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What Makes More Sense – Renting or Owning a Home?

renting or owning a homeFinancially, many people assume it is better to own a home rather than rent. There are in fact many advantages to homeownership. When you own your own home, you have a valuable asset that you can sell, borrow against, or rent. Lenders are often more willing to consider you for an array of personal loans and secured loans if you own your own home. Homeowners also enjoy some tax privileges.

However, there are also many advantages to renting a home. If you do not want to be tied down to one place, renting allows you to change your place of residence often. There are costs and hassles associated with buying a home, and you can avoid these if you move often by renting. As well, renting sometimes makes sense financially. Owning a home is expensive; you need to pay taxes, a mortgage, insurance, home repair costs, and other related costs. Many people find that renting is less expensive than owning and if you invest the money you save by renting, you might enjoy investing in certificates of deposits, stocks, and other investments which might actually put you ahead of some homeowners. Don’t assume that owning is the only smart choice. Consider your goals and lifestyle and consider overall home costs before deciding.…