, and how someone might determine, for himself, the best way to proceed.


1. Renting: One of the major advantages of renting, as opposed to buying, is financial, at least in the immediate, short – term! While one must put significant funds down, when he buys a house, renting, generally, requires, in the vast majority of instances, putting down only, one month’s rent (first month), as well as a similar amount of security payment. There is, also, far less responsibility, because someone else owns, and is responsible, for major issues and expenses. Since there is no major down – payment required, a renter preserves his capital. Some find renting makes more sense for them, because they take that capital, and invest it, for a larger rate of return! It is, also, generally, far easier and simpler, to predict, monthly costs and expenses! However, on the other hand, rent payments do nothing to build one’s assets, etc!2. Home Ownership: Generally, one of the limitations of renting, is the inability to customize one’s housing experience and/ or lodging. You are not able to make any structural changes, and anything you put into the property, only benefits you, in an emotional manner, but, without any financial gain! While there are several financial considerations and/ or advantages, owning a home – of – your – own, provides the intangible, pride – in – ownership! When one rents, his payments go entirely to his landlord, and he accumulates no increase in value! On the other hand, homeowners gain growth of asset value, over time, in the vast majority of instances. Since, for most people, their house is their single, biggest financial asset, the costs associated with owning, go towards some degree of asset growth, and Return on Investment. In addition, when it’s your house, you can modify, make changes and improvements, as you believe, best serves your needs and preferences.


There’s no simple answer to which of these options is best, for every individual and/ or situation! You must determine, which is best for you!