by Victoria Tiegert

Created on: June 15, 2009

The decision regarding whether you will buy or rent your next home is one that should be made with a great deal of consideration. There was a time that I would have said that it is always better to buy than to rent, but having had a bit more life experience, I now know that there are times when it is not necessarily as cut and dried as all that. There are some situations that make renting the better option and there are others which are ideal for purchasing a home of your own.

Of all of the benefits of buying, the best is probably the fact that you gain the pride of ownership. This may not sound like much until you experience it for the first time, but there is something that happens inside when you sign those papers and get those precious keys in your hand that is indescribable. It is like you enter a whole new world of freedom in certain respects and you know that you are building something of value in your life.

One of the respects that you can enjoy a new freedom in is home improvements. If you decide that you want to change something, you are free to do so. If you want to paint rainbows on the walls, no one can tell you not to. If you want to change all the lighting, flooring, and faucets, go ahead. This house is yours! You are the boss. There is no landlord to consult with at all.

When you buy a home, rather than rent, a portion of your money is going towards paying the principal on the loan. It takes a while before much of your payment goes to anything but interest, but even that has benefits that you won't have as a renter. Those benefits will be seen at tax time. You can write off all the interest that you have paid towards your home loan and that is a great deduction to have. There are also some first time buyer tax credits right now that you may qualify for.

That being said, home ownership is not for everyone, at every time. It takes a commitment that may last longer than you anticipated that it would at the initial purchase. This is where I have found myself. When I purchased my home, it was with the intent of moving within a few years. Of course, I couldn't foresee the current housing market which has left me upside down in my mortgage, owing more than the home is now valued at. So, here I am, stuck here and wanting to move but unable to sell for a high enough price to pay off the loan. That is one problem with home ownership. You are basically stuck there until you can sell. If you intend to move relatively soon, you may be better off renting.

Renting, although you are essentially paying someone else's mortgage, has its financial benefits, as well. If something breaks, such as a major appliance, or there is a home repair that needs to be done, all the renter has to do is contact the homeowner. There is no expense for the renters themselves since it is not really their home to repair and maintain.

When you rent, you can also move much easier in the case that you financial status changes and you need to find a lower monthly payment. Maybe someone loses a job or is experiencing a medical problem that is increasing other bills. Whatever the case, you have the freedom to move to better fit your situation.

As with almost everything in life, there are pros and cons to both renting and purchasing a home. What is best for one person may not be best for the next. Only you can decide which option is right for you.

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