However, other voices have emerged doubting this advice and indicating that renting is a great option if you already have some wealth built for yourself. While every person must determine their own financial path in life, here are some considerations, outside of creating equity.
If you can afford it, you can modify and customize things to your liking in your own home. Unfortunately, many leased homes have strict guidelines on what you can change. While some lenient landlords will be agreeable to a paint job or even updating some fixtures or flooring, they might not be so quick to let you remove walls or do major remodelling work.
The landlord must consider his long-term goals, ability to carry insurance on the property, and tax consequences for updates and changes. When you own a house, though, you can be creative with your home without needing a landlord’s permission.
When you lease a home, you will likely have to give up a bit of privacy to allow the landlord access to the house as needed. Things like repairs and regular maintenance are reasons why the landlord could access your home, as well as in emergencies or if there is some safety concern.
Many landlords also want personal information kept on file about your credit, employment, family, vehicle, etc. So, while owning a home will still require some outside intrusion for repairs and maintenance, you generally have more control over who is coming and going and when.
One of the biggest frustrations when leasing a home is when the landlord decides they no longer want you to live there. In many cases, through no fault of the tenant, landlords refuse to renew leases, leading to an unexpected move. This can be stressful, sometimes requiring major financial outlays, unwanted school changes for the kids, and the inconvenience of moving homes.
Alternatively, the current landlord may sell the property to someone else. When ownership changes happen, there is always the potential for policy changes that could create instability in your living situation. This could mean rate increases when your lease renews, new pet restrictions you must abide by, additional paperwork to fill out, or just dealing with a personality that isn't as cordial or accommodating.
As you can see, there are many reasons why owning a home can be preferable to leasing one, even if you are not focused on the financial aspect of it. However, when you add money-related considerations like the ability to grow equity through real estate appreciation and potential tax deductions, it becomes clear that owning a home has some major pluses compared to leasing.
At CleveDoesMore, the best part of our job is helping people make informed choices to minimize their risk while building equity and wealth for their future.