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Renting vs. Owning

Renting vs. Owning

Life often brings moments when we are obliged to make a tough choice. One such situation arises when you get puzzled between whether to own a house or to choose to rent on it. This decision is an essential factor determining aspects that affect the money that remains with you at the month-end, your savings, and your lifestyle.

People are more inclined towards ownership, particularly in the United States. Perhaps, it is a part of the American dream to own a house, yet, it’s not always better to own a home over renting. The need is to consider the pros and cons of both and make the right decision based on your specific needs.


Renting has its own pros and cons. First things first, renting means that you can move sans any penalties every time your lease terminates. However, this also means that you will have to move suddenly in case your landlord is willing to sell the property.
Renting has always been seen with a critical eye considering the myth that it’s all about “throwing away” money. The situation is far from reality. You need a shelter to live, and for that, you need to pay money either way.

Pros Of Renting:

1. Low Rent Payments

This is an obvious one but is actually really crucial. If you do not have the capital required to own a house or mortgage, renting is an ideal solution to have a comfortable stay.

2. You Aren’t Responsible For Any Repairs

Imagine you own a house, and the roof starts falling. You will have your moments of panic and then spend a handsome amount of money to get it repaired. Now visualize the same situation in the case of renting on a property. You’ll just have to pick your mobile phone and call your landlord asking for repairs. Such unplanned incidents aren’t going to affect your budget in case of renting.

3. Flexibility

Renting gives you an option to relocate as and when you wish. In the case of ownership, relocating isn’t an easy task as you’ll have to scout a place and a buyer of your own house. It is easy to get away with your current place in case of renting.

4. Low Upfront costs

Except for the security deposits, you don’t need to write a big check in case of renting. The costs of renting are much lower than the mortgage costs.

Cons Of Renting:

1. There Is Nothing You Can Do To Change The Property

A rental property limits your opportunities to make changes in the property. The property is not yours, and hence you don’t have a right to modify it as per your wishes.

2. The Value You Have Isn’t Changing

Your equity doesn’t increase in the case of renting. It is the landlord who makes profits through his asset.

3. Modifications In Rent

Irritating are the moments when the landlord increases the rent just when you began getting comfortable with the amount you currently pay. The date of lease renewal is a haunting date for anyone who stays on rent, as there are chances of unexpected rent increase on the day.

4. No Improvement In Credit Score

Paying your mortgage timely does wonders for your credit score. However, nothing of such sort happens in the case of renting.

5. Cosmetic Improvements Are Prohibited

Even if you have wonderful interior designing ideas in mind, you can’t apply them to your own house.


Owning a house is a dream of many. Apart from giving you a wonderful sense of achievement, owning a house also gives you some unavoidable pros to consider. Read on the pros and cons of owning a house.

Pros Of Owning:

1. Long Term investment

Once you buy a property, you not only get yourself a shelter for your residential or commercial needs but also offer yourself excellent long-term security. If your property stays in good condition and other factors of the market remain favorable, you can expect a rise in the value of your property years after you purchase it. Bingo!

2. Better Privacy

This point doesn’t need much explanation. Once you own a house, you are free to make any changes to the property you wish. You also are free to exercise your privacy the way you want, without having the need to answer anyone (unless you don’t misuse your liberties or break any laws or regulations).

3. Stability In Monthly Payments

A fixed, predetermined monthly payment ensures that you pay the same monthly payment until the mortgage is paid off. Unlike rents that can be raised after every annual renewal, you don’t need to fear any monthly payments change.

4. Stability

A self-owned shelter above our head gives you confidence and peace of mind. You are free to live the rest of your life at a place with pride.

Cons Of Owning:

1. Less Mobility

Yes, you get the stability of a secured shelter above your head, but you can’t neglect the fact that this stability can turn out to be overwhelming as well. It isn’t easy to get rid of an owned-house quickly, and therefore, it limits your mobility.

2. Maintenance Costs

Your house is your responsibility. There is no supervisor; you can call to get all the repairs done without a fuss. Every leak, every damage, every disturbance is all your responsibility to pay for. This adds up to your maintenance cost.

3. Equity Growth Doesn’t Happen Overnight

In the initial years of the mortgage, a large part of the payments goes for the interests. This makes it challenging to gain equities.

4. Property Values May Decrease

Yes, your owned property is a great asset. However, you cannot be 100% sure that your property prices will increase over time. Due to market disruptions, your property value may fall over a period of time. Therefore, 100% peace of mind is a dream in the case of an owned property.

5. Illiquidity

Properties are valuable, but it’s not as easy to sell them as it is in the case of stocks or any other assets.

Both renting and owning a property come with their own set of pros and cons. Therefore, it is necessary to check all your cards and make the right decision as per your needs.