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Without some strong self discipline, you may find yourself with nothing to live on when you retire. And of course that final nagging thought that you are throwing your money away by paying off someone else's mortgage for them instead of your own.

Owning:

STABILITY. Owning your own home provides a sense of stability and security over the long term. There is no landlord to kick you out.

What's the downside? Well, it's all yours so if anything goes wrong, it's all on you. You've got to replace the roof. You've got to repair the drainage system. You've got to deal with the rats in the attic, etc.

HOME SWEET HOME. Since it's your home, you can do anything you want to it. If you love to renovate and redecorate, home ownership is the way to go. No one wants to pour all that work into fixing up someone else's house only to move out a year or two later.

What's the downside? You can fall into the renovation trap, finding one thing after the next that needs to be fixed or changed to better suite your tastes and before you know it, you have spent thousands and thousands of dollars on your house that you hadn't planned on spending. Even those who buy new homes often find they end up wanting to "change a few things."

LONG TERM INVESTMENT. You are putting your hard earned cash into a solid, concrete investment that also provides you with a place to live, which over time, will be worth considerably more than you paid for it (one hopes).

What's the downside? Investing always carries some risks. Owning a home usually requires a huge mortgage, with interest (another form of "throwing your money away") that you will be paying for the next 20-30 years in most cases. Should you run into hard times, lose your job, get sick etc. paying off a mortgage may be difficult. Also, should the house become more work than expected as often happens when buying older homes, you may not be able to afford that new roof, the new drain tiles, and/or the problem pipes forcing you to sell at a time when the market is down. There is no guarantee the real estate market will be in your favor when you need it to be.

So there it is in black and white, or rather, varying shades of gray. The decision to rent or buy your home is dependent on multiple factors, most of which are entirely personal. If carefully thought out both options could be the perfect choice depending on your lifestyle and your priorities. And lets not forget, nothing is forever. You can always change your mind, just keep some boxes handy.

Learn more about this author, Shannon Caldwell.
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