Many people at some point in their life must make a decision on whether they want to own or rent the houses that they live in. The decision made is influenced by a number of factors which when rationally analyzed should position a person to make the best tenure (possession) decision given their unique needs and circumstances. For some people owning and renting are substitutes while for others renting is but a step towards owning. Accordingly, the purpose of this article is to provide home seekers with the necessary information to enable them have control in the process of deciding which type or mode of home possession is ideal.
ARGUMENTS IN FAVOR OF RENTING AND BUYING
1.0 ARGUMENTS IN FAVOR OF RENTING
- It readily permits taking advantage of different occupational opportunities. That is it permits the freedom of mobility for the household from one house to another or one region to another.
- It permits changing of housing in order to meet changing family needs more readily than a household, which owns. This will include household integration as well as household growth. A household may move to a bigger house as it grows and vice versa.
- There is no risk in the loss of savings due to deteriorating neighborhood and also in defaulting, as is the case in a mortgage.
- Renting in most cases does not carry with it the responsibility for upkeep of the property for which many households lack the time and inclination. Costs of such services are usually included in the rent charges.
- Renting frequently permits living in a location more convenient to work.
2.0 ARGUMENTS IN FAVOR OF OWNING
- As an investment it can be a good source regular income.
- It is a good hedge against inflation.
The decision of whether to own or to rent will ultimately depend on the combination of factors that have the greatest effect on a household. However at any given time it may be more viable to own while in another to rent.