Most people want the pride of ownership that comes with the purchase of a home. However, although homeownership offers many benefits, there are several instances when renting a home is a better choice.

Buying a home is a huge and ongoing commitment that your personal circumstances may not warrant. If you are a younger adult, perhaps just out of school, you may not be ready to put down roots just yet. Conversely, if you are an older single adult, maybe a widow or widower, the demands of keeping up a home may be too much for you to manage. Try to view your situation objectively when deciding whether to rent or buy.

This is especially important when you want to buy, and you may even qualify for the mortgage you need, but just barely. The costs involved in repairing a home can be staggering. If you are living paycheck to paycheck just to pay a mortgage, you will be unable to afford the thousands of dollars required for a new roof, or major plumbing repairs. You should rent, which is usually cheaper than buying, until you have a sufficient financial cushion built up to cover such large expenses.

And beyond these major expense items, there are other recurring costs associated with owning and maintaining a home that you can avoid by renting. Homeowners insurance and property taxes will be the landlord's responsibility. If the heater breaks in the middle of winter, the landlord will have to make sure it is repaired. Pest problems, wear and tear items, building code issues, none of these are your problem, at least financially, if you rent.

Finally, if you live in an area that is affected by a real estate "bubble" you will probably want it to "pop" before you jump in to the market. Real estate runs in cycles, at the high end of the cycle, when speculators have inflated prices so much that homeownership is out of reach for most people, the market can be said to be in a bubble.

But these effects are usually regional. For instance, most of California, where an applicant would have to earn over $100,000.00 per year to qualify for the mortgage required to buy a single family home, are in a bubble that is bursting. While in plenty of areas in Texas, property values are reasonable and still rising.

If you would prefer to own your home, but live in a bubble area, it is best for you to wait out the deflationary period as a renter. If you buy at the top of the market, you will find yourself in the uncomfortable position of being "upside-down." This means you will owe more on the home than it is worth.

Your personal situation, financial security and the local real estate market will all have a bearing on whether it is better for you to rent than own. After careful consideration of these factors you may be surprised to find that renting is better for you.

Learn more about this author, Cierna Ritts.
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