Pros and Cons of Renting Vs. Home Ownership -6 Important Questions

My husband and I have been married for almost 14 years now and we have never owned a home. We have thought about it many times but due to different circumstances throughout the years we have yet to do it. 

There are definitely pros and cons of renting vs. home ownership and we have weighed those both as minimalists and as a couple without children. Still, it is a massive decision for anyone and many things come into play. 

Are you a home owner? Or are you renting? Are you happy renting or do you long to own your own home? What is the best decision for a minimalist?

Let’s discuss the pros and cons renting vs. home ownership so we can get a better idea of the answer for each one of us. 

Why Should You Weigh the Pros and Cons of Renting Vs. Home Ownership? 

First of all why is it so important to weigh the pros and cons of renting vs. home ownership? Simply put, you should really think about this decision because it is a really big one and no answer is right for everyone. 

You should never make any financial decisions you cannot follow through on. You should also avoid making commitments when you aren’t sure your ready to settle down. At the same time you want to be wise with the money you do have and that can mean investing in the future rather than spending month by month.

Do You Need Flexibility or Stability? 

I am not a realtor or an expert but based on my research one of the first questions you should ask when weighing the pros and cons of buying a house is if you are ready to commit to a location for awhile. 

If you are looking to start a family or have no intention of moving within 5 years it may be a really good idea for you to buy a home. 

If on the other hand you are unsure of what will be happening in your life in the next five years, you are not starting a family, or you desire to travel more or possibly move for work, renting will probably be a better choice for you. 

Are you looking for flexibility or long term stability? The answer will influence your decision to buy or rent.

What is Most Cost Effective In Your Area? 

When you think of the pros and cons of buying a house one of biggest things that will hold you back is the up front cost of the down payment. But what if you have some money saved up or you can qualify for a special program like a first time home buyer loan? 

In that case you may want to consider your monthly costs. In some areas a mortgage may be cheaper than rent. Don’t forget however that home ownership comes with other costs like maintenance, taxes, utilities and unexpected repairs. 

Although some refer to renting as “throwing your money away” because you are not investing in ownership it does have the advantage of being a more predictable monthly cost. At least for the length of your lease you know pretty exactly what you will be spending on rent each month whereas home ownership can come with surprise expenses.

Home Maintenance vs. Fees 

Another very important thing to consider when weighing the pros and cons of renting vs. buying a home is how much it will cost to maintain. Those maintenance costs can really add up with the average home owner spends between $4,000 and $18,000 a year taking care of home maintenance and repairs. 

On the other hand, when you are renting, almost all repairs are going to absorbed by the owner. 

Cost is not the only thing to consider though. Do you have the skills, time and energy to do some of this maintenance on your home or are you going to need to hire someone to do it for you. 

You should carefully consider the responsibility of buying and maintaining a home before committing. At the same time you sould also take good care of any place you rent, keeping it as clean and nice as you can. 

Space Requirements 

A lot of people look forward to owning a home of their own because they want more space inside and out. That is completely understandable. After all, we all want to have privacy and security at home. 

When deciding whether to rent or buy a home you should carefully consider how much space you need. Do you want a big yard? Are you wanting a big home for a big family or do you just need to declutter lots of stuff you don’t need or use?

Whether you are renting or buying the amount of space you want will probably come with a corresponding price tag. 

The Pros and Cons of Renting Vs. Buying and Getting the Timing Right

Ultimately there are pros and cons of renting and there are pros and cons of buying a house. What you decide to do will be unique to your situation, finances, family and goals. 

The last thing you should consider when buying a home is the timing. Are really high interest rates going to make your monthly bill even higher? Is it a buyers market right now? Do you want to commit to home ownership right now or will renting be better for a little while? On the other hand, is your rent skyrocketing? Are you looking to make a long term investment? Can you qualify for special loans?

To get the timing right you should definitely talk to real estate and financial professionals. They will know all the details about the current market. 

Will You Buy a Home or Continue Renting? 

I hope this article has helped you to walk through the pros and cons of renting vs. home ownership in your mind and decide what might be best for you. 

As I wrote this article and weighed the pros and cons of renting vs. buying a home I decided that the main reason we will most likely rent for a while longer is the timing and flexibility. We have some goals right now that may lead to new adventures in different locations and I’m not sure we are quite ready to settle down to the responsibility of home ownership right now. Our minimalist lifestyle is still in a state of change. 

What about you? What are some pros and cons of renting vs. buying a house to you? What has your experience been so far? Please share in the comments below!