When it comes down to cost and convenience, is it better to rent or to buy a home? The answer is that it varies depending on your situation and financial prospects, but, when possible, it is almost always better to own a home than to rent property. Renting may seem like quite a deal as you do get access to a number of amenities at most rental properties and rent never seems like much but it is really not so clear cut. Owning a home also has the substantial benefit that, while you are still paying money towards owning the home, you are not actually losing that money like you would be when renting.
Renting property has the downside that any money you pay towards rent will be gone. It will not build your equity and it will not net you any returns in the future. The benefits are that you do not have to worry about upkeep or construction and that general maintenance will be handled by the landlord. Remember that your landlord is renting out property because they are earning a profit on this though and that it is not out of the kindness of their heart that they entered the rental market. You are paying more to them than your living situation is worth, often for less space than you would get if you owned your own home.
A big advantage that renting has over owning is that it is cheaper in the short-term, though. You will likely put down two months’ rent when entering a rental agreement and then just begin paying a small set sum every month as opposed to having to put down several hundreds of thousands of dollars at once for a home and then paying property taxes and mortgage payments on your home.
Owning property has a substantial advantage over renting in that when you pay into your home, you are effectively not losing that money. Any money you pay towards your mortgage translates to your debt being lifted and the property in its full value becoming yours. Best yet, any money you put towards improving the property increases the value of your property and your net worth. This means that any work and money you put towards your house now is actually an investment towards the future. Another benefit is that you are not paying marked up prices like a renter. A downside to owning a house though is that the full responsibility of the household is now yours. No one will send maintenance workers to fix your plumbing when your pipes break, so you must hire a plumber or do it yourself. The burden of property tax also begins when you own a home, meaning that it is far from a free venture. It is very nice to say that something is yours at the end of the day, though, versus saying that you live on someone else’s land.