If money is not an issue, is it better to rent or buy? I personally preferred to buy, regardless of the situation; career, relationship status, which state you reside, etc. Of course there are pros and cons in owning a home versus renting it, but I still think the pros trump the cons.
Real Estate Goes Up in Value, So Does Rent Price.
If you think if owning a home costs a lot due to mortgage interest, home insurance and property tax, the rental market price also goes up. While by owning a home, you can sell it someday and make money out of it, it’s an investment, renting just a straight expense. Mortgage payment most likely fix in value for certain period of time while rent price could go up every year depending on the agreement with the landlord. Plus mortgage interest and property tax payments are tax deductible on tax return. So it’s a win-win situation for the homeowner.
Long Term vs Short Term Stay
Some people say renting gives more flexibility in where they want to get a job and live. I don’t think that’s true. Either owning a home or renting a place, when you have to move due to a job or personal matter, the moving cost is still there. Renting doesn’t give much more flexibility than owning in terms of moving places. Maybe if renting, you don’t have to figure out what to do with your current place, less headache, less thing to worry about. But when you own a home, you have the option to sell it or to rent it out. Either way, you’re making an extra money.
This is where a lot of people say it’s one of the “perks” of being a homeowner, dealing with home repair issues. If something breaks in the house (assuming you didn’t break it) when you’re a tenant, it’s the expense to the landlord, the owner of the house. Depending on how big the issue is, yes, it is a headache for the homeowner but this is what home warranty and homeowner’s insurance are for; help minimizing the repair cost.
The Pride of Home Ownership
When you are the home owner, you can do whatever you want to your house. You can repaint it and redecorate it to fit your taste without having to ask anybody’s permission. Certain houses may have restrictions from HOA (Home Owner’s Association) and/or the City where it is located. But most of the time those restrictions only apply to the outside part of the home or if you would to add an addition (a major remodeling work). For tenants, everything that you would like to change inside of the house, you have to ask the landlord’s permission; it can be as simple as repainting the wall color to fit your taste.
Just like in the Monopoly game, the more properties you own, the more chances for you to win the game. Therefore, I believe owning a home gives more benefits than renting a home.