has an opinion on whether it is better to rent or buy your own home. So
often, opinions are based on personal circumstances and often what is
better for one person may not be the best solution for someone else.
This article offers you the advantages and disadvantages of both renting
and buying. Since you are the one that must decide for yourself, based
on what you perceive will work the best for you, itís best to do a
little research and soul-searching.
Ė renting can be much cheaper than buying
commitment Ė Although most landlords would like you to sign a
one-year lease, this can sometimes be negotiable and it may even be
possible to start with a month-to-month contract.
maintenance Ė If the furnace diesÖcall the landlord. If the
plumbing backs upÖ.call the landlord. If the electrical system is
acting upÖcall the landlord. The only repairs you are responsible
for are the ones that you or one of your guests has caused.
(Plugging up the toilet is the tenantís responsibilityÖnot the
headaches Ė itís easy to move on if you donít like the
place or need something bigger, and you donít have to worry about
selling, or finding a new tenant.
the real estate market takes a big dive, you donít need to
worry. If the interest rates go sky-high, thatís no concern
for you. And you can always look for someplace cheaper to live if
you need to. If you own your own home, try asking the bank to reduce
your payments, and see how far you can get!
have no control over your own living space. You canít
renovate or decorate as youíd like, and always have to ask
permission to make changes. If you donít get the okay from the
landlord, you will either have to return your unit to its original
condition, or pay to have the landlord do the work.
rental units have many, many regulations regarding smoking,
pets, parties, noise, and so on. If you were to buy a condo, you
would likely have the same regulations, but if you bought your own
house, you would have more freedom to live your own life. Have as
many pets as you want. Throw a party every night if you want. You
get the idea. If you rent, breaking those rules can get you evicted,
which can be very inconvenient.
are helping to pay off someone elseís mortgage, when you
could be paying down your own.
you live in an apartment, you have to put up with other peopleís
noises and smells. If youíre used to it, no problem, but it
can be unpleasant at times.
in yourself. You wonít be paying the mortgage for anyone
except yourself. And if the bank is willing to lend you the money,
you can be sure they think you can afford it. Thatís their
businessÖto lend you money. They wonít give money to a poor
increase. You can improve your asset. New paint and flooring can
increase the value of your house significantly, depending on the
condition it was in when you bought it. And if the bank agrees that
the value of your house has gone up, you may be able to withdraw
some of that equity to purchase something else that is important to
you, generally through a line of credit. That money can come in very
When prices drop, as they have lately in many cities in North
America, itís a great time to buy. Statistics show that real
estate will always increase in value. Do you know of any houses that
are worth less than they were twenty or thirty years ago? What goes
down will always come up. Real estate prices always go up and down,
but they almost always go up higher than the time before. You donít
have to buy when prices are high, but you can buy what you can
afford if you donít want to wait for another slow down in real
You can do whatever you want. The only people that can stop you are
the police, the building inspector, and the health department! Well,
maybe some others too. But you can have as many pets, parties and
friends over as you like.
of Ownership. This is very important to some people. Thereís
nothing quite like the feeling of living in something that you own!
Cutting the grass or shoveling the driveway at a rental house isnít
nearly as satisfying as cutting your own grass and shoveling your
very own driveway.
You canít get a notice saying that your unit is being sold, or
you will have to move out because the landlord wants to do major
term benefits. When your retirement days start to loom over the
horizon and your house is paid off, life can be very good. If you
are still making those monthly rent payments, chances are that you
will have to pay them for the rest of your life. And rents seem to
increase faster than pensions do!
locked in. For some people, it doesnít make sense to buy. If
you think that your job will take you to another city every few
months, itís probably not a good idea to buy and sell your house
each time you get transferred. Even if you only move once a year, itís
expensive to sell and then buy another home each time.
You are the one that will have to look after all those pesky
little issuesÖtoilets, sinks, leaks, mildew, electrical problems,
etc. If you have to hire someone every time something goes wrong, it
can get expensive.
the bills. Often rental units come with some utilities that are
paid for you, like water and sewage, or hydro, or gas. And itís
nice to turn up the heat on those chilly days knowing that someone
else is paying for it. And if you canít pay your bills, there are
Not everyone is able to come up with even a 5% down payment. It
takes cash to buy a house. Saving up isnít easy, or even possible
for many people. And if your credit rating is poor, chances arenít
great that the bank will be willing to lend you a whole lot.
taking into consideration the pros and cons of each situation, itís
still a personal choice. If you arenít ready for the responsibility of
owning your own home, or if your lifestyle would be better suited to
renting, then thatís the right decision for you. However, financially
it is a better choice if you can buy your own home. Youíll be
increasing your personal worth, rather than that of the landlord.
you have other reasons for making the choice that you have, thatís
great. But please make sure that you have made a choice, rather than
letting yourself drift into the situation you find yourself in. You may
find that you will want to change your situation, and if not, at least
you have decided what is best for you!