Owning A Home Vs. Renting

Since I left high school to pursue undergraduate studies, I can’t remember exactly how many times I moved from one place to another. If my memory is correct, it’s about 18 times or it could be more.

Of the 18 times that I moved, 3 times we bought our own home and sold our property twice. Many will call myself nomadic and probably am.

Most of those movements were triggered by job opportunities. Till now, I could not say for certain that I am not going to move again.

Hence, I can easily say, Forget Home Ownership!

It’s not the sole reason that I considered myself nomadic having moved so many times.

The truth is, it’s the never-ending financial obligation that comes with owning a home. Mortgage payments, property tax, home insurance, furnishings, maintenance and utility bills to name a few.

Even if your home is fully paid off, your financial obligation continues minus mortgage payments. For this reason, a home is always a liability no matter how I look at it in my humble opinion.

Whereas, there is another option which is way cheaper and offers greater flexibility: RENTING!

Firstly, I no longer worry yard works such as mowing my lawn,  fix leaky pipes, concerned that my furnace will break down, and that my roofing needs to be replaced soon. These are all taken care of by my landlord.

Just in the same way, renting has given us more time to stay outdoors: go for a walk, have picnicked in the park, going to the gym, attend social functions and community activities that we want to be involved with and going for a vacation.

More Flexibility!

Furthermore, renting gives us so much flexibility. If new opportunities come up, it’s easy for us to take that new challenge and relocate again for an ideal job.

Particularly, with renting especially if you are lucky enough to have a place that has been fully furnished just like in our case, you tend not to accumulate unwanted and unnecessary things.

Finally, we have been able to go on frequent travels without breaking the bank compared to when we had a huge mortgage.

Home ownership is forced savings while renting is wasting money!

It is a never-ending debate, that home ownership is better as it is a way of forced savings and renting is just wasting money.

Many homeowners and the less discipline financially, it may sound like a good choice owning a property considering you will build some equity over the years of paying your mortgage.

Undoubtedly, there is a strong sense of security and pride owning a home. On the other hand, there is also an ongoing concern of making sure you have continued employment to fulfill your financial obligations.

On the contrary, the same can be said with renting that money is wasted, if you continue to spend on liabilities and not invest your extra hard-earned money.

Thankfully, that is not the case. We try to remain frugal and embraced minimalism. We continue to gradually increase our income producing assets and eliminate liabilities.

 

My Final Thoughts

Owning a home vs renting definitely has its pros and cons. There are valid points on each side of the argument and it’s neither right nor wrong in my opinion depending on which side you are.

A homeowner can feel secure if it’s your home. You can do whatever you want and no one will tell you to vacate your place as long as you continue to fulfill your financial obligations.

As a renter there is a potential risk that you will be asked by your landlord that you have to vacate your place because they are going to use your place for their growing family or for whatever reasons or even sell the property.

Despite this potential risk, I still choose freedom (renting) over security (homeowner) for now.

 

Are you a homeowner or a renter? Why do you think one is better in your current situation?

Let me know in the section below.

 

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