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It is often assumed that those who "own" their home are better off than those who rent. There is indeed some truth to this, both in terms of bricks and mortar stability as well as from a long term, purely financial standpoint. Of course this is assuming that the market is in your favor at the time of buying and/or selling and that no major losses occur over the period of home ownership, such as an unexpected loss of income, unexpected significant costs associated with owning a home, or dramatic changes in the economy, such as high interest rates for example, as experienced in the 1980's leaving many a home owner struggling to make ends meet and many more forced to sell at the worst possible time.

There is no correct answer of course to whether one should buy or rent, only a list of considerations to take into account when making the decision. As with most things in life, for every upside, there is a downside. Here's a look at both:

Renting:

FLEXIBILITY. Flexibility and the freedom to "get-up-and-go" can be a wonderful advantage for those wanting to travel, try new living locations, or upsize/downsize according to needs and financial resources.

What's the downside? your landlord also has the flexibility to "get up and go", selling your home out from under you, kicking you out to renovate or have family move in, leaving you searching for a new place to live and having to pack up and move yet again.

NO HASSLES. When the roof leaks and the pipes burst, it's someone else's responsibility

What's the downside? You are dependent on your landlord to look after the place and make repairs quickly, which may or may not happen, leaving you with a big mess and a lot of frustration (or no water and a hole in your roof)

NO HIDDEN COSTS. What you agree to on your lease is what you pay. You don't have to worry about property taxes, maintenance or unexpected repair costs.

What's the downside? There really isn't one, although it is always possible that your landlord could continue to raise the rent over time leaving you unable to afford your home.

MORE LIQUID CASH. Renting is usually less expensive month to month than carrying a mortgage, which gives you the choice of how to spend or invest your money (assuming your rent is not eating up your paycheck). You can go on that vacation, buy that car, and maybe even try your hand at the stock market.

What's the downside? You have no obligation to put money into your investment every month and may be tempted to spend your cash for short term enjoyment.

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