Is Buying A House Better Than Renting One?

Some people are currently considering the advantages and disadvantages of renting compared to buying their own house.

In many parts of the country home rental costs are nearly 50% less than it would cost to get a home with a traditional thirty year mortgage.

Many people across this country are wrestling with their home’s mortgage payments right now and the home value rate is not getting any better at the moment.

Pros & Cons of Renting A House

The advantages of renting a home are often pretty clear. If you are a renter then you don’t usually have to worry about your house’s maintenance other than a few standard house repairs.

Most rental houses have a management service that handles large home improvements and maintenance issues. Renters do not get to benefit from growing home values but they also don’t have to worry about selling a house that is underwater. People who rent their home don’t often have to pay property taxes, though some states do have a rental tax.

Renters, however, usually have very little control over their own house’s upgrade projects. While many cities have rental rules, sometimes landlords can stop renting to residents for no good reason. When you rent your house then you have to remember that you are not building any sort of value in your house.

Pros & Cons of Buying A House

Buying a home usually is usually a more expensive decision in the beginning. The nerve-wracking process of applying for a home loan can be challenging for many people these days.

However, home owners usually have more freedom to modify their homes than renters, but home owners obviously have to be able to afford their home upgrades. Of course, some home remodeling projects can give you a large tax benefit.

The Decision Is Yours

The decision to own or rent a house is mostly a personal one. Both renting and home ownership come with obvious pitfalls and benefits.

Owning a home will give you power of ownership and will allow you to build up equity and gain some possible tax breaks.

While renting may leave more immediate cash in your pocket and enable you to avoid a long-term commitment as well as the worry and expense of property maintenance and upkeep.

So what do you think…is buying a house better than renting one? Be sure to share your opinions in the comments blow!

39 thoughts on “Is Buying A House Better Than Renting One?

  1. If you are starting from a scratch, I think it would be better if you rent a home first. Deciding on this matter also involves investment of a large amount of money. If you think you are already financially stable, then that’s when you plan and proceed with buying a house. As for me who had experienced both, I’ll definitely favor having to own a place without worries of constant and various monthly bills and that will last in life.

  2. I would prefer buying a house. It would be better to have a personal space and not worrying about monthly rent. Well of course buying a house never comes easy if you don’t have a budget, saving the money you’ve earned will definitely help you buy your own house.

  3. I’m a freedom lover and my think that buying a house early in life gives you limitation in what you can accomplish later on, you are usually stuck with payments for a really long period of time. IF you’re already rich…then no doubt it can be a profitable investment….but for an average with an average salary….i wouldn’t recommand it !
    Great blog by the way
    Jean

  4. I agree that deciding between renting and buying a house is a personal choice. There are many deciding factors to this. Renting may be easier to budget for new families moving in, as it requires less investment and limited responsibility when it comes to repairs. However, if you look at it long-term, the total cost of ownership may be less than renting. As you said, owners have freedom to make improvements or remodel the house as they like. I guess it all comes down to the most economical choice, also taking in consideration how long the owner plans to stay.

  5. Come to think of it, both option involves money.

    Renting cost money monthly for the rent, same with owning a house for the property taxes.

    However, in my opinion yes, buying a house is more expensive than renting in the first few years, but in the long run, it is still a great investment. Aside from the fact that, the house can be passed to generations.

  6. I wish I would have bought a house in Portland, OR when I first moved here. Since then the price of a house has skyrocketed and I can only afford to rent. Buying a house in a market like the one in Portland would have been a good option because I would have been able to rent it out while traveling. However, I do like the flexibility of renting.

    In the next post I would like to see more specific strategies for money saving, both in renting and in buying scenarios. Everybody wants to save money!

    1. Well don’t feel bad Mike, it happens. In fact, the prices of houses have skyrocketed in a lot of areas. That’s why you have to develop the eye to seize a great investment opportunity quick when it presents itself. Like you’ve mentioned, you can stay in a house or rent it out. But hey, you say you like renting right now so glad things are working fine for you in your current arrangement. There’s no right or wrong it’s just all about what works for you. And thanks for the future post tips, we’ll put that in the works!

  7. Buying a house is better in the long run. However, if you don’t have the money to put down on a house or if you life is not stable, then you’ll most likely prefer to rent.

  8. The decision will really depend on a person’s lifestyle. If you’re young and plan to move around, renting is indeed the better option, like what Shannon have said.

    However, it takes a life-long planning to have all things set in place. You have to make sure you’d still got enough moolah to see your lifestyle through until retirement.

  9. This is a great post! I would eventually like to buy, but as a young single person renting definitely makes more sense as I plan to move around and I don’t have to worry about maintenance. I also think while you’re renting you can save money and invest it instead of putting a large chunk of money towards a down payment.

  10. When I was a college student and living away from my parents for the first time, I rented a house with some friends. In hindsight, it was a good decision; given my lifestyle and personal finances as a student, I did not need the burden of a large mortgage and the home maintenance responsibilities.

    However, I am married now, with two school-age children and a secure job; at this stage in my life, it seems buying a home has been a good decision.

  11. Though buying a house is more expensive than renting, it is still a better investment. It can give someone a victorious feeling that they have something valuable in their possession. Aside from that, a house can turn into an ancestral home which can be passed down to generations, which will ensure them that they will have a roof over their head no matter what.

    However, renting is also a good option because you can easily move from one place to another, especially if your job requires you to do so.

    In the end it all boils down to your current financial status, job, family size, and personal opinion. Seeking for a financial adviser is better when you want someone credible in making the right choice.

  12. For people who live alone near the area where they work should just opt to renting one because buying a house and living alone can be a little difficult. Difficult in the sense that you have to think about taxes and such, security, and all the bills falls on you alone. Whereas when you rent one, all you just do is pay on time, though you have very little control over it. When you are renting one, try as much as possible to be friendly and nice to neighbors, especially your landlord/landlady.

  13. I believe buying a home is on of the biggest investments a person can make. You can save more money owning than renting. Also, it gives you a sense of belonging and permanency in the community, as opposed to the temporary feeling of renting. Most importantly, the property can be passed on to loved ones. Then again, to each his/her own.

  14. Owning your own home gives you a sense of pride that renting your home never will. Ownership, however, all but requires the purchaser to have a large emergency savings account for when the big ticket items need replaced.

  15. The advantages of buying and renting homes are comparable. And certain things work more in favour of renting than buying, such as taxes and maintenance and lot of the peripherals attached to buying of homes. However, planning towards buying a home gives a dweller a sense of permanence and adequacy and long term monetary security in case of a well planned investment.

  16. I think the decision to own or rent really depends on where you feel you stand financially, sometimes it may seem like you are ready to buy but when you go through the process of trying to buy and actually looking for what you want, you may find that your finances don’t match your desires and unless you are willing to compromise, you end up somewhat disappointed. At the end of the day, I believe buying has it’s perks, you can rent out for extra income if you own to help build your value so if you can afford it and sustain it, buy but ensure it’s within your financial capacity.

  17. IMO it’s also a matter of how much disposable income you have, a down payment for a house is often not doable for most people, especially in this economy. And even if you do manage to get the money, banks will do their best to eat you alive.

  18. I think the decision comes down to your financial situation and your comfort level. Renting is good because it’s more flexible. If opportunities come up that require you to move or change location, it’s far easier to leave a rental property than it is to sell a house. On the other side, owning a home is a great option if you have the financial capability for it. The level of ownership is unparalleled and so is the equity!

  19. I think the choice depends on the person and whether or not they are considering staying in one place. Young people especially are moving around a lot, or are on contract employment, so I think they might prefer to rent because it makes it easier for them to move around easily.

    1. I think it all depends on where you live. In the large urban centres, with many cities around the country just waiting for the housing market bubble to burst, it’s much better to be renting. But I do believe that in the long term owning your own home and building that equity will afford you a financial and personal stability that renting cannot. Besides, if you own your own home, as you pay off your mortgage your monthly payments will decrease, whereas as a renter, your landlord only increases your monthly rent each year.

  20. Personally, I feel that the choice really depends on the person. There are people who choose to veer away from unnecessary stress that may arise from buying and owning a house like finding the right contractors, selecting the best materials for home improvement, etc., so they just opt for the less complicated route which is renting. On the other hand, there are those who prefer to have their own personal touch in their homes without worrying about someone who will disagree. There are also several factors one needs to consider, like finances, location, and proximity from work, among others. At the end of the day, it will all boil down to a combination of everything. Lay down your options and weigh them very well.

  21. For me it is better to have your own house. Because when you rent a house it is hassle especially paying a monthly rental fees. And of course you can decorate your home as much as you want. You have an option if you want to renovate it. In our case we were renting for almost five years and I am very disturbed about our land lady because she’s keep on asking about advanced payment. Now, We have our own house is just fun to live and decorate along with your family.

  22. Buying or renting a home is definitely a big decision to make. I think it all depends on your status in life and your future plans. If you have a stable job and do not consider moving from one city to another, then buying your own home might be a good choice. But if you keep on changing jobs and can’t stay on one place then renting is definitely for you.

  23. As you mentioned, owning or renting a home is a personal one and I may add that it depends upon your budget and your status. I am single and I travel a lot so for me personally, I prefer renting because I don’t have to worry about maintenance or going underwater. I think I will buy or build my own home when I am ready to settle down in one place

  24. It all depends on finances, really. If you have enough money to buy one, then why not, right? But if you dont have enougj money, then renting might be the beffter choice as of the mean time

  25. I’ve always rented houses. For one my credit isn’t good enough to buy my own place but also because I like the freedom of renting a house. I don’t have to stay in the same house for the rest of my life because property value went down and I can’t sell it. I’m renting so I just fulfill my lease and if I decide to stay sign a new one if not on to the next adventure. But that’s just me.

  26. Buying one is far better than renting one. You get to see where your money is going. Unlike renting, you’re just wasting money. In buying, you enter yourself into a really great investment.

  27. If you are looking for a long time consideration and you have the money, buying a house is a better option than renting one. It may seem more expensive than renting at first but the money you spent will be a very good investment for the future. A house of your own can benefit not only you but your children as well. You are in control of everything since it is your own property. One more thing, as you aged, it is better to have your own property where you and your family can settle without the worry of paying the monthly rent.

  28. It all depends on our current economic status . for myself if i have enough cash i will prefer to buy a house what ever it’s size than a car for example it is priority number one of my all needs.

  29. Buying vs Renting really depends on what works for you personally. Like you’ve outlined, if you want to build up equity home ownership is the way to go. Renting seems to fit for those who prefer not to make a long term commitment and perhaps want the flexibility of moving around. Personally, it’s important to me to be able to make changes to my home, as you mentioned, remodelling can be a benefit of home ownership, and therefore, buying a home is a better choice for me!

  30. I’ve owned my home for many years and despite the raising property tax, I would never go back to renting. The equity I have in my home gives me peace of mind – something you just don’t get with renting!

  31. Buying a house is better if you have budget. Practically, renting can be the better option if you only have less budget and your work is not permanent.

  32. You really make it seem so easy with your presentation but I find this matter to be actually something
    which I think I would never understand. It seems
    too complex and extremely broad for me. I am looking
    forward for your next post, I will try to get the hang of it!

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