There have, are, and will always be arguments over whether it is better to own a house or to rent. It is a debate that can get very heated at times, so strong are people’s opinions.
There is never a clear winner for all. The problem is people don’t know your situation.
Renting and buying each have their own positives and negatives, and which one works best for you depends entirely on your situation.
If you move around a lot, then of course renting is better.
If you like to make changes to your house, then owning is better.
If you aren’t comfortable with a large mortgage, then renting is better.
If you don’t like the thought of being asked to move on from house to house, then owning is better.
There are many scenarios that suit the renter. And many that suit the owner.
Our preferences change over time too. For example, we could be a nomad in our 20’s and 30’s and renting works well. Then we could look to settle down in one location in our 40’s, where owning may become a better option.
I think renting gets a very bad wrap in New Zealand and have written several articles on the topic of home ownership. Just because I write about the negatives of home ownership though, doesn’t mean I think it is isn’t any good. Buying can be a great decision, and renting can be a great decision.
The decision to rent or buy a house is personal
There is a lot of grey area between the two options. The grey area is us. Individuals. What decision is best depends on us and our circumstances. It doesn’t depend on the factors in the rent vs buy argument.
Some of the benefits of home ownership mean nothing if it doesn’t apply to your situation. Likewise, some of the benefits of renting mean nothing if it doesn’t apply to your situation.
Either decision is bad if it is the wrong decision for your circumstances.
The other problem with this debate is that both sides of the debate claim that the other side of the argument will be doing their side forever.
Renting can suit at one stage of someone’s life. And owning could suit at another stage of that person’s life.
Same person. Different decisions. Both decisions right.
There is no black and white here. Very much grey. All anyone can do is to weigh up the pros and cons of each option, run the numbers, and consider how the factors of each are relevant to you and your situation.
There is no clear winner in this debate. The winner is which option is best for you. Renting is best for some. Buying is best for others. Two different answers, both of them right.
Don’t be pressured into making a decision that doesn’t suit you. Buying a house is extremely expensive and should be very thoughtfully considered.
So, don’t ask if it is better to rent or buy. Ask if it is better to rent or buy for YOU.
If you need help with analysing the decision to buy a house or not, then get in touch and we may be able to help.
The information contained on this site is the opinion of the individual author(s) based on their personal opinions, observation, research, and years of experience. The information offered by this website is general education only and is not meant to be taken as individualised financial advice, legal advice, tax advice, or any other kind of advice. You can read more of my disclaimer here