Advantages And Disadvantages Of Owning A Home

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Introduction Although many people’s dream is to own a home, there are advantages and disadvantages of owning a home. There are lots of people who never want to own a home but would rather rent their home because there are also big advantages and disadvantages of renting a home. Your choice of how you consume your home depends on many factors including personal lifestyle, age, stage of life, your family size and circumstances, your health and your career (Siegel & Yacht, 2009).
The Advantages and Disadvantages of Renting a Home
There are many obvious advantages of renting a home. You are not tied to the property legally and financially. There is no long-term legal and financial obligations (Siegel & Yacht, 2009, p. 166). You do not have to maintain or repair the property and to pay for the expenses. Since you did not purchase a home, which have to be purchased with a down payment, one can assume you have more cash, liquidity (Siegel & Yacht, 2009). You might also have more cash because renting tends to be cheaper than owning home. I know many people who rather spend the cash on pursuing a career or a business. Lastly, you are free to pick up and leave which tends to be the main reason why lots of people rent instead of own. We learned in the past chapters that growing your asset is an important part of planning your personal finances. One of the major disadvantages of renting a home is that you are not growing your assets. There is no opportunity to gain
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