Many people today value owning their own home over renting.

In my opinion, this is part of a natural

human desire for security and prestige but it contains risks.
The source of this desire is a need for stability and respect. An individual who does not own their
own home must pay rent to a landlord. This hangs over them and necessitates maintaining a job
with a steady salary and balancing rent against other living expenses. Once a person owns their own
home, they are then able to spend their money more freely and consider different employment
without the fear of becoming homeless. Moreover, having a home lends an air of respectability. Only
the wealthy are able buy a house and most homeowners take pride in the size and condition of their
home as a sign of their social standing.
Nonetheless, home ownership is a negative trend as it forces unrealistic expectations on millions.
Most people live in city apartments with rents and are not capable of buying a house. The pressure
to buy one is likely to engender feelings of inadequacy and resentment towards the upper classes.
This famously fueled the sub-prime mortgage scandals of the early 2000s in the United States when
millions borrowed more than they could afford to buy homes, then defaulted on their payments and
lost a lifetime of investment. Had these same people opted to rent, they would have saved more
money and could have invested in other forms of capital such as the stock market.
In conclusion, owning a home is innately desirable but in the end causes more harm than good due
to the pressure it places on individuals. Many people have learned this lesson and home ownership
may begin to decline in the future.
1. Security
When you’re renting a home, you don’t have much security regarding your
living situation. If your landlord decides against renewing your lease, you’ll
have to find a new place to live. When you own your home, it’s yours. You
have to make your mortgage payments, but otherwise, you don’t have to
worry about losing your home.

2. Stable Payments
If you rent a house, your landlord can raise the rent each time you renew your
lease. On the other hand, if you get a fixed-rate mortgage, your payments will
remain the same month to month. Your groceries might cost more, but your
home won’t.

3. Tax Breaks
You won’t get a tax break when renting a home. However, if you buy a house,
you will. You can deduct mortgage interest payments, energy-efficient
improvements, and more. When comparing buying housing vs. renting, this is
one of the key differences.

4. You Can Do What You Want With the Property

When you live in a rental, your landlord has control. That means you have to
get approval to do anything to the apartment or house. That’s not the case
when you own your home. You can paint the walls any color you want,
remodel, and more. This freedom allows you to live in the home of your
dreams finally.

5. Owning Is an Investment
Paying rent is essentially throwing money away. Yes, you get a place to live in
exchange for the rent payment, but you don’t get anything else in return. The
opposite is true after buying a home. Your house builds equity, so every time
you make a payment, you add to your home value. You can even tap into that
equity if you need an influx of cash.
Along with building equity, most homes increase in value. That means you
can also net a nice profit when you sell it.

6. Payments Eventually Stop

Rental payments never end. As long as you are renting a home, you will have
to pay rent. Fortunately, that’s not the case when you buy a house. Your
mortgage payments will eventually come to an end, and you will own the
house free and clear. If you want a future where you don’t have to pay for
housing, buy a home.

7. Owning Is Often Cheaper Than Renting

Landlords often charge high rent to make a profit. Along with the mortgage
cost, they charge additional money to pay for rental management and upkeep.
They also might charge extra cash so they can make more than a regular
mortgage payment. This allows them to build equity so they will own the
property sooner. All those costs add up, making owning a home often more
affordable than renting one.

8. Privacy
Landlords can’t just barge it at any time, but you still can’t expect much
privacy when you rent. They can make scheduled appointments to inspect
your property, and the landlord also has to come over if anything goes wrong.
You don’t have to invite anyone into your house when you own it, though.
Since it’s yours, you can enjoy as much privacy as you want.

9. Ownership Is a Legacy
Are you worried about taking care of your loved ones after you pass away?
Buying a home is one way you can ensure they have money when you pass.
You can give the house to them, and they can sell it or have a place to live.
You can’t do that with a rental.

10. Strong Social Ties

It’s hard to feel like part of the community when you rent a home. However,
when you own your house, you will be a part of the community and form
strong social ties.
1) No Maintenance Costs or Repair Bills
One of the benefits of renting a home is that there are no maintenance costs or
repair bills. When you rent a property, your landlord is responsible for all
maintenance, improvement, and repairs. If an appliance stops working or your
roof starts to leak, you call the landlord, who is required to fix or replace it.

Homeowners, on the other hand, are responsible for all home repair,
maintenance, and renovation costs. Depending on the nature of the task, it can
get quite pricey.

2) Access to Amenities
Another financial benefit of renting is having access to amenities that would
otherwise be an enormous expense. Luxuries such as an in-ground pool or a
fitness center come standard at many middle scale to upscale apartment
complexes with no additional charge to tenants.

If a homeowner wanted to have access to these amenities, it would likely cost

thousands of dollars for installation and maintenance. Condo owners would need
to pay monthly fees for access to them.

3) No Real Estate Taxes

One of the major benefits of renting versus owning is that renters don’t have to
pay property taxes. Real estate taxes can be a hefty burden for homeowners and
vary by county—in some areas the costs can be thousands of dollars annually.

Although property tax calculations can be complex, they are determined based
on the estimated property value of the house and the amount of land. With newly
built homes getting larger and larger, property taxes can be a significant financial
burden.

4) No Down Payment
Another area where renters have a better financial deal is the up-front cost.
Renters generally have to pay a security deposit equal to one month’s rent, a
deposit that that will theoretically be returned to them when they move out,
provided they haven’t damaged the rental property.

When purchasing a home with a mortgage, you’re required to have a sizable

down payment—typically around 20% of the property’s value. Of course, that
down payment results in having equity in the home, which only increases as the
mortgage is gradually paid off. And once you own a home free and clear, you
have a valuable investment that renters never attain.

Still, the amount needed for a down payment on a home is significantly more
than a rental security deposit. A 20% down payment on a house that has a
market value of $200,000 is $40,000. The average apartment rental on
Manhattan Island in New York City, one of the most expensive places to live in
the U.S., was $4,801 in July 2020.1 Those who don’t have money for a down
payment are better off renting.

5) More Flexibility as to Where to Live

Renters can live practically anywhere, while homeowners are restricted to areas
where they can afford to buy. Living in an expensive city such as New York might
be out of reach for most home buyers, but it might be possible for renters.
Although rents can be high in areas where home values are also high, renters
can more readily find an affordable monthly payment than home buyers

6) Few Concerns About Decreasing Property Value

Property values go up and down, and while this may affect homeowners in a big
way, it affects renters substantially less, if at all. Your home value can impact the
amount of property taxes you pay and the amount of your mortgage. In a rocky
housing market, renters may not be as adversely affected as homeowners.

7) Flexibility to Downsize
Renters have the option to downsize to a more affordable living space at the end
of their lease. Such flexibility is especially important for retirees who want a less
costly, smaller alternative that matches their budget.

It’s much more difficult to break free of an expensive house because of the fees
involved with buying and selling a home. Also, if a homeowner has invested a
significant amount of money in renovations, the selling price might not cover
these costs, leaving them unable to afford to sell and move.

8) Fixed Rent Amount

Rent amounts are fixed for the span of the lease agreement. While landlords can
raise the rent with notice, you can budget more efficiently, because you know the
amount of rent you are required to pay.
 Fixed-rate mortgages also allow for efficient budgeting, but adjustable-rate
mortgages can fluctuate, often resulting in rising mortgage payments due to
higher interest charges. Property taxes are another variable that can increase
costs for homeowners but don’t affect renters.

9) Lower Insurance Costs

While homeowners need to maintain a homeowners insurance policy, the
equivalent for renters is a renter’s insurance policy, which is much cheaper and
covers nearly everything owned, including furniture, computers, and valuables.
The average cost of renter’s insurance is $180 per year, while the average
homeowners insurance policy costs $1,211 per year, according to a 2017 study
by the Insurance Information Institute.4

10) Lower Utility Costs

Although homes can vary in size, they are typically larger than rental apartments.
As a result, they are more costly to heat and also can have higher electric bills.
Rental properties typically have a more compact and efficient floor plan, making
them more affordable to heat and power than many houses.

The Bottom Line

Owning a home can be beneficial for homeowners over the long run, due to the
amount of equity they acquire in their home. Renters have nothing tangible to
show for years of rental payments. However, for those who are looking to avoid
the hassles of homeownership, the costs of upkeep, and property taxes, renting
might be a better option. Of course, it depends on each person’s lifestyle,
financial situation, and whether they’re working or in retirement.

Pros of Renting:
 You get more flexibility and freedom. You can make a quick decision to move out,
especially if you have a month-to-month lease.
 You have no responsibility to maintain the rented area. You can tell your landlord, and
he or she will do all the repairs and maintenance for you.
 Renting may be cheaper than owning a house. Also, because you aren’t footing the bill
for repairs or maintenance, you know exactly how much you will be spending at the end of the
month.
 If you work or travel frequently, then renting a house or an apartment is the best decision
as you won’t have to burden yourself with the responsibility of maintaining the property.

Cons of Renting:
 Your landlord can increase the rent at any time.
 You cannot build equity if you’re renting a property. It will be your home, but it won’t be
your asset.
 There are no tax benefits to renting a property.
 You cannot make any changes to your house or your apartment without your landlord’s
approval.
 Many houses available for rent have a “No Pets” policy. So if you’re an animal lover,
finding a place to rent that allows pets can be hectic.
 Your landlord can evict you at any time. He/ She can put the property up for sale to
make a profit if real estate values increase.
 You are bound by the rules and obligations in your lease agreemen

Pros and Cons of Buying a Home

Just like there are some benefits and disadvantages to renting a home, there
are also several pros and cons to buying a home. The following list can help in
making a final decision.

Pros of Buying a Home:

 Owning a house can give you a feeling of stability and settlement. There is also the pride
of owning a property.
 There is complete freedom of redecorating and renovating the property as you are the
owner.
 Buying a house can serve as an investment. You can buy it and then rent it out to earn
monthly profits.
 Tax benefits. You can deduct your mortgage interest payment. Plus, you build equity
while paying off your loan.
 You have complete freedom to live however you want. You can have pets, you can
change appliances, you can renovate and much more without anyone stopping you.
 You have your own privacy.

Cons of Buying a Home:

 Owning a house requires more responsibility. You have to pay for your own
maintenance, or make time to take care of the household projects yourself.
 A home is not a liquid asset. This means that if you ever plan on selling your property, it
may not be as quick of a process as you expect.
 Although you don’t have to pay rent every month, property taxes can go up.
 You can lose the value of your property over time instead of gaining it. You can end up
selling a house you bought for $350,000 for the same exact price 20 years later. When
considering inflation, this means you lost money on your investment.
 If you are a restless soul, home ownership might not be for you as it provides less
mobility.
 Buying a house can be much more expensive than renting one.
 Your monthly expenses may vary depending on what you need for the house. You might
not spend much one month, but may end up spending $20,000 on roofing the next. 
So which is better, renting or
buying?

Although money plays the most

important role in deciding whether to buy or rent a home, it is not just about
the money. There are many other factors that play a part in deciding which to
choose. How long you plan to live in a certain location, your plans for the
future, your career goals, etc., all play a role in your decision.
Just make sure you’re willing to commit to long-term homeownership before
making any decisions. If you think it’s time to settle down and start a family or
build a career in a specific company or location, then you should highly
consider buying a house.

If you still think that there is much to see in this world or if you aren’t sure
about your career choices, then renting is most likely the best option for you,
as it provides you with greater flexibility.