At some point, almost every adult in history has to make the of whether they want to purchase a home and become a homeowner, or if they would prefer to remain a renter. There are several advantages to both, so it becomes a personal decision that each person must make, either on their own, or with the input of their spouse/partner.
Purchase -If you purchase a house, you become completely responsible for all damage that is done, all repairs that must be made. If the house has to be painted, it is your responsibility, if the floors need to be replaced, that is also your responsibility. This can make homeownership very expensive; however, there are numerous tax benefits that exist in owning your own home. Typically, most homeowners are not able to move every few years if their job or lifestyle demands it, this becomes very expensive due to the amount of interest as well as other fees associated with a mortgage. Unless you build a house, you may find yourself making expensive remodeling in an attempt to make your home more modern as time goes on. In addition, you may find yourself investing in remodeling to add an improvement, or additional space onto your home. If you are a homeowner, you have the option of taking out a home equity mortgage if you need to do renovations to the property to fund the work. With owning a home, you also have the ability to liquidate the property if a disaster occurs, as well as you are able to leave something to your family so that they will be taken care of and have a place to live. Many families enjoy having property that has been passed down from generation to generation that they are able to live in and raise their children. The monthly payments that you are making work towards actually owning the property, typically if you make extra payments this is applied directly towards the principal amount, which will substantially lower your interest and the amount paid overall for the property.
Rent -This is a good option for someone who has constant changes in their housing needs. Whether the reason for the change is location or size of the house renting is a better option. When renting property, the landlord is the person responsible for any damage or repairs that must be made, unless the landlord can specifically hold the tenant responsible based upon intentional damage the tenant has to pay for no repairs. Renters are able to pack up and move as often as they choose, they are not held back by the constraints that a mortgage can impose when you are wanting to move. Renters typically have lower payments than those paying a mortgage; however paying extra payments will not lower principal payments due to the fact that renters do not have a principal balance. Renters are able to stay in a place as little as a month without spending thousands to secure a new mortgage. Renters never have to deal with the hassle of selling property, or working out a contract to purchase.
As you can see the differences between renting and purchasing are quite different. Each person will make the decision, which they choose to do based upon, their individual needs as well as what their needs become. Someone may be a happy renter for years, then their needs change that would make becoming a homeowner a better decision. As your life changes your decision on whether to rent or own will also likely change. Many people wait years before deciding to purchase a house to ensure they are ready and responsible enough to handle homeownership.