Renting a home has its pros and cons. The decision whether to rent depends on your personal and financial goals. There is no one right answer. There are several factors to consider before making the decision.
Renting a home can be very convenient for someone who moves a lot. You may have a job that requires frequent relocation. In this instance owning your own home would be a burden. Home ownership makes sense if you are going to live in the home for five years or more. Otherwise, renting is more advantageous.
You avoid having to pay a mortgage or property taxes. You don't have to come up with a down payment for a rented home. The responsibility for the home falls on the landlord. Water pipe breaks or a leaking roof is the expense of the home owner. That expense is the landlord's problem when you rent.
Renting may be more to your liking if you are not handy with repairing stuff yourself. By renting you have more time to do the things you want to do as well. You don't have to spend your weekend repairing a leaky toilet. You can go to the park or out to lunch instead.
Renting has its disadvantages too. One is that you do not build up an equity when you rent. You do build equity with a mortgage. Home ownership is a form of forced savings and an asset. You will need to save elsewhere, and stick to it, if you rent since you are not building an asset.
Rental payments can increase, often yearly. This is inflation at work. This can continue to strain your finances, especially if you are not receiving pay raises.
You may have to wait to have a problem repaired. A non-functioning stove or dishwasher requires the landlord to fix it. It may take a while for this to occur.
Your options for changing your home to your personal tastes may be limited. Changing the paint color may involve the landlord's approval. The same applies to putting up paintings due to the necessity of nail holes. Carpeting is something you will be stuck with until the landlord chooses to replace it.
Privacy issues may be a problem when you rent. Your next door neighbor may be very noisy. Homes have more privacy than apartments but privacy issues still occur.
It pays to weigh the pros and cons when deciding whether to rent. Some people will find renting ideal. Others will choose to own their own home. Either decision can work out.