by The Rogue Economist

Created on: March 31, 2010   Last Updated: April 01, 2010

One question I can guarantee to be asked is which is better, to buy or rent a home? Now when an Englishman asks me this I have to pause for thought, my response does not always make sense and very often gets a non-committal response and that's the ones being nice.

If you will allow me to explain very briefly, us Brits have been indoctrinated from way back when that a man's home is his castle and for that very reason we should take pride in ourselves and buy our own home. Think of it as a badge of honor, we take out a mortgage to buy a property that with interest often costs three times the original property value and after twenty five years of blood, sweat and tears we can call it our own.

People walk around with puffed out chests proud that they own their home outright, admittedly they had to scrimp and save to do it, foregoing many luxuries as well as investment opportunities on the journey, but through grit, determination and bloody nose strength of character they have accumulated what they feel to be their greatest asset in life, their own home. To say this gives a sense of pride and accomplishment is an understatement by more than half.

Then some people, admittedly not many, but some make the mistake of asking my opinion on which is better, to buy or rent a home. It has to be said people that have studied Economics can be a little brutal, resorting to cold facts rather than the latest tittle tattle from financial journalists riding the latest popularity wave. We don't get invited to many social gatherings because we have this tendency of upsetting people and not even realising, financial journalists on the other hand are far better at judging the mood and saying what is popular at the time.

As I was saying, to buy or rent, I pause take a deep breath and calmly say renting is by far the better option. I don't feel the need to back this up, I was asked for my professional opinion, I didn't jump in with jackboots blurting it out, I was asked, but, it doesn't usually stop there. After a pause, the questioner realising I am not elaborating and generally stuck in this stereotypical idea that you must buy your property starts blustering about how rent is somehow 'dead-money' and buying property is an investment, an asset and anything else that supports their current belief system and believe me, meddling with someones ingrained belief system is like stepping on a rattlesnake at times! So I attempt to calmly explain my position on this precarious issue, an issue

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