If you want something, there are two common ways to get it: buy it or rent it. What are the advantages of owning and renting?
- Ownership: Wait, how is ownership an advantage to owning something? That seems a little bit redundant. Well, an extra measure of pride and excitement typically accompanies buying something like an automobile or a home. From a very early age, humans have an innate sense of ownership. Simply ask any parent of a two-year-old what their child’s favorite words are. The answer will likely be “no” and “mine.”
- Better long-term solution: Over a long period of time, you will pay less money if you own a home. If you are going to be using it every day for the next ten years, perhaps you should consider buying it. There can be also financial gains when owning things like property.
- Stability: When it comes to owning a house, it can actually be beneficial to overall wellness to be settled down in one location.
- Safety: Especially in suburban areas, when you own a home you are surrounded by other homeowners. Because homeowners have more to lose than renters, they are usually more vigilant in trying to deter criminal activity.
- Tax deductions: I know what you’re thinking. All those years of renting an apartment and you didn’t see a dime of tax deductions. Well, unfortunately for all the renters out there, property is a major exception to the rule. The tax deductions of renting primarily applies to businesses.
- You can’t afford to buy it: How is this an advantage you say? You can still have it by renting it.
- Less Risk. Houses are one of the few material things that can appreciate in value over time. However, there can also be occasional problems with the housing market. You don’t need to worry about any of that if you are renting.
- Less responsibility: You can decide if this is an advantage. Typically renting requires less maintenance. If you rent an apartment, often things like upkeep on the grounds is taken care of. If you lease a car, typically things like routine checkups are covered by the dealership.