Renting vs Owning a Home

Renting vs. Owning a Home

Written by Nathan Woolard

Many people see owning their own home as part of the American Dream, but the decision to buy should not be made in haste.  In some situations, renting might be the smarter option.  You can’t simply compare a monthly mortgage payment to a monthly rent payment.  There are many non-financial aspects to consider: 

• Which is the better choice financially?

  • Home ownership has certain expenses that you won’t incur when renting, such as down payment, closing costs, property taxes, maintenance, and renovations.

  • Renters insurance is less expensive than homeowners insurance. 

  • Homeowners build equity and may derive certain tax benefits that renters don’t.

  • While a landlord can raise your monthly rent payment, a fixed-rate mortgage payment will always remain the same.

• How long do you plan to live in the same place?

  • If you want mobility and freedom to move around, if your career might require relocation, or if you think your housing needs may change in the future, then renting might be the preferable option.

  • If you’re ready to put down roots in your community, then looking into homeownership may be more ideal for you.

  • One thing to keep in mind if you rent is that the length of your stay may not ultimately be your choice.  The landlord could choose to stop renting or sell the property and leave you searching for new accommodations.

• How much freedom and responsibility do you want in customizing and maintaining your home?

  • When you own a home, you’re free to make it your own!  Decisions about paint vs. paneling or hardwood vs. carpet are in your hands.  If you want to plant flowers or a vegetable garden, you don’t need someone else’s permission.  When you rent, the landlord may not allow you to personalize your space as you like. 

  • Upkeep and repairs, pest control, lawn care, and snow removal are all time-consuming hassles, but if you are renting your home, then those chores all fall to your landlord.  On the other hand, if you have the time and energy and would rather have control of these tasks yourself, then you may be more suited for ownership.

The choice between renting or buying your home affects not only your financial wellbeing, but your lifestyle itself.  Your personal preferences should factor into your decision.  Do you want flexibility or stability?  What goals do you have for your career?  Do you just want a roof over your head or are you ready for a place to call your own?  In a nutshell, money isn’t all that determines what’s best for you; it’s also about your comfort and your vision for the future.  Whatever you desire, just remember that owning a home isn’t always better than renting, and renting is not always the simplest solution.