financialpost.org – financial news

Buy or rent a house

A house, undoubtedly, is the most expensive purchase many of us may ever make. Either you buy or rent a house, each choice has its own benefits and hazards. Owning a house has a number of advantages over renting a house. For instance, you can exercise your right to tax write-offs, you can control loan payment options, and you can upgrade your home as you wish and when you wish. When you rent a house, there are no tax write-offs, a rent may increase periodically, and you need permission of a landlord to make any changes with regard to renovation or upgrading. Of course, owning a house involves many risks as well. For instance, property maintenance is solely your responsibility, house upgrades may reach thousands of dollars, you pay for all utilities, insurance, or property taxes, and if you want to re-locate, you have to sell, lease, or rent your property. When you rent a house, it’s your landlord who manages all general repairs, house upgrades are a financial responsibility of a landlord, a house may include utilities, insurance, or property taxes, and you’re free to move once your lease expires.
All in all, home ownership is probably the best investment due to its long term benefits.