The Benefit of Renting Verses Home-Owning

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The Benefits of Renting Verses Home-Owning A common belief is that it is better to own your own place to live as opposed to renting one from someone else. What has made this belief so common and is it accurate? While there can be a emotional gratitude to owning your own home, does that make it a better financial decision? There can be many advantages to renting a place to live as opposed to owning your own home. One of the costs people do not take into account when thinking about buying a home are the hidden costs of owning a home verse renting. First, when you rent a place to live and something breaks or wears out you simply contact your property owner and they take care of arranging to have it fixed. Whereas if you own the home…show more content…
Whereas a renter could expect to pay $267,750, figuring an average of 2% increase per year on rental fee, over the same time. Either way the homeowner or renter pays roughly the same amount at the end of 30 when all costs are taken into account. The renter just does not have to deal with the headaches associated with owning a home. The economy can also have an impact as to whether it is better to buy verse rent. During an economic down turn such as being experienced currently, the benefits of renting are even more pronounced. If a renter suffers a loss of employment and can no longer afford their rent they can more easily move to a place with lower rent. Whereas the home owner cannot move to a lower cost home until they can sell their current home. This could cause a serious financial problem over the long term if they cannot make their payments until the home sells. The home owner could lose their home to foreclosure and suffer a loss of all the money they have put into the home. Also if the homeowner can make their payments during the process to find a new job, they are limited to searching for a job in the area their home is located in. Whereas the person who rents is free to look for a new job anywhere. This gives them an advantage in finding a better paying job, not just one that can enable the homeowner to make their home

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